Sacramento Multifamily Market
Net Absorption Rallied in the Spring, Still Trending
Below New Supply and Seasonal Norms
Apartment demand returned to positive territory. Net absorption from April through June 2023 measured at roughly 600 units in Sacramento, the market’s first positive quarterly reading since 2021. While this was an encouraging sign after the metric totaled negative 2,850 units across the prior five quarters, the springtime is traditionally a strong period for demand and the recent improvement still trailed historic averages. The long-term mean for second quarter apartment absorption in Sacramento is about 820 rentals, roughly 35 percent above 2023’s tally. This indication of soft demand, with record amounts of supply scheduled to deliver during the second half, raises some concern. Vacancy elevation in the coming quarters will curb local rent growth as operators likely prioritize lease renewals at relatively modest adjustments, helping limit turnover costs.