45% of residents in San Jose are renters – among the highest shares in the nation.
San Jose, CA, is a major city in Silicon Valley, known for its tech industry and cultural diversity. Numerous major companies have headquarters in the city, including Apple, Google, Intel, and more, leading to a strong economy and many high-end amenities.
Residents can explore parks like Alum Rock Park, which offers hiking trails and scenic views, and Kelley Park, home to the Japanese Friendship Garden and Happy Hollow Park & Zoo. The city’s downtown area features attractions like the Tech Interactive, a museum focused on technology and innovation, and the San Jose Museum of Art. San Jose is also close to the Santa Cruz Mountains and the Pacific Ocean, providing plenty of opportunities for outdoor recreation.
But what’s happening with the rental market? And why do so many Los Angeles residents rent their home? Read on to learn everything you need to know.
45% of San Jose residents are renters; 55% are homeowners
44.8% of San Jose residents rent their home – the sixth-highest share in the country. 55.2% of residents own their home. Nationally, the average rentership rate is 34%.
A major reason for the high rentership rate is the area’s housing market. House prices have been consistently rising across the country, and have been especially unaffordable in coastal metros like San Jose and Los Angeles. The median sale price for a home in San Jose is $1,475,000, the highest among large metros in the nation.
High housing costs generally push people into renting.
San Jose actually leads the nation in most housing-related costs: median sale prices, luxury home prices, and rent prices are all the highest in the country (among large metros). In May, median sale prices surpassed the record-high of $1,500,000 set in 2022, and in June, luxury prices rose 16.4% to $4,830,000. Rent prices have topped the charts for months. A housing shortage is partly to blame for the high prices.
In 2021, you needed to make $122,040 per year to afford a two-bedroom rental at market value. Mortgage payments were even more, and prices have only risen since. In fact, an individual making $104,000 per year in 2023 was considered low-income.
High sale and rent prices have priced out many prospective residents, who instead searched for homes in more affordable areas. San Jose’s population in particular has dropped rapidly in recent years, mirroring trends seen in other expensive coastal metros.
What’s happening with nationwide rentership rates?
Nationwide, the rentership rate rose 1.9% year over year to 34.4% in the second quarter of 2024, meaning over one-third of Americans are renters. In contrast, homeownership saw a modest 0.6% increase, but remains much more common at 65.6%.
This is the third-straight quarter that rentership outpaced homeownership. The last time this happened was in 2022, when mortgage rates rose to the highest level since 2008. Rentership consistently outpaced homeownership from 2006-2017, as well.
Why are more people renting?
Rentership rates vary widely throughout the country and are generally correlated to house prices – the more expensive houses are, the more people will be pushed into renting.
One reason for the increase in rentership is because homeownership is historically unaffordable and showing little sign of improving. Sale prices are also growing much faster than rents: 4% year over year compared to 0.7%. Nearly two in five renters don’t think they’ll ever own a home.
Another reason is because rental supply has more or less kept up with increasing demand. New apartment construction skyrocketed to record levels during the pandemic and has only now started to slow, helping keep rent price growth low.
The U.S. has also been adding more renter households than homeowner households since 2022. The number of renter households grew at the second-fastest pace since 2015, while the number of homeowner households grew at the slowest pace since 2022.
Which U.S. metros have the highest share of renters?
Rentership rates are the highest in expensive coastal metros like Los Angeles (53%) and San Diego (52%), where house prices regularly surpass $1 million. Prices are also tied to available rental supply.
Metros with the highest share of renters
| Metro | Rentership rate | Homeownership rate |
| Los Angeles, CA | 53.0% | 47.0% |
| San Diego, CA | 52.4% | 47.6% |
| New York, NY | 50.1% | 49.9% |
| Fresno, CA | 49.0% | 51.0% |
| Austin, TX | 46.3% | 53.7% |
| San Jose, CA | 44.8% | 55.2% |
| Honolulu, HI | 42.5% | 57.5% |
| San Francisco, CA | 41.8% | 58.2% |
| Las Vegas, CA | 41.6% | 58.4% |
| San Antonio, TX | 40.9% | 59.1% |
Which U.S. metros have the lowest share of renters?
In particularly affordable metros, like Worcester, MA (23%) and North Port, FL (23%), rentership rates are the lowest. A lack of rental inventory and zoning restrictions could also play a role.
Metros with the lowest share of renters
| Metro | Rentership rate | Homeownership rate |
| Worcester, MA | 23.2% | 76.8% |
| North Port, FL | 23.3% | 76.7% |
| Albany, NY | 25.6% | 74.4% |
| Rochester, NY | 25.7% | 74.3% |
| Syracuse, NY | 26.2% | 73.8% |
| Cape Coral, FL | 26.3% | 73.7% |
| Cincinnati, OH | 26.8% | 73.2% |
| Hartford, CT | 27.2% | 72.8% |
| Richmond, VA | 27.7% | 72.3% |
| Albuquerque, NM | 27.7% | 72.3% |
Methodology
Based on a Redfin analysis of U.S. Census Bureau data for the 75 largest U.S. metros. A renter household is defined as one where the head of the household reports to the Census that they are renting out the property. A homeowner household is one where the head of household reports they own the property.
