Sacramento Multifamily Report – July 2025
While stumbling, this rental market is far from falling.
Sacramento average advertised asking rents were down 0.1 percent, on a T3 basis as of May, to $1,947, lagging the national figure by 40 basis points. This marked a 10-basis-point improvement from the previous month. The average overall occupancy rate in stabilized properties was down 10 basis points year-over-year, to 94.9 percent as of April, but remained above the 94.4 percent national figure.
Employment in Sacramento continued to soften, at 0.9 percent year-over-year through March, on par with the U.S. figure. With performance spotty across sectors, education and health services led growth, with 9,900 positions added to the workforce. The area’s unemployment rate stood at 4.4 percent as of April. The figure was 20 basis points above the U.S. rate, according to preliminary data from the Bureau of Labor Statistics. Sacramento’s economy could get a boost from the development of the 12,000-seat Republic FC soccer stadium. A financing plan has been approved for the $321 million project, which is set to break ground this year, with completion slated for 2027.
Developers delivered 1,149 units through May, representing 0.8 percent of stock and below the 1.0 percent national rate. Although no new construction starts were recorded in the first five months of 2025, 7,108 units were under construction in May. A total of $371 million in assets traded year-to-date through May, some $92 million short of 2024’s entire volume, signaling an uptick in activity.
