Housing Committee Discusses Rising Vacancy Rates and Rent Trends in Newly Built Units

The August 28, 2025, meeting of the City of Mountain View Rental Housing Committee focused on key issues affecting the local rental market, including vacancy rates and rental prices for newly built and fully covered units.

The meeting began with a discussion on the significant disparity in rental prices, noting that rents for newly constructed units are 55% higher than those for fully covered units, which are typically older. This price difference raises concerns among residents, particularly as the vacancy rate for newly built units has increased by 2%. In contrast, the vacancy rate for fully covered units has decreased from 5% to 4%. Committee members acknowledged that it often takes one to two years for new complexes to fully lease their units, suggesting that the current vacancy rate may not be alarming but warrants ongoing monitoring.

The committee also highlighted the low vacancy rate for three-bedroom apartments, indicating a challenge in accommodating families within the community. This situation raises questions about the availability of suitable housing for families, as they typically prefer larger units.

Concerns were expressed regarding the potential for rent increases, as the number of bank rent increases has risen from 143 last year to 266 this year. This trend could lead to rent hikes that exceed the Consumer Price Index (CPI), which is a point of worry for committee members.

Additionally, the committee noted that there have been no capital improvement petitions submitted, suggesting that landlords may not be investing in the long-term maintenance of their properties. This lack of investment was described as a serious warning sign for the state of housing in Mountain View.

The meeting concluded without further comments from members, emphasizing the need for continued vigilance regarding the local rental market's dynamics and the implications for residents.