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Silicon Valley & Peninsula Multifamily ENews – April 2017
Silicon Valley & Peninsula Multifamily eNews
Welcome to the Silicon Valley Multifamily Group monthly eNews. This newsletter provides a collection of multifamily related articles and insights from various industry publications to help you as a building owner have a better understanding of the market. This newsletter is distributed with no obligation to multifamily property owners and investors in Santa Clara and San Mateo counties. If you would like to see specific information in this newsletter, or not see this newsletter at all, please let us know. We welcome your comments.Santa Clara Mandates Landlords Take Section 8 Tenants
Grasping for solutions to Silicon Valley’s affordable housing problem, Santa Clara County leaders approved a requirement Tuesday that landlords in unincorporated areas starting next year must make their properties available to poor renters who pay with the federal subsidy vouchers known as Section 8. Read More
San Jose is the Nation’s Most Competitive Housing Market
A new report says 69.6 percent of homes sold in San Jose last month went for above the listing price. No. 3 was Oakland, where 65.9% sold for more than the list price. read more
Mountain View Rent Control Takes Effect Immediately
A judge Wednesday denied CAA’s request to keep Mountain View’s rent control ordinance on hold pending the association’s legal challenge to the measure. The decision by Santa Clara County Superior Court Judge William Elfving means Mountain View’s rent control law, passed by voters in November as Measure V, takes effect immediately. read more
Bay Area Economy Buckles Under Strains Nearly half the millennials “likely” to leave. Confidence in the economy of the Bay Area has plunged, according to the annual Bay Area Council Poll of voters in the nine-county area. This could have a dramatic impact on rentals. read more
Silicon Valley Job Market Slows
Tech companies in San Francisco and San Mateo counties lost 700 jobs from January to February and tech employment has dropped by 3,200 jobs since hitting a peak last August, according to Ted Egan, San Francisco’s chief economist. read more
1,000 New Rental Units and Condos Coming to Sunnyvale
Construction on 994 units of housing next to the Lawrence Caltrain station, near the border of Sunnyvale and Santa Clara, will kick off this summer, developer SummerHill Housing Group said earlier this month. The development, dubbed Nuevo, will include 988 residential units and six live/work units. About 450 of those units will be for-sale residential units and 537 will be for-rent apartments. The development will also have about 40,000 square feet of neighborhood retail and restaurants. read more
CAA Calls on Landlords to Oppose San Jose’s Just Cause Ordinance — Attend the Council Meeting on 4/18/17
San Jose’s Apartment Rent Ordinance includes “just cause eviction,” a policy that requires a rental property owner to provide evidence to the City of a lease violation or an illegal act in order to evict a tenant. This policy change is known as the Tenant Protection Ordinance (TPO). The supposed goal of the TPO is to provide eviction protections to those tenants who supposedly fear retaliation from their landlords for making a claim for repair. Instead, the Housing Department took it a step too far by granting automatic eviction protection to any tenant who makes a claim for repair without requiring proof that a repair was necessary or if they contacted their landlord to request a repair. This extreme version of the ordinance that the Housing Department is proposing will:
Grant tenants the ability to file frivolous claims for repair with the City, which can shield them from ever being evicted.
Shift the burden of proof away from the tenant, requiring the landlord to prove if a tenant’s claim has merit or not.
Require a rental property owner to provide evidence of a lease violation or an illegal to the city in order to evict a tenant.
Make Your Opposition Known, Attend the Meeting: When: Tuesday, April 18th at 2:00 PM Where: Council Chambers, 200 E. Santa Clara St., San Jose read more
Despite Declines, San Francisco & San Jose Still Rank Among the Most Expensive Rental Markets
In February, rents in nine of the 12 most expensive US rental markets dropped – or plunged. In San Francisco, the most ludicrously expensive rental market in the country, the median asking rent for a one-bedroom apartment dropped 8.9% from a year ago to $3,270 a month, and 10.9% from the crazy peak in October 2015. Two-bedroom rents dropped 7.6% year-over-year to $4,500, and 10% from the peak, according to Zumper’s National Rent Report. The last time rents declined year-over-year in San Francisco was in April 2010 as the housing bust was hitting bottom. read more.
Matrix March Apartment Market Trends Report
March broke the five-month plateau in multifamily rents. Despite the overall deceleration in rent growth, average U.S monthly rents in March rose $6 to $1,312. The growth represents a year-over-year increase of 2.7% nationwide, yet it is only half of the growth rate seen at this point last year. Sadly, this is not the case for San Jose and San Francisco, cities which had decreasing rents. read more