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Sacramento Navigates Slowing Supply and
Demand Growth Amid Shifting Submarket Trends
Construction declines after a historic year. Sacramento’s apartment openings reached a peak in 2024 with over 3,000 units completed. This comes after three consecutive years of elevated activity averaging more than 2,000 units annually — a pace not seen since the early 2000s. While deliveries are expected to slow in 2025, the effects of oversupply remain concentrated in the city’s core. At the same time, Sacramento is projected to lead major California metros in number of jobs created this year, though gains are moderating and white-collar employment is set to decline for a fourth consecutive year. As a result, apartment demand growth will soften, pushing vacancies higher and keeping rent increases subdued.