As of December 2025, the average rent in Gilroy, California has reached $2,000 per month, marking a 2.1 percent increase over the past year. That rise may appear moderate at first glance, but Gilroy now sits 23 percent above the national average rent, placing the city among the more expensive rental markets in the country.
The data signals a steady upward trend that is reshaping affordability across South Santa Clara County as demand continues to outpace available inventory.
Average Gilroy Rent by Apartment Size
Rent prices vary significantly by unit type, but every category remains elevated compared to historical norms.
• Studio: $1,518 per month, average size 400 sq ft
• One-Bedroom: $2,000 per month, average size 633 sq ft
• Two-Bedroom: $2,344 per month, average size 798 sq ft
• Three-Bedroom: $2,424 per month, average size 736 sq ft
One-bedroom units now anchor the Gilroy market, with most renters paying close to or above the $2,000 threshold.
Where Most Gilroy Renters Are Paying
Current rent distribution shows that pricing pressure is expanding upward.
• 38 percent of rentals fall between $1,001 and $1,500
• 24 percent fall between $1,501 and $2,000
• 32 percent are now priced above $2,000
• Only 6 percent remain between $700 and $1,000
• Rents below $700 are essentially nonexistent
This confirms that Gilroy is rapidly shifting from a mid-range rental market into a high-cost rental zone.
Rent Growth Over the Past Year
Over the last 12 months, Gilroy rents rose by 2.1 percent, equal to an average increase of about $42 per month per renter. While that growth rate is slower than some high-volatility urban cores, it reflects a market that is still climbing rather than cooling.
Quarterly rent performance through 2025 remained consistently elevated, with pricing staying near the $2,000 level throughout the second half of the year.
How Much Income Is Needed to Rent in Gilroy
With the average rent at $2,000 per month, renters following the 30 percent income guideline must earn approximately:
• $6,666 per month
• $79,992 per year
This places Gilroy above affordability thresholds for many service workers and entry-level professionals, increasing pressure on shared housing, roommate arrangements, and migration toward outer South Bay markets.
Inventory Snapshot
Gilroy currently has 232 active apartments available for rent, a level that remains tight relative to demand. Limited availability continues to support higher pricing and contributes to competitive leasing activity across newer developments and professionally managed properties.
Market Outlook Into 2026
While rent growth has moderated from the post-pandemic surge, the Gilroy rental market remains under sustained upward pressure due to:
• Ongoing population spillover from Silicon Valley
• Limited new multifamily inventory
• Strong employment stability in the South Bay
• Rising home prices pushing more households into long-term renting
Unless significant new supply enters the market, Gilroy rents are expected to remain elevated through 2026.
Comments 2