Market Report
Sacramento Multifamily Market Report
1Q 2026
Diverging Fundamentals Between City
and the Suburbs Add Nuance to the Outlook
Central Sacramento poised for a rebound in renter demand. Sacramento recorded historic levels of apartment deliveries in 2023 and 2024, but this year’s total is projected at roughly half of the 2024 peak. The California state government’s return-to-office mandate has been officially delayed until July 2026, a decision that has kept vacancy rates elevated in central Sacramento. As of late 2025, vacancy hovered around 7 percent here. That prompted concessionary offers on about half of all leases and contributed to year-over-year rent declines across quality tiers. If the policy takes effect as planned, however, central Sacramento could see a surge in apartment demand this year, benefiting recent and upcoming completions in the area. This year’s openings will be concentrated in the CBD and along the Interstate 80 Corridor, including Natomas and Roseville-Rocklin, where vacancy rates have been stable at around 4 percent and 3 percent, respectively.
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