| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 87th | Best |
| Demographics | 39th | Poor |
| Amenities | 70th | Good |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 656 San Pedro Ln, Morgan Hill, CA, 95037, US |
| Region / Metro | Morgan Hill |
| Year of Construction | 1988 |
| Units | 65 |
| Transaction Date | 1998-11-02 |
| Transaction Price | $328,000 |
| Buyer | LAS CASAS DE SAN PEDRO LLC |
| Seller | 109 MILEST |
656 San Pedro Ln Morgan Hill Multifamily Investment
Neighborhood occupancy is strong and ownership costs are elevated, supporting renter demand and retention around the asset, according to WDSuite’s CRE market data. This positions the property for stable cash flow in a Silicon Valley-adjacent community where leasing remains resilient at the neighborhood level.
Morgan Hill’s inner-suburban setting offers daily-life convenience with solid access to groceries, pharmacies, and dining, while parks are limited nearby. Neighborhood occupancy is in the top quartile nationally, indicating stable leasing conditions for comparable properties in the area (this figure reflects neighborhood occupancy, not the property itself).
Within a 3-mile radius, population grew in recent years and household counts also increased, expanding the local tenant base; projections point to a modest population dip alongside a notable rise in households, which suggests smaller household sizes and continued demand for rental units rather than new unit construction. High median incomes in the 3-mile area, together with a rent-to-income profile that generally supports retention, provide a backdrop for steady leasing and measured pricing power.
Home values in the neighborhood are elevated relative to national norms, and the value-to-income ratio sits near the high end nationally. For investors, that high-cost ownership market tends to reinforce reliance on multifamily housing, sustaining depth of demand even as ownership remains aspirational for many households.
Amenities rate competitively versus many U.S. neighborhoods, but average school ratings are low locally; that dynamic may influence family-oriented renter preferences and unit mix strategy. Still, proximity to South Bay employment corridors and a renter-occupied share near 30% within 3 miles indicate a durable—if more selective—tenant pool for well-managed communities.
Neighborhood safety benchmarks compare slightly better than the national average overall. Property-related offenses track in the stronger (safer) end of national comparisons, while violent offense measures are also better than average nationally. Recent year-over-year trends show some fluctuation, so prudent operators should continue to monitor local patterns as part of ongoing risk management.
Conditions vary by block and over time; investors should consider typical multifamily practices such as lighting, access control, and resident screening to support retention and stability alongside the area’s generally favorable comparisons.
The regional employment base includes large technology and software employers within commuting range, which supports renter demand and lease stability for workforce and professional households. Notable nearby employers include IBM, eBay, Adobe, Netflix, and PayPal.
- IBM Silicon Valley Lab — technology R&D (7.8 miles)
- eBay — e-commerce & technology (19.8 miles) — HQ
- Adobe Systems — software (20.0 miles)
- Netflix — streaming & media (20.2 miles) — HQ
- PayPal Holdings — fintech (23.3 miles) — HQ
Built in 1988 with 65 units, the property offers scale for professional management in a high-cost homeownership market. Neighborhood occupancy trends sit in the top quartile nationally and, based on CRE market data from WDSuite, local renter demand is supported by elevated home values, strong incomes within 3 miles, and commuting access to major South Bay employers. The vintage suggests targeted capital planning or value-add improvements may enhance competitive positioning against slightly newer stock in the area.
Forward-looking demographics within 3 miles point to a larger number of households even if population growth moderates, implying a stable or expanding renter base. Near-term risks include weaker local school ratings and limited park access, plus normal cycle sensitivity in tech-oriented employment; however, the combination of high ownership costs, manageable rent-to-income dynamics, and sustained leasing performance at the neighborhood level underpins a durable long-term thesis.
- Strong neighborhood occupancy supports cash flow stability
- High-cost ownership market reinforces multifamily demand
- 1988 vintage offers value-add and CapEx optimization potential
- 3-mile income depth and employer access bolster pricing power
- Risks: lower school ratings, limited parks, and tech-cycle exposure