Sacramento Multifamily Market Report
Sacramento Registering Record Rent Growth; Construction Coming to Downtown in 2022
Most parts of Sacramento experiencing strong renter demand. Despite the ongoing health crisis, apartment fundamentals are steadily advancing across the market. Vacancy in June was at its lowest level in nearly two decades, fostering record annual rent growth of nearly 13 percent. As more jobs are added back, especially in the hard-hit leisure and hospitality sector, new households are forming. This is driving demand in some of Sacramento’s more affordable submarkets, including North Sacramento-North Highlands. Households not tied to daily commutes are looking in Roseville-Rocklin as well as the Folsom-Orangevale-Fair Oaks area, which includes part of Lake Tahoe. Davis, where the university closure prompted students to not renew leases, stands out as the main pocket of weakness. An anticipated return to full capacity in-person classes this fall should help improve fundamentals.