Published by M&M Properties | Sacramento, CA

The Sacramento rental market is showing signs of moderate growth and relative stability this spring. A combination of steady job growth, ongoing population influx, and constrained housing supply continues to shape rental dynamics across the region.

Current Market Snapshot

• Average Rent: $1,650/month. Rental prices range widely from as low as $550 to as high as $11,500, depending on property type and location.

• Year-over-Year Change: Rents have decreased by about $245 compared to May 2024.

• Month-over-Month Change: A small decline of $17 from April to May 2025.

• Vacancy Rates: Still low, reflecting solid demand for rental housing.

• Available Inventory: Around 2,000 rental units are currently on the market in the Sacramento area.

What’s Driving the Market?

1. A Strong Job Market

Sacramento’s diverse economy and continued job creation make it an attractive destination for new residents, increasing demand for rentals.

2. Limited Housing Supply

While construction is underway in many areas, it’s not keeping up with demand, helping maintain tight vacancy rates.

3. Economic Conditions

Wider economic trends, including inflation and interest rates, are influencing affordability and market behavior.

Looking Ahead: What to Expect

• Moderate Rent Growth: Forecasts suggest continued but modest increases in rent through the rest of 2025.

• Ongoing Competition: Due to strong demand and limited vacancies, the market remains competitive, especially in central neighborhoods.

• Affordability Trends: Renters are increasingly prioritizing value. High-end units may see slower growth as more people seek budget-friendly options.

Neighborhood Highlights

1. Most Affordable Areas:

• Parkway–South Sacramento
• Florin
• Del Paso Manor
• Average rents here range from $1,402 to $1,453/month.

2. Most Expensive Areas:

• R Street Historic District
• Poverty Ridge Historic District
• River Terrace
• These neighborhoods have average rents over $2,500/month.

3. Highest Availability:

• Downtown Sacramento
• North Sacramento
• Arden/Arcade
• These areas currently have the most listings available for renters.

Conclusion

The Sacramento rental landscape remains balanced, with renters facing both opportunities and challenges. While there’s a broad range of options across various price points, affordability and competition remain central concerns.

If you’re a renter or investor navigating this evolving market, staying informed is key, and M&M Properties is here to help you every step of the way.

Contact Us:
M&M Properties
1545 River Park Drive, Suite #100
Sacramento, CA
📞 916.500.8188 | DRE #01100901

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