Rental Rates Still Increasing in Sacramento

Posted by Rick Delgado on Thursday, May 5th, 2016 at 10:50am.

Looks like rental rates for housing continue to climb in Sacramento, which means it's a good time for real estate investors.

According to Zumper, which is an apartment rental site, the monthly rate for a one-bedroom apartment in Sacramento is $960, which is a 10.3% increase from a year ago, and puts Sacramento's rents among the 25 highest in the United States.

In fact, Sacramento came in at No. 23 for cities tracked by Zumper.

Experts say the reasons for the rental increases include more people moving out of the suburbs and into more dense urban areas with condos and apartments. Additionally it looks like people are choosing to rent for longer periods of time than they were before.

Additionally in Sacramento, a lag in construction to keep pace with demand means less available apartments for rentors, which bumps up rental rates.

There also appears to be a spillover from extremely high rental rates in San Franciso, which is ranked as the most expensive in America at $3,500 for a single-bedroom condo.

However the number of renters in San Franciso is declining (a drop of 0.8% last month and a yearly growth of just 3%) due to the exorbitant cost of renting.

Yardi Matrix, another rental site, noted similar findings last month where Sacramento's year-over-year rental rates went up 10% through March, making it the third-highest in the United States behind only Seattle and Portland, where rents surged up by close to 12%.

Rick Delgado

Wonder what your home is worth in today's market? Quickly find out by clicking here. If you'd like help selling your home, please contact Rick Delgado today.

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