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San José's property market shows steady growth with median home prices reaching $1.5 million as of September 2025.
Property values increased 5.0% over the past year, though central areas declined 2.2% while suburban neighborhoods like Willow Glen and Cambrian Park gained up to 12%. The market expects continued moderate growth of 2-4.6% annually, driven by tech industry demand and limited housing supply.
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San José's property market remains strong with 5.0% annual price growth, though transaction volume has decreased 6.9% indicating a cooling market.
Suburban neighborhoods significantly outperform central areas, with rental yields reaching up to 8.9% for apartments while single-family homes appreciate fastest.
| Market Metric | Current Status (Sept 2025) | 12-Month Change |
|---|---|---|
| Median Home Price | $1.5M | +5.0% |
| Price per Square Foot | $872 | -1.1% |
| Homes Sold (July) | 514 | -6.9% |
| Average Rent (Apartments) | $2,682/month | +3.3% |
| Days on Market | 20 days | Increasing |
| Mortgage Rates | 6.4% | Higher than 2024 |
| Best Performing Areas | Willow Glen, Cambrian Park | +8% to +12% |
What are the latest property price trends in San José right now?
San José's property market shows mixed signals as of September 2025, with overall growth but declining transaction volumes.
The median home price reached $1.5 million, representing a 5.0% increase over the past 12 months. However, price per square foot actually declined 1.1% year-over-year to $872, suggesting buyers are purchasing larger properties or different property types.
Transaction activity has cooled significantly, with only 514 homes sold in July 2025, down 6.9% from the previous year. This reduced activity has extended the average time on market to 20 days, indicating less urgency among buyers and potentially more negotiating power.
The rental market remains robust with average apartment rents at $2,682 per month, up 3.3% annually. Studios average $2,337, one-bedrooms $2,682, two-bedrooms $3,339, and three-bedrooms reach $4,185 and higher.
How have prices changed over the past 12 months?
San José's property market experienced moderate but uneven growth over the past year ending in July 2025.
Overall home prices rose 5.0% from July 2024 to July 2025, a deceleration from the faster growth rates seen in previous periods. This moderation reflects the impact of higher mortgage rates and increased market caution.
Central San José neighborhoods significantly underperformed, with prices declining 2.2% year-over-year to a median of $1.1 million. This suggests buyers are favoring suburban locations over urban core properties.
In contrast, affluent suburban areas showed strong appreciation. Willow Glen gained 12%, Cambrian Park increased 10%, and Silver Creek rose 8%, demonstrating clear geographic preferences among buyers seeking family-friendly neighborhoods with top-rated schools.
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What's the short-term forecast for prices in the next 6 to 12 months?
San José property prices are expected to continue rising but at a slower pace through mid-2026.
Analysts predict annual home value increases of 2-4.6% for the next 12 months, representing a significant moderation from recent years. This tempered growth reflects the impact of elevated mortgage rates averaging 6.4% in the second half of 2025.
Demand remains solid due to continued tech industry employment and limited housing inventory, but higher borrowing costs are reducing buyer enthusiasm and eliminating bidding wars that previously drove rapid price increases.
The inventory situation shows improvement compared to peak shortage periods, but supply remains constrained enough to support continued price appreciation, albeit at more sustainable levels than the explosive growth of recent years.
What's the medium-term outlook over the next 2 to 3 years?
San José's property market is projected to maintain steady appreciation through 2028, supported by fundamental economic drivers.
Home prices are likely to continue rising at a moderated pace of 2-4.6% annually, driven by sustained employment growth in the technology sector and ongoing housing shortages relative to demand.
By 2030, average San José home prices are projected to reach $1.45-1.5 million, representing a 17-18% cumulative increase from mid-2025 levels. This growth trajectory assumes continued economic stability and moderate interest rate environments.
The market's medium-term strength relies on San José's position as a major tech hub, attracting high-income professionals who can afford premium housing costs despite elevated mortgage rates.
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What's the long-term projection for the next 5 to 10 years?
San José's long-term property outlook remains positive, supported by structural economic advantages and geographic constraints.
Expect long-term annual price increases of 3-7% over the next decade, driven by San José's fundamentals including limited developable land, a strong technology industry, and sustained population growth from domestic and international migration.
The market may experience periodic fluctuations depending on technology sector performance and regulatory changes, but historical patterns favor continued upward movement over the long term.
Geographic limitations and established zoning restrictions will continue constraining supply growth, while the region's role as a global technology center should maintain demand from high-income buyers and investors.
Which neighborhoods in San José are expected to grow the most in value?
| Neighborhood | 2025 Median Price | Annual Price Change | Growth Drivers |
|---|---|---|---|
| Willow Glen | $1.86M | +12% | Historic charm, family-friendly, competitive market |
| Cambrian Park | $2.2M | +10% | Top-tier schools, high buyer demand |
| Silver Creek | $3.2M | +8% | Affluent area, scenic location, fast-moving market |
| Evergreen Hills | $1.35M | Steady appreciation | Tech professionals, family amenities |
| Central San José | $1.1M | -2.2% | Urban core challenges, buyer preference shifts |
How do forecasts differ between houses, condos, and apartments?
Different property types in San José show distinct performance patterns and growth trajectories.
Single-family homes demonstrate the highest appreciation rates, fastest sales, and strongest competition among buyers. These properties benefit most from school district quality and neighborhood amenities that attract tech professionals and growing families.
Condominiums experience slower but more stable appreciation compared to detached homes, with steady demand and less price volatility. Condos appeal to buyers seeking lower maintenance responsibilities and urban convenience.
Apartments lead price growth in some market segments, with annual increases reaching up to 12.1% in certain areas. This growth stems from strong rental market fundamentals and ongoing urbanization trends favoring dense housing options.
Investment returns vary significantly by property type, with apartments offering the highest rental yields while single-family homes provide the strongest long-term appreciation potential.
What are the rental yield expectations across different property types?
| Property Type | Average Price | Monthly Rent | Gross Yield | Area Examples |
|---|---|---|---|---|
| 1-bed apartment | $155,000 | $1,000 | 7.74-8.13% | Rohrmoser, Central SJ |
| 2-bed apartment | $200,000 | $1,400 | 8.4% | San José average |
| 3-bed apartment | $310,000 | $2,300 | 8.9% | San José average |
| Houses | $1.5M+ | $4,000+ | 3-4% (est.) | Cambrian, Willow Glen |
| Condos | $700K-1M | $2,000+ | 4-5% (est.) | Escazú, Santa Ana |
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Costa Rica versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How is demand shaping up for buyers who want to live in their property versus investors?
San José's property market shows distinct demand patterns between owner-occupiers and investment buyers.
Owner-occupiers demonstrate high demand in family-oriented suburban neighborhoods, particularly Cambrian Park, Willow Glen, and Evergreen Hills. Tech professionals and families prioritize reputable school districts, neighborhood amenities, and properties with strong future value potential.
Investment buyers focus primarily on condominiums and apartments near transit hubs and urban centers, seeking properties that generate strong rental cash flow. Notable growth appears in short-term rental listings through platforms like Airbnb, capitalizing on continued urbanization trends.
The balance between buyer types is shifting as slower investor activity emerges in overheated market segments, while more first-time buyers enter the market supported by tech industry job stability and competitive salaries.
Geographic preferences show owner-occupiers favoring suburban areas with family amenities, while investors concentrate on urban cores and transit-accessible locations with higher rental demand.
What is the typical budget range needed for each area and property type?
| Area | Property Type | Budget Range | Market Characteristics |
|---|---|---|---|
| Cambrian Park | House | $2.0M-$2.5M | Premium family neighborhood |
| Willow Glen | House | $1.8M-$2.3M | Historic area, competitive |
| Silver Creek | House | $3.0M-$3.5M | Luxury market segment |
| Central San José | House/Condo | $750K-$1.2M | Urban core, mixed performance |
| Escazú | Apartment | $186K-$430K | Upscale suburb |
| Santa Ana | Apartment | $147K-$273K | Growing suburban area |
| General San José | Apartment | $155K-$310K | Average market segment |
Where are the best opportunities right now if the goal is rental income, resale, or long-term living?
San José offers distinct opportunities depending on your investment or lifestyle objectives.
For rental income: Apartments and condominiums near universities, hospitals, and business districts provide the strongest returns, offering gross yields up to 9.23%. Rohrmoser, Mata Redonda, and central zones attract consistent tenant demand from professionals and students.
For resale potential: Single-family homes in top school districts demonstrate the highest buyer demand and most competitive appreciation. Cambrian Park, Willow Glen, and Silver Creek consistently attract multiple offers and achieve premium pricing due to their desirable amenities and family-friendly characteristics.
For long-term living: Suburban areas with established amenities and continued growth potential offer the best lifestyle value. Evergreen, Willow Glen, and Cambrian Park remain favorites among families and technology workers seeking high-quality schools, community amenities, and strong property values.
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What risks should buyers be aware of when entering the San José market now?
Several significant risks face San José property buyers in the current market environment.
Market timing risks: High prices combined with declining transaction volumes may signal a market plateau or potential price correction in certain areas. The 6.9% decrease in sales volume suggests reduced buyer confidence or affordability constraints.
Financing challenges: Mortgage rates averaging 6.4% significantly impact affordability and reduce buyer purchasing power compared to the low-rate environment of recent years. Higher rates also increase monthly carrying costs for investment properties.
Market dynamics shifts: Longer time on market periods indicate reduced urgency among buyers, potentially leading to more negotiation but also suggesting overpricing in some segments. Days-to-sale are increasing as homes sit unsold unless priced competitively.
Geographic variations: Some central areas have experienced price declines, requiring careful neighborhood-specific due diligence to avoid areas with structural challenges or shifting demand patterns.
Regulatory and economic risks: Possible new rent control legislation or restrictive short-term rental regulations could impact investment returns. The local economy's exposure to technology sector volatility, including potential hiring freezes or layoffs, could affect future housing demand.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
San José's property market continues showing growth momentum, particularly in suburban family neighborhoods and well-positioned apartments.
Long-term prospects remain positive for buyers who carefully select neighborhoods with ongoing infrastructure development, tech professional demand, and competitive school districts.
Sources
- Redfin San Jose Housing Market
- NoRad Real Estate San Jose Market
- Redfin Central San Jose Market
- Apartments.com San Jose Rent Trends
- SoFi San Jose Housing Market
- Block Change Real Estate San Jose Forecast
- The LatinVestor San Jose Price Forecasts
- Global Property Guide Costa Rica Yields
- The LatinVestor Costa Rica Forecast
- BnB Calc San Jose Market Data