Sacramento Multifamily Market Report
Local Class B and C Vacancy Rates Among Lowest Nationally;
Notable Inventory Growth Awaits CBD
First-ring suburbs reflect market strength. Demand for lower cost apartments is historically strong in Sacramento entering the second quarter. All five submarkets with an average effective rent of $1,500 to $1,800 per month are home to sub-2 percent vacancy, following compression of 50 to 140 basis points over the past 12 months ending this March. The metro’s above-average number of service and retail trade-related jobs relative to the total employment base is one driving factor behind rental demand in these locales, which feature sizable inventories of Class B and C complexes. Across Arden-Arcade, Carmichael, Citrus Heights, Rancho Cordova-East Sacramento and Woodland-West Sacramento, just 350 units are slated for delivery this year, suggesting tight conditions will remain in the coming quarters.