Sacramento Multifamily Report – March 2025
The market slowed slightly after steady 2024 performance.
Sacramento multifamily fundamentals were treading water at the start of 2025, in line with seasonal patterns. This came on the heels of a year when fundamentals outperformed national averages. Average advertised asking rents fell 0.3 percent on a trailing three-month basis through January, to $1,941, marking the first drop in 12 months. Moreover, asking rents were up 1.0 percent year-over-year, slightly above the 0.8 percent U.S. rate. Meanwhile, occupancy in stabilized properties rose 30 basis points year-over-year, to 95.0 percent as of January.
Job growth decelerated in Sacramento, at 1.8 percent as of November 2024, but remained above the 1.3 percent U.S. rate. California’s capital gained 9,000 net jobs over 12 months, sustained by education and health services, which added 13,400 jobs. Six sectors shed 9,900 jobs combined, with the largest losses recorded in mining, logging and construction (-4,700 jobs). Meanwhile, unemployment ended the year at 4.6 percent, lagging the 4.1 percent U.S. rate, but outperforming the 5.5 percent state rate. Aggie Square, a mixed-use district developed by a public-private partnership, is bringing a new hub for life sciences, education, student housing and parking to the UC Davis campus.
Sacramento supply volume marked one of its best years in 2024 and started 2025 with an additional 8,993 units underway. Transaction activity posted a minor rebound in 2024, to $454 million, but still trailed historic figures.
