Market Performance Shows Momentum
Sacramento displayed improving fundamentals in 2024, exceeding national averages,according to the latest Yardi Matrix Sacramento multifamily market report. Average advertised asking rents rose 1.6% year-over-year through October, to $1,954, almost double the 0.9% U.S. rate. The occupancy rate in stabilized properties increased a strong 70 basis points year-over-year, to 95.3%, in October. Meanwhile, the average U.S. occupancy figure slid 10 basis points, to 94.7%, as report in the national multifamily market report.
Employment growth ebbed and flowed in 2024 in Sacramento, but stayed above the 1.4% U.S. average, at 2.4% 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% in September, outperforming the 5.3% state rate, but trailed the U.S. (4.1%). 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% year-to-date, to $194,100.
Read the full Yardi Matrix Sacramento Multifamily Market Report: December 2024
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