FUNDAMENTALS HOLD STEADY AS INVESTMENT AND DEVELOPMENT KICK INTO HIGH GEAR
As 2017 came to a close, the Sacramento multifamily residential market seems ready for another monumental year of growth. Investors see the potential for continued rent growth, driving sales to exceed the volume we saw in 2016. The average cap rate for 2017 fell below pre-recession levels, and the average price per unit reached an all-time high in Q4. In 2018, the Sacramento apartment market will receive a boost of new housing stock, nearly twice as many new units as the total for 2017, which will push top-of-market rents further than we’ve seen so far. Though rents dipped slightly in Q4 from the record high in Q3, we expect Sacramento will maintain its position as a leading rent-growth market.