Sacramento Posts Strong Apartment Performance
Sacramento is performing better than most apartment markets across the nation. Occupancy reached 97.4% in September, an 18-year high for the market. Among the nation’s 50 largest apartment markets, only Riverside, Providence and Virginia Beach performed better. The last time occupancy was this tight in Sacramento was back in 2nd quarter 2002. Occupancy in Sacramento is now more than 100 basis points (bps) ahead of the market’s five-year average of 96.3%. Rent growth in Sacramento is also solid, climbing to 4.8% in the year-ending September. While that rate is down from the market’s five-year norm of 6.9%, it is still one of the strongest readings in the nation. Only Riverside posted more rent growth in September. One factor helping Sacramento maintain stability in uncertain times is the relative affordability of the market. Apartment rents here average $1,577 per month, one of the least expensive major markets in California, and well behind the rates in the nearby Bay Area markets.