Central Valley Market Report
Central Valley Apartment Vacancy Reaches Record Low; Region Positioned for Potential Spike in Sales
Unit availability rests well below California’s average. The Central Valley’s apartment sector has displayed signs of strength throughout the health crisis as economic volatility and remote working arrangements have heightened household demand for lower-cost rentals. During the past six months ended in September, regional Class B and C vacancy rates compressed into the low-3 percent range, supporting rent growth of approximately 3 percent and 2 percent, respectively. Absorption has been strongest in Fresno County during the pandemic, while leasing velocity in San Joaquin County has benefited from the market’s proximity to the East Bay. Overall, five Central Valley counties recorded vacancy compression from April to September, with unit availability unchanged in two additional markets. Tight conditions throughout should provide a foundation for rising rents across the region in the coming quarters.