Market Insights

August 1, 2024

What's The Average Rent In Sacramento, CA

Zoe Harper

Marketing

The average rent in Sacramento, CA is now $1,678¹. It's gone up slightly by 0.7% in one month¹. Yet, it's down by 0.8% compared to last year¹. The city has seen rent grow by 2.5% in just half a year¹. As the 34th priciest large city in the U.S., Sacramento's rent is about 18.9% over the national average¹.

For more details, check out the full report.

Key Takeaways

The median rent in Sacramento, CA is currently $1,678¹.
Month-over-month, rent prices have risen by 0.7%¹.
Year-over-year, rent prices have decreased by 0.8%¹.
Sacramento’s rent growth over the first six months of 2024 is 2.5%¹.
Sacramento's median rent is 18.9% higher than the national average¹.

Understanding the Sacramento Rental Market

The Sacramento rental market is vibrant and full of different elements. It is known for changing often and includes many factors that make it complex. We will look at the recent trends and what influences rental prices in this area.

Current Market Trends

Recently, the Sacramento housing market showed interesting shifts. The current median rent is $1,678, which is higher than last year. The city is the 35th² highest in the U.S. for rent growth since June. This shows the market is very competitive, due to various factors like the economy and changes in who lives there.

The market for single-family homes in Sacramento is doing well. Sales volume went up 14% in March 2024 compared to February. The median sales price is now $550,000³. This shows the real estate in Sacramento is still attracting investors and people looking to rent.

Factors Influencing Rent Prices

Rent prices in Sacramento are influenced by many things. One major factor is the balance between demand and supply. Most households in Sacramento rent, which raises demand for rental properties². High demand, especially in up-and-coming areas like Oak Park, often leads to higher rents.

Economic conditions also play a big part in setting rental prices. Sectors like tech and healthcare bring people to Sacramento, increasing demand for homes. The median sale price for single-family homes in the county was $548,580 in April 2024. This shows a 6.5% rise from last year³. When home prices go up, so do rents, as property owners want to keep making money.

Changes in population and new housing developments also affect the market. Places like East Sacramento attract investors with their unique homes². Suburbs such as Elk Grove have grown a lot since the 2000s and are now good choices for both investing and renting². All these factors combine to shape the trends in Sacramento's housing market and how much rent costs throughout the city.

Why Sacramento's Rent is Higher than the National Average

Sacramento has a higher cost of living compared to the nation, affecting rent prices. The city's expenses are 19% above average, with housing a whopping 41% higher⁴. This makes the median rent in Sacramento around $2,000⁴.

Cost of Living Comparison

Comparing rent in Sacramento to the national average shows a big difference. The national median rent is slightly less. But, housing costs push Sacramento's expenses up. Wages in the San Joaquin Valley grew by 21.2% from 2010 to 2019. Yet, Sacramento's rent jumped by 69%⁵. On the other hand, the national rent went up by 36%⁵.

Housing Demand and Supply

Sacramento's housing demand adds to the high cost. Even with rent decreasing by $195 year-over-year and $51 monthly, living costs stay high for many⁴. A limited housing supply makes things worse. For instance, Tracy is adding 5,000 homes. But, Stockton and Modesto face shortages due to fewer building permits⁵. This drives rent up due to high demand and low supply.

Rent growth in Sacramento is faster than nearby areas. This demand leads to only 1,304 rentals available in Sacramento, making it tough for residents⁴.

To help, regulations and initiatives are in place. Yet, applying these solutions is hard because of limited funding and low awareness among the people. For more on how rents affect Sacramento, see this in-depth analysis ⁴.

Median Rent Prices for Different Property Types in Sacramento

Rent prices in Sacramento vary depending on the type of property. For starters, a studio in the Sacramento-Roseville-Folsom area costs about $1,201⁶. This price helps us understand the rental market better. A one-bedroom place has a median rent of $1,326. A two-bedroom goes for around $1,673⁶. As apartments get bigger, their costs rise.

Larger homes for families show this trend too. A three-bedroom home will set renters back $2,373 on average. For those needing more space, a four-bedroom house averages $2,845⁶. These prices show how choosing the right home is a big financial decision.

The median rent has been climbing in the Sacramento area. It went from $1,601 at 2021’s start to $1,856 by early 2022⁶. This rise fits into a bigger picture where living costs are up 7.9% across the US.

Renters face a heavy cost burden. In places like California, rent can eat up to 57% of your income⁷. It's critical to keep this in mind when looking at Sacramento’s housing market.

For detailed rent price trends, check the Greater Sacramento rental market report.

Yearly and Monthly Rent Growth in Sacramento

The rental market in Sacramento has changed a lot recently. Rent has gone up both over a year and each month. These rental market trends are due to many things affecting housing.

Year-Over-Year Rent Trends

In Sacramento, rent went up 2.5% in the first half of 2024. This was higher compared to a 0.9% increase in 2023¹. This shows people keep moving to the city despite the economy's ups and downs.

Back in 2019, the median monthly rent in Sacramento was $1,390. It grew +4.35% in one year and +19.93% in three years⁸. Rent has been going up steadily over time.

Monthly Rent Changes

June 2024 saw rents rise by 0.7%. This growth is big, especially compared to the national average⁹. Sacramento was 35th among big U.S. cities in rent growth, with a median rent of $1,678¹.

This source shows that Sacramento had a 2.76% vacancy rate in 2019. This means not many homes were available to rent⁹. Also, by 2019, people spent 21.75% of their income on rent, down from 22.31% in 2013⁸. This tells us how the market is changing and its impact on renters.

The continued rise in Sacramento rent growth shows a strong market that keeps changing. Looking at both yearly and monthly rent data gives us a full picture of the market.

The Impact of Sacramento's Economy on Rent Prices

Sacramento's economy has a big impact on how much it costs to rent a home. This is because of things like jobs and how many houses are available. Since the city is growing, rents go up too. Also, living here costs over 23% more than the rest of the US¹⁰. Jobs in government, construction, healthcare, and tech help keep the economy and housing market strong¹¹.

Last March, the average house sold for $453,000, which was 13% less than before¹¹. But, the economy is still getting stronger thanks to important industries. Now, a one-bedroom apartment costs $2,064 to rent, which is almost 22% more than last year¹⁰. This shows how a booming economy makes living expenses, like rent, go up.

Sacramento's living expenses, including homes, food, utilities, and getting around, are also higher than many places in the US¹⁰. The health of the housing market affects rents too¹¹. This is something renters should keep in mind. For tips on renting in Sacramento, check out this guide ¹⁰.

The strong economy in Sacramento is the main reason rents are going up. Growth in key job markets influences how much people pay for housing. This results in changing rent prices across the city.

Comparing Sacramento to Other Cities in the Metro Area

Sacramento's rental market is unique compared to nearby cities. Its median rent is about 5.1% lower than the area's average, which is $1,767¹. Living costs in Sacramento are key for those seeking a good lifestyle.

Most Expensive vs. Most Affordable Cities

In the Sacramento area, rent prices vary greatly. Rocklin is the priciest, with rents at $2,472. On the other hand, Citrus Heights is the most wallet-friendly with a median rent of $1,677¹. Citrus Heights offers the best deals for budget-conscious renters.

Rent Growth Rates Across the Metro Area

The metro area sees different rent growth rates. Rocklin tops the list with a 2.8% increase, showing high rental demand. Meanwhile, Sacramento's rents fell by 0.8% last year¹. These changes matter to those looking to rent or invest in properties.

What's The Average Rent In Sacramento, CA By Neighborhood?

In Sacramento, CA, the middle rent is $1,678¹. But, rent prices can be very different in each neighborhood. Downtown Sacramento, for example, has two-bedroom apartments averaging $3,720. This is much higher than in Greenhaven, where the same apartments cost $1,750.

The costliest part of the greater Sacramento area is Rocklin, with a median rent of $2,472. On the other end, Citrus Heights is the most wallet-friendly, with rent at $1,677¹. This shows there's a wide range of rent prices in Sacramento.

In spots like Midtown and East Sacramento, rents are high because of their top locations and features. Midtown is famous for its lively culture and eats, pushing rents up. Compared to this, places like North Highlands have lower rents.

The rent scenario in Sacramento is shaped by many economic factors. This makes for varied living costs. For example, a 1-bedroom apartment's median rent is $1,376. A 2-bedroom's median rent is $1,739¹.

It's important for people looking to rent in Sacramento to know these costs. Whether you want a cheap place or something close to downtown, Sacramento has options for all budgets.

Rent Prices for 1-Bedroom vs. 2-Bedroom Apartments in Sacramento

The Sacramento rental market offers different prices for various apartments. Prices for one-bedroom and two-bedroom units differ due to many reasons. These differences are influenced by key factors.

Cost Comparison

In Sacramento, one-bedroom apartments cost between $923 and $1,758¹². This variation depends on the area and what the apartment offers. On the other hand, two-bedroom apartments start at $1,083 and can reach up to $2,825¹². This shows a significant price jump.

Some studies present more affordable options. They show one-bedroom apartments ranging from $467 to $651. For two-bedrooms, the price is from $725 to $1,206¹³. This indicates that costs can vary across different areas.

The average cost for a one-bedroom in this city is $1,620. Finding apartments under $1,000 is rare; there are only 11 available¹⁴. This highlights the limited cheaper options in the Sacramento rental scene.

Factors Affecting Price Differences

The price difference between one-bedroom and two-bedroom apartments is due to a few factors. Bigger apartments like two-bedrooms, are more expensive. Also, the location affects the rent a lot¹². For instance, rent for a two-bedroom on Waterman Rd is $725. But on Elkhorn Blvd, it can go up to $1,206¹³.

Apartments with sought-after features like pools and modern kitchens have higher rents¹⁴. Market conditions and special deals from landlords also change rent prices. This makes finding affordable housing in Sacramento an ever-changing challenge.

How to Use Rent Calculators to Budget for Housing

Rent calculators are key for anyone planning to rent in Sacramento. They let you plug in your income, spending, and local costs for a total budget view. Sticking to the '30% Rule' helps figure out how much you can afford for rent without overdoing it¹⁵.

Adding to the '30% Rule' is the 50/20/30 guideline. It suggests splitting your income into needs, wants, and savings/debt. Rent calculators take into account your bills, like loans and utilities. This gives you a clear picture of both rent and other living costs in Sacramento¹⁵.

It's also smart to compare the rent costs in different cities. Rent in Sacramento is usually less than in Sunnyvale, CA. This comparison helps set clear budget goals¹⁶. Rent tools also factor in utilities and other expenses. They make finding the right place at the right price much easier.

FAQ

What’s the current average rent in Sacramento, CA?

Right now, the average rent in Sacramento, CA, is $1,678. This number has slightly gone up by 0.7% from last month. Yet, it's down by 0.8% from last year. When we look at the whole country, Sacramento's rent is 18.9% more expensive.

What are the current rental market trends in Sacramento?

The rental market in Sacramento is changing. The median rent is $1,678 now, with a recent 0.17% increase. Sacramento is ranked #35 among big U.S. cities for rent growth as of June. Changes in demand, the economy, and how many people move here affect rent prices.

Why are rent prices in Sacramento higher than the national average?

Living in Sacramento costs 19% more than the U.S. average. This is mostly because housing is 41% pricier here. More people wanting homes and not enough available makes rent go up.

How do median rent prices vary among different property types in Sacramento?

One-bedroom places in Sacramento cost about $1,376 to rent. For two bedrooms, the price goes up to $1,739 on average. This gives folks a way to compare prices for different types of homes.

How has Sacramento’s rent changed year-over-year and month-over-month?

Since June, rent in Sacramento has grown by 0.7%, showing a continued upward trend. Rent has gone up 2.5% in the first half of this year. That beats last year's increase of 0.9% for the same time frame.

How does Sacramento’s economy impact its rent prices?

Economic growth and stability in Sacramento directly impact rent prices. As the city's economy gets better, rent prices can go up or down. This is because of changes in how many homes are available and how many people want them.

How does Sacramento’s rent compare to other cities in the metro area?

The median rent in Sacramento is 5.1% less than the metro area's median of $1,767. For example, Rocklin has the highest rent, and Citrus Heights is the most affordable. Rent changes a lot depending on the city you look at in the metro area.

What are the average rents in different neighborhoods of Sacramento?

Rents in Sacramento's neighborhoods vary a lot. A two-bedroom in Downtown Sacramento costs $3,720 on average. But in Greenhaven, a similar place is much cheaper, around $1,750.

What’s the rent price difference between 1-bedroom and 2-bedroom apartments in Sacramento?

In Sacramento, renting a one-bedroom place costs an average of $1,376. But if you need two bedrooms, it jumps to $1,739. The difference comes from the size, location, and what amenities are available.

How can rent calculators help in budgeting for housing in Sacramento?

Rent calculators factor in Sacramento's specific living costs. They help people figure out their housing budget wisely. It's a key tool for planning and managing how much you spend on your home, based on your money situation.