RECORD INVESTMENTS AS OCCUPANCY REMAINS HIGH AND RENT GROWTH CONTINUES

As Sacramento’s apartment market marches toward its fourth straight year at or above 96 percent occupancy, the pace of rent growth has diminished but continues to keep investors and developers feeling bullish. The volume of transactions in Q1 narrowly edged out the previous record from Q2 of 2016, claiming the highest total in a single quarter all the way back to 1990. Developers are catering to a new demographic, trying to balance lifestyle and affordability to meet the demand of a growing population. As both capital and residents continue to flow in from outside the market, both renters and buyers can expect competition to continue driving up the cost of doing business in Sacramento. However, affordability versus the Bay Area makes Sacramento an attractive option.