San Jose is the heart of Silicon Valley — one of the world's largest tech and innovation hubs. San Jose is the third most populous city in California and the 10th most populous city in the United States with 1,021,795 calling this city home. Because San Jose is the “capital of Silicon Valley" with brilliant tech start-ups galore, it's one of the most expensive cities with the most millionaires and billionaires per capita.
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So, what does San Jose cost of living look like in this beautiful Northern California city? Here's a breakdown of the average rent in San Jose.
What is the average rent in San Jose?
San Jose is one of the most expensive housing markets in the nation and is one of eight cities with the most expensive rent across all bedroom types — studios, one-bedroom and two-bedroom apartments.
The city consists of several neighborhoods where rent prices range from $1,721 to $3,688 for a one-bedroom apartment. However, the average rent in San Jose is $2,846 for a one-bedroom apartment. Surprisingly, San Jose's cost of living is down roughly 8 percent year-over-year.
How does the average rent in San Jose compare to the national average? It is 76 percent more expensive to rent an apartment in San Jose compared to the national average, which is $1,617 for a one-bedroom apartment.
How much do I need to make to live in San Jose?
If you want to move to San Jose, you'll need to figure out how much you need to make to live comfortably. Regardless of the city you live in, financial experts recommend budgeting 30 percent of your pre-tax income on rent and housing costs (that includes utility costs, too!) If you're spending more than 30 percent of your income on housing, you'll likely be “house poor," a situation where you spend too much on rent and leave too little for other needs.
With that in mind, let's talk about San Jose's cost of living and how much you need to make to live here. The average rent in San Jose is $2,846 per month. So, you'd need to make at least $113,840 a year to pay your annual rent and stick to a reasonable budget.
If you want to determine how much you can afford based on your current salary, check out our rent calculator.
The cost of living in San Jose
San Jose's cost of living is more than just rent. When figuring out where you can afford to live, you also want to consider things like groceries, utilities, transportation and entertainment. Here's how the cost of living in San Jose compares to the national average.
- The overall cost of living index in San Jose is 154.7, which is 54.7 percent more than the national average
- Groceries in San Jose have a cost of living index of 133.2, which is 33.2 percent more than the national average
- Housing in San Jose has a cost of living index of 226.8, which is 126.8 percent more than the national average
- Utilities in San Jose have a cost of living index of 138.2, which is 38.2 percent more than the national average
- Transportation in San Jose has a cost of living index of 144.6, which is 44.6 percent more than the national average
- Healthcare in San Jose has a cost of living index of 122.7, which is 22.7 percent more than the national average
- Miscellaneous goods and services in San Jose have a cost of living index of 118.3, which is 18.3 percent more than the national average
Use this information to help you form your budget and determine if San Jose is the right city for you to move to.
The most and least expensive neighborhoods in San Jose
The city of San Jose is generally very expensive, but there are neighborhoods that range in price from most to least expensive. Generally, the neighborhoods that are closest to the metropolitan city-center are most expensive. This is because they're close to restaurants, shops and the immediate heart of the city.
If you're willing to live a little further out of the city-center and increase your commute time, you'll likely save on rent as neighborhoods on the outskirts are generally less expensive.
The most expensive San Jose neighborhoods
The most expensive neighborhoods in San Jose have lots of community parks, walkways, restaurants and boutique shops. This makes these areas appealing for people looking for a strong community to live in.
| Rank | Neighborhood | Average 1-BR Rent Price | YoY Rent Price Change |
|---|---|---|---|
| 1 | River Oaks | $3,688 | -2.12% |
| 2 | Santana Row | $3,478 | -10.71% |
| 3 | The Villas | $3,478 | -10.71% |
| 4 | Lynhaven | $3,346 | N/A |
| 5 | North San Jose | $3,211 | -11.12% |
| 6 | Winchester | $3,210 | -12.71% |
| 7 | Berryessa | $2,948 | 5.66% |
| 8 | Edenvale | $2,940 | -10.06% |
| 9 | North Park Apartment Village | $2,926 | -16.03% |
| 10 | Sherman Oaks | $2,892 | -5.38% |
The least expensive San Jose neighborhoods
The least expensive neighborhoods in San Jose allow renters to live in Silicon Valley but pay less in monthly rent.
| Rank | Neighborhood | Average 1-BR Rent Price | YoY Rent Price Change |
|---|---|---|---|
| 1 | Davis* | $1,721 | N/A |
| 2 | Castro | $2,019 | -1.52% |
| 3 | Del Marietta Southwest | $2,058 | -1.76% |
| 4 | Walnut Blossom | $2,155 | 8.56% |
| 5 | Blackford | $2,176 | -7.36% |
| 6 | Calabazas North | $2,177 | N/A |
| 7 | West Valley | $2,221 | -6.65% |
| 8 | Willow Glen | $2,262 | -8.79% |
| 9 | Brooktree | $2,294 | -3.52% |
| 10 | Townsend | $2,301 | N/A |
*May not be a true market representation due to insufficient inventory
Average rent prices in San Jose neighborhoods
While the average rent in San Jose is $2,846, rent prices vary by neighborhood. Check out all rent prices in San Jose neighborhoods.
| Neighborhood | Average 1-BR Rent Price | YoY Rent Price Change |
|---|---|---|
| Almaden Lake | $2,857 | -40.24% |
| Berryessa | $2,948 | 5.66% |
| Blackford | $2,176 | -7.36% |
| Blossom Valley | $2,792 | 7.68% |
| Brooktree | $2,294 | -3.52% |
| Buena Vista | $2,369 | -7.61% |
| Calabazas North | $2,177 | N/A |
| Castlemont | $2,334 | 0.61% |
| Castro | $2,019 | -1.52% |
| Central San Jose | $2,822 | -5.69% |
| Davis* | $1,721 | N/A |
| Del Marietta Southwest | $2,058 | -1.76% |
| Downtown | $2,822 | -5.05% |
| Edenvale | $2,940 | -10.06% |
| Garden Alameda | $2,703 | -8.21% |
| Greylands* | $2,413 | N/A |
| Loma Linda | $2,576 | 4.01% |
| Lynhaven | $3,346 | N/A |
| North Park Apartment Village | $2,926 | -16.03% |
| North San Jose | $3,211 | -11.12% |
| Parkview | $2,303 | -1.08% |
| Paseo* | $2,475 | -0.47% |
| River Oaks | $3,688 | -2.12% |
| Santana Row | $3,478 | -10.71% |
| Santee | $2,517 | -7.50% |
| Sherman Oaks | $2,892 | -5.38% |
| South San Jose | $2,433 | -3.87% |
| Summerside | $2,517 | -7.50% |
| The Villas | $3,478 | -10.71% |
| The Woods | $2,363 | 2.97% |
| Townsend | $2,301 | N/A |
| Walnut Blossom | $2,155 | 8.56% |
| West Valley | $2,221 | -6.65% |
| Willow Glen | $2,262 | -8.79% |
| Winchester | $3,210 | -12.71% |
*May not be a true market representation due to insufficient inventory
Find your San Jose neighborhood
Are you sold on living in San Jose, CA? Then it's time to find the right apartment that fits your budget and needs. Use our Apartment Finder tool to find the perfect place for you and your family.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.com's multifamily rental property inventory of one-bedroom apartments. Data was pulled in December 2020 and goes back for one year. We use a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
Cost of living data comes from the Council for Community and Economic Research and is based on the Oakland-Hayward-Berkeley CA Metro Division.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
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