Housing Trends in Santa Clara County: Renting vs. Owning in 2024

A recent report by ATTOM, a leading curator of land, property, and real estate data, sheds light on the housing market dynamics in the U.S., with a specific focus on Santa Clara County (San Jose), CA. The 2024 Rental Affordability Report reveals intriguing insights into the affordability of renting versus owning a three-bedroom home.

National Overview: Renting vs. Owning

The report indicates that, on a national scale, median three-bedroom rents are more affordable than owning a similarly-sized home in almost 90% of local markets across the country. Both renting and owning a three-bedroom home, however, continue to pose significant financial burdens for average workers, consuming more than one-third of their wages in the majority of county-level housing markets.

Despite the common trend of rents rising faster than home prices over the past year, the data suggests that even with this increase, renting remains more affordable than owning.

For property owners in the South Bay, the report signals a promising landscape. The fact that median three-bedroom rents are more affordable than owning in nearly 90% of local markets suggests a robust demand for rental properties. With renting proving to be a more financially feasible option for many, landlords in these markets can anticipate a steady demand for their rental units. Additionally, the trend of rents rising faster than home prices implies potential opportunities for landlords to maximize rental income. However, landlords must stay informed about local market dynamics to make strategic decisions and adapt to evolving trends. Do you need help maximizing your rental income? Call our South Bay property management company for optimal rental returns.

Santa Clara County (San Jose): A Unique Perspective

In Santa Clara County, the situation reflects broader national trends. The gap between renting and owning is noticeable, with renting requiring only 29% of average local wages, compared to 83% for typical home ownership expenses on a three-bedroom property. This finding positions Santa Clara County as one of the more favorable locations for renters among the populous urban and suburban markets.

Comparisons with Other Major Counties

Among the counties with populations exceeding 1 million, Santa Clara County stands out with a significant gap in affordability between renting and owning. In contrast to other high-cost areas like Honolulu, Hawaii, and Kings County (Brooklyn), NY, where owning is considerably less affordable than renting, Santa Clara County presents a more balanced scenario favoring renters.

Regional Affordability and Trends

The report highlights that renting a three-bedroom home, while still challenging for average workers, is most affordable in 2024 compared to owning in the nation’s largest counties. In Santa Clara County, the advantage of renting becomes evident as it requires a smaller portion of average local wages compared to major homeownership expenses.

Moreover, the data reveals that changes in three-bedroom rents have outpaced home price trends in nearly two-thirds of the analyzed U.S. counties, showcasing the dynamic nature of the rental market.

Affordability by Region

Santa Clara County aligns with the broader trend seen in the South and Midwest, where renting three-bedroom homes is more affordable. Among the 64 markets where median three-bedroom rents require less than one-third of average local wages, a significant number are situated in these regions.

Housing Dynamics in Santa Clara County

In conclusion, Santa Clara County maintains a distinctive position within the national housing landscape. The data suggests that, despite the challenges of high living costs, renting remains a more feasible option for many residents in the county. This information is crucial for prospective home seekers and policymakers alike, providing valuable insights into the ongoing dynamics of the local housing market.

For more detailed information and to explore the full 2024 Rental Affordability Report, visit ATTOM’s official website.