Social Media Boom Fuels Soaring South Bay Rents
SAN JOSE (KCBS) - More people want to live in San Jose thanks to growth in the technology sector fueled by social media, making the greater San Jose area one of the most expensive rental markets in the Bay Area.
Apartments in the San Jose Metropolitan Area cost $1,759 on average, up 12.6 percent from last year, according to RealFacts, a company that tracks residential rents.
KCBS' Matt Bigler Reports:
Rental prices in San Francisco by contrast averaged $1,600.
Economist Chris Thornberg of Beacon Economics credited recent investment at Bay Area companies with creating a "mini tech rush" that's driven up rents.
"There's a lot of capital flowing into the area. There's a lot of interest in these new, upcoming companies, not to mention, of course, the big giants that already exist," Thornberg said.
"Clearly on a supply and demand basis, San Jose is where it's at at this particular point in time," said Thornberg said.
Those high rents can weigh down the bottom line at a company struggling to compete as employees demand higher salaries to be able to afford living in the Bay Area.
"Ultimately this is probably one of the biggest taxes on California businesses," Thornberg said.
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