Rents are Rising Faster in Sacramento than in rest of California
In July, the real estate firm Yardi Matrix analyzed trends across California, and found rents are rising faster in Sacramento and the Central Valley than any other part of the state. Rents in San Francisco and Silicon Valley are continuing to soar as well, and data suggests rising costs in major metropolitan areas are driving people out to search for cheaper living elsewhere, such as Sacramento. San Francisco is ranked as the most expensive market, with average monthly rents at $2,941, and the Central Valley is the cheapest, with average rents at $985 per month. The average monthly rents in Sacramento in July were at $1,364 per month. Doug Ressler, director of business intelligence for Yardi Matrix, stated:
The current economics of supply and demand in the Sacramento market favor property owners and not the renter. Limited supply and demand continue to increase rental rates.
Sacramento’s rental market had the biggest year-over-year increase compared to all other markets across the country, and throughout California. The firm projected rents continuing to increase throughout 2017. For example, the firm is projecting that the rents in Sacramento will increase 9.9 percent between June 2016 and June 2017. Behind Sacramento, Seattle came in second as the area with the fastest-growing rents, followed by California’s Inland Empire, Orlando, Los Angeles and Las Vegas. A solution is definitely needed to fix the housing crisis before all of California becomes unaffordable for its residents.