With 13 prospective renters per empty unit on average, Silicon Valley was the fourth-most competitive market for tenants in California last year, according to RentCafe data published by the Association of Bay Area Governments. Demand is high and the vacancy rate stands at a tight 4.4%, according to the study.
Despite this, the share of new units on the market is very low. New openings in the second quarter of 2023 made up only 0.16% of the region’s total supply.
Land for new development in this in-demand neighborhood is hard to come by, according to Ken McCarren, president of Irvine, California-based MBK Rental Living.
Despite this, the developer is on track to add 389 units to this active market early next year with Vida at Morgan Hill, which just opened for pre-leasing in Santa Clara County, California. Designed by Orange, California-based AO Architects, the garden-style property’s stark white paneling poses a modern contrast to its sloped roofs, warm brown trims and farmhouse-style window shutters.
Interiors by Denver-based Trio put a contemporary twist on Mediterranean design motifs. “Imagine stepping into a sun-drenched haven, where warm wood tones dance with crisp white walls,” McCarren told Multifamily Dive. “Gleaming stainless steel appliances and sleek quartz countertops add a touch of contemporary sophistication, and open floor plans invite light and connection.”
Opening early this year, the property, which will be managed by Greystar, offers one- and two-bedroom apartments within a 15-mile radius of several major Silicon Valley employers, including Apple, Netflix, Adobe, Zoom and eBay. Downtown San Jose is 20 miles to the north, and the nearby Morgan Hill Caltrain station and 101 Freeway offer access to the Bay Area.
The amenity package covers the 19-acre property and includes a pool and spa, cabanas, a fitness center and private yoga studio, a coffee bar, a clubhouse and a coworking space with semi-private pods. Community green spaces and play parks are also located across the property. All landscaping on the site is drought-tolerant, and MBK Rental Living is targeting LEED-Gold certification for the project.
