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Market Report

Sacramento Multifamily Market Report

1Q 2021

Sacramento Remains Among Nation’s Tightest Rental Markets, Aided by Accelerated Trends

Suburban vacancy plummets. One of the nation’s top performing rental markets prior to the health crisis, Sacramento has benefited from pandemic-driven migration and remote working arrangements. Bay Area-based tech workers and other households seeking larger living spaces and lower housing costs have relocated to the metro, bolstering the market’s apartment fundamentals. Demand for suburban units has been strong, namely in areas east of the urban core off Interstate 80 and Highway 50. Each submarket in this portion of the metro registered vacancy compressions greater than 100 basis points last year, dropping the local vacancy rates below 3 percent and driving rents higher. Availability in these eight submarkets is positioned to remain extremely limited as near-term supply additions are minimal in these locales.
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