Sacramento Multifamily Report – December 2024
California's capital displayed high demand while national figures slid.
Sacramento displayed improving fundamentals in 2024, exceeding national averages. Average advertised asking rents rose 1.6 percent year-over-year through October, to $1,954, almost double the 0.9 percent U.S. rate. The occupancy rate in stabilized properties increased a strong 70 basis points year-over-year, to 95.3 percent in October. Meanwhile, the average U.S. occupancy figure slid 10 basis points, to 94.7 percent.
Employment growth ebbed and flowed in 2024 in Sacramento, but stayed above the 1.4 percent U.S. average, at 2.4 percent as of August. The metro gained 22,500 net jobs in the 12 months ending in August. Even so, most sectors lost jobs, with the steepest contractions recorded in leisure and hospitality (-2,100 jobs), information (-1,100) and manufacturing (-1,000). Education and health services (17,200 jobs) and government (7,000 jobs) led job gains. Unemployment stood at 4.7 percent in September, outperforming the 5.3 percent state rate, but trailed the U.S. (4.1 percent). One notable project underway in Sacramento is The Railyards, which this year had a senior housing component delivered. The 244-acre project also includes a Major League Soccer stadium that is slated to open in 2027.
Developers completed 2,333 units in the area in 2024 through October and had an additional 8,534 apartments under construction. During this period, investors traded $250 million in multifamily assets, surpassing last year’s total. The price per unit increased 12.6 percent year-to-date, to $194,100.
