We continue to see steep rent increases quarter-over-quarter here in Sacramento, despite the national trend flattening out.
SACRAMENTO, Calif. (PRWEB) October 17, 2017
Sacramento property management company Real Property Management SAC-METRO today released their regular “Rental Statistics Report” on the Sacramento rental market in partnership with RentRange. Rental rates continue to increase around the area at a higher rate than seen nationally.
The quarterly Rental Statistics Report found that the average monthly rent for single-family homes in Sacramento was now $1748, representing a 9.1% percent year-over-year increase. This jump is out of sync with the national trend elsewhere around the country, where year-over-year rent increases for siangle family three-bedroom homes has moderated significantly. The current national increase was 1.7%. In comparison, at the end of last quarter, the increase was 2% and a year ago at this time, the increase was 6.4%.
Nationally, rental rate increases are finally below wage growth. From January 2017 through June of 2017 wage growth averaged 3.4% according to the Federal Reserve Bank of Atlanta. The data used rents on three-bedroom single-family homes only to insure comparability across markets. But such is not the case in the Sacramento area.
“We continue to see steep increases quarter-over-quarter here in Sacramento, despite the national trend flattening out,” reports Stewart Guthrie, President of Real Property Management SAC-METRO, “Our clients and tenants are seeing rents continue to rise in the single-family home market, and vacancies are edging up slightly.”
Sacramento area vacancy rates (the percentage of homes considered unoccupied), rose from 4.1% to 6.3% percent through the second quarter. This represents a 2.2% percent increase since last year at this time. Nationally, vacancy rates have stabilized at 4.9% for two quarters in a row. In comparison, the national vacancy rate a year ago was 5.5.
The report also analyzed the saturation rate in Sacramento. This is the estimated percentage of rented single-family homes as a share of all single-family homes. Results showed that in the Sacramento area, 25.6% of single-family homes are rented. This is on par with the national trend, where rentals represent 23.8% of three-bedroom single family homes, the same as a year ago.
Guthrie explains: “We expected to see rental rates rise with this report. Yet, it is interesting to see vacancies rising slightly as well, which may indicate a growing affordability gap. It is too early to say without another quarter of data to validate. We do expect that our market will begin to even out, but at a slower pace. It may be some time before we see rents stabilize here in Sacramento in line with the national trend.”
Real Property Management and RentRange have an ongoing strategic business relationship to share proprietary rental housing data in order to provide landlord customers and the public with accurate, current information about local rental properties and rental markets. Real Property Management SAC-METRO provides full-service residential property management for Sacramento area real estate investors and rental home owners, see Rent916.com. RentRange is the nation’s leading provider of Rental Market Intelligence™ to the financial services and real estate industries, see Rentrange.com.