yuan

October 2026 Newsletter

Fri, 09 Oct 2026 18:21:52 GMT

Prepare Your Bay Area Home for Fall

As the Bay Area transitions from warm, dry summer weather into cooler temperatures and the rainy season, now is a great time to give your home a seasonal checkup.

This practical checklist covers important maintenance tasks such as clearing gutters and downspouts, inspecting the roof and drainage, sealing windows and doors, servicing heating systems, trimming trees and landscaping, and checking smoke and carbon monoxide detectors. Taking care of small issues before the first heavy rains can help prevent water damage and costly repairs while keeping your home comfortable and looking its best.

For homeowners considering selling in the coming months, regular maintenance can also preserve curb appeal and help ensure the property makes a strong impression on future buyers.

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Living Local: Bay Area Edition

September 2026 Newsletter

Fri, 04 Sep 2026 00:33:15 GMT

Proposition 37 proposes $25 billion loan program to help Californians buy homes

Proposition 37 is a measure on the November ballot that proposes a $25 billion loan program to help California residents overcome the challenge of affording down payments on new homes. It’s a revenue bond that won’t cost taxpayers any money.

The measure, authored by former state Senate Majority Leader and California Assembly Speaker Bob Hertzberg, would allow the state government to issue bonds to help residents borrow up to 17% of their down payment, requiring them to contribute at least 3% themselves, while their primary mortgage would cover the remaining 80%.

"Homeownership is the biggest thing to create generational wealth, not even a question. Instead of rent, you have a house that rises in value, you're paying down the mortgage," Hertzberg said. "It creates real value, real generational wealth for people."

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Just Sold: A Smart House Hack in Cupertino

Congratulations to our buyers on their new Cupertino duplex! We beat out four competing offers to secure this property for $2,000,000.

This purchase checked all the boxes for our clients: they’ll live in one unit while renting out the other to generate additional income, all while staying in a highly regarded Cupertino school district so their kids can remain in their current schools without having to switch.

A great example of finding a home that works for both your family today and your financial goals for the future.

View 6401 Bollinger Road, Cupertino

Property Management Spotlight

Why Bay Area Rents Are Rising So Quickly While Home Prices

Have Stalled

If you own rental property in Silicon Valley, you may have noticed a significant change in the rental market this year. After several years of relatively modest rent growth, rents have gone up considerably in 2026.

The numbers are striking.

According to Apartment List, the median rent in San Jose reached $3,132 in September 2026 , an increase of 6.5% from a year ago . Even more notable, San Jose rents have increased 9.7% since the beginning of 2026 .

For comparison:

• San Jose rents: +6.5% year-over-year

• California rents: +1.8%

• U.S. rents: -0.8%

In other words, while rents have actually declined slightly nationwide, San Jose is experiencing one of the stronger rental markets in the country.

So why is this happening?

The Gap Between Renting and Buying Has Become Enormous

For much of the last decade, Bay Area home prices appreciated significantly. Rents increased too, but they did not always keep pace with the rising cost of purchasing a home.

Today, we’re beginning to see the consequences.

The typical San Jose home is now valued at approximately $1.39 million , according to Zillow. Despite the strong rental market, San Jose home values are actually down approximately 1.1% over the past year .

At the same time, mortgage rates remain high. As of late August, the average 30-year fixed mortgage rate was approximately 6.66% , according to Freddie Mac.

Consider a household purchasing a $1.5 million home with 20% down.

A $1.2 million mortgage at 6.66% would result in principal and interest payments of approximately $7,700 per month . Add property taxes, insurance and maintenance, and the true monthly cost of ownership can easily exceed $9,000 per month —before

considering an HOA fee. A similar property might rent for $4000-5000 per a month, with the renter not having to pay for maintenance, repairs, property taxes, and insurance.

The slowdown in home-price appreciation has also changed the rent-versus-buy calculation. During periods when Bay Area home values were rising rapidly, buyers could justify paying a significant monthly premium to own because they were building equity and benefiting from appreciation. With home prices now relatively flat, that incentive is less compelling. When a comparable home costs thousands of dollars more per month to own than to rent, and buyers can no longer assume significant near-term appreciation, renting becomes a much more attractive financial decision—even for households that can afford to buy.

Lately we’ve seen an influx of applicants with combined household incomes ranging from 800k to more than a million dollars per a year applying to renovated rentals in desirable neighborhoods.

The Rental Pool Is Changing

This is one of the biggest changes we are seeing.

The Bay Area rental market isn’t simply being driven by people who cannot qualify to purchase a home. Increasingly, it includes professionals and families who could potentially purchase but have decided that buying at today’s prices and interest rates doesn’t make financial sense.

That is particularly important for owners of single-family rental homes.

A family considering a $1.5 million to $3.5 million home may instead choose to rent a high quality home in Cupertino, Sunnyvale, Mountain View, Campbell, Los Gatos, Willow Glen or another desirable neighborhood.

But there is a limited supply of updated single-family rental homes in these areas, especially updated ones.

More affluent renters competing for limited inventory naturally puts upward pressure on rents.

We’re Also Seeing a “Flight to Quality”

Not every rental property is benefiting equally.

One of the clearest trends we have observed at Yuan Properties is the premium tenants are willing to pay for homes that are recently renovated and move-in ready.

Updated kitchens, remodeled bathrooms, attractive flooring, air conditioning, modern lighting and well-maintained landscaping have become increasingly important— particularly to higher-income tenants.

In some cases, we have seen renovated single-family homes rent for as much as $1,500 per month more than otherwise comparable homes.

That doesn’t mean every property should undergo a major renovation. However, it does mean owners should think carefully about improvements when a property becomes vacant.

In today’s market, the difference between an average rental and a highly desirable rental can translate into a substantial difference in monthly income.

Meanwhile, the Bay Area Housing Market Is Splitting in Two

There is another unusual trend occurring simultaneously.

While much of the traditional housing market has slowed because of affordability and high mortgage rates, the luxury market has remained remarkably strong.

Redfin recently analyzed Bay Area home-price appreciation by price tier during the AI boom.

From 2023 through 2025, average median home-price growth by Bay Area ZIP-code price tier was:

• $3.1M–$7.6M: +13.4%

• $1.5M–$2.8M: +6.3%

• $1.1M–$1.5M: +5.7%

• $650K–$1.1M: +1.3%

• $535K–$615K: -3.8%

The most expensive Bay Area neighborhoods appreciated more than twice as fast as the next-highest price tier.

Redfin attributes much of this difference to the tremendous amount of wealth being created by AI companies, and highly compensated technology employees.

This has created something of a two-speed housing market.

At the very top, wealthy buyers remain active and are considerably less sensitive to mortgage rates.

Below that level, many middle- and upper-middle-income households face a very different calculation. The cost of buying has become so high relative to renting that remaining a renter can make financial sense.

What Does This Mean for Rental Property Owners?

We don’t believe the recent acceleration in rents can be explained simply by inflation.

There appears to be a larger structural change occurring in Silicon Valley housing.

Home prices increased dramatically over the previous decade. Mortgage rates then increased substantially, making already-expensive homes considerably more expensive to finance. Meanwhile, rents did not increase at the same pace as the cost of homeownership.

The result is an unusually large affordability gap between renting and buying.

That gap is keeping households in the rental market longer and bringing higher-income households into competition for desirable rental properties—particularly renovated single family homes in good neighborhoods and school districts.

For rental property owners, this creates both an opportunity and a reason to be strategic.

The highest rent increase isn’t necessarily achieved simply by raising the asking rent every year. Maintaining the property well, making the right improvements between tenants and positioning the home correctly when it becomes available can have an increasingly significant impact on its rental value.

The rental market is strong, but the strongest demand appears to be increasingly concentrated in quality.

If you have any questions or comments about the Bay Area rental market feel free to reach out to us.

Spencer Yuan

Owner/Broker

408-892-1720

spencer@yuanpropeties.com

Yuanproperties.com

Sources: Apartment List September 2026 San Jose Rent Report; Zillow San Jose Housing Market data through July 2026; Freddie Mac Primary Mortgage Market Survey, August 2026; Redfin analysis of Bay Area MLS data.

Living Local: Bay Area Edition

Make the most of the season by following these simple guidelines

duncan.shea@appfolio.com (Appfolio Websites) — Thu, 15 Aug 2024 16:58:18 GMT

The new season is a great reason to make and keep resolutions. Whether it’s eating right or cleaning out the garage, here are some tips for making and keeping resolutions.

Make a list

Lists are great ways to stay on track. Write down some big things you want to accomplish and some smaller things, too.

Check the list regularly

Don’t forget to check in and see how you’re doing. Just because you don’t achieve the big goals right away doesn’t mean you’re not making progress.

Reward yourself

When you succeed in achieving a goal, be it a big one or a small one, make sure to pat yourself on the back.

Think positively

Positive thinking is a major factor in success. So instead of mulling over things that didn’t go quite right, remind yourself of things that did.

Keep in touch with site visitors and boost loyalty

duncan.shea@appfolio.com (Appfolio Websites) — Thu, 15 Aug 2024 16:58:17 GMT

There are so many good reasons to communicate with site visitors. Tell them about sales and new products or update them with tips and information.

Here are some reasons to make blogging part of your regular routine.

Blogging is an easy way to engage with site visitors

Writing a blog post is easy once you get the hang of it. Posts don’t need to be long or complicated. Just write about what you know, and do your best to write well.

Show customers your personality

When you write a blog post, you can really let your personality shine through. This can be a great tool for showing your distinct personality.

Blogging is a terrific form of communication

Blogs are a great communication tool. They tend to be longer than social media posts, which gives you plenty of space for sharing insights, handy tips and more.

It’s a great way to support and boost SEO

Search engines like sites that regularly post fresh content, and a blog is a great way of doing this. With relevant metadata for every post so search engines can find your content.

Drive traffic to your site

Every time you add a new post, people who have subscribed to it will have a reason to come back to your site. If the post is a good read, they’ll share it with others, bringing even more traffic!

Blogging is free

Maintaining a blog on your site is absolutely free. You can hire bloggers if you like or assign regularly blogging tasks to everyone in your company.

A natural way to build your brand

A blog is a wonderful way to build your brand’s distinct voice. Write about issues that are related to your industry and your customers.

Tips for writing great posts that increase your site traffic

duncan.shea@appfolio.com (Appfolio Websites) — Thu, 15 Aug 2024 16:58:17 GMT

Write about something you know. If you don’t know much about a specific topic that will interest your readers, invite an expert to write about it.

Speak to your audience

You know your audience better than anyone else, so keep them in mind as you write your blog posts. Write about things they care about. If you have a company Facebook page, look here to find topics to write about

Take a few moments to plan your post

Once you have a great idea for a post, write the first draft. Some people like to start with the title and then work on the paragraphs. Other people like to start with subtitles and go from there. Choose the method that works for you.

Don’t forget to add images

Be sure to include a few high-quality images in your blog. Images break up the text and make it more readable. They can also convey emotions or ideas that are hard to put into words.

Edit carefully before posting

Once you’re happy with the text, put it aside for a day or two, and then re-read it. You’ll probably find a few things you want to add, and a couple more that you want to remove. Have a friend or colleague look it over to make sure there are no mistakes. When your post is error-free, set it up in your blog and publish.