San Jose development continued, with 765 units delivered in January and an additional 10,481 apartments under way, according to Yardi Matrix in its winter 2021 report. Mirroring nationwide trends, investors expressed caution, with just $608 million in multifamily assets changing hands in 2020.
This came on the heels of 3,067 units coming online last year, which accounted for 2.4 percent of existing inventory, 20 basis points above the U.S. rate. The pipeline had 10,481 units under construction as of January. Yardi Matrix expects a little more than 3,000 units to be delivered in 2021, in line with last year’s completions.
The continued out-migration driven by a lack of affordable options — a trend strongly accelerated by the COVID-19 pandemic — pushed down the occupancy rate in stabilized properties from 95.4 percent to 92.7 percent in 2020. Another factor contributing to the dent in the occupancy rate was developers’ focus on lifestyle properties, as both recen
