This may not come as a surprise to Sacramentans who are looking for a new place to rent or to those who have been paying close attention to the area's rental market over the past few years.
According to a study by Yardi Matrix, the real estate research branch of the software company Yardi Systems, Sacramento is the fastest-growing rental market in the nation with a year-over-year growth of 11.9 percent. The report cites a rising Millennial population, the Baby Boomer generation downsizing, reduced homeownership and employment growth as factors in the growing trend.
"Those factors have kept occupancy rates of stabilized properties extremely high across the country, near all-time highs of 95.9 percent as of July," the report stated.
Sacramento's occupancy rate in 2015 was 97.4 percent, according to Appfolio, and, like the national rate, is over 95 percent in 2016.
According to the report, San Francisco's already high rent, which saw a 12 percent growth in 2015, only saw a 1.6 percent year-over-year growth in 2016. But despite the small growth in San Francisco, and the fast growth in Sacramento, current rental prices are not quite the level in the Capitol City as they are in the Bay Area.
The median rent in Sacramento, according to data from zillow.com, reached $1,690 in September 2016. Meanwhile, expensive Bay Area cities like San Francisco and San Jose, saw median rent prices $3,399 and $3,508, respectively, in September.
Sacramento isn't the only local area seeing a rise in rental prices, though. In Stockton and Modesto, median prices in September reached $1,518 and $1,339, respectively. And if trends remain steady, prices could continue to rise.
"As fundamentals in most of the country remain healthy, metros that have not gotten ahead of themselves should continue to see moderate to strong gains," the Yardi Matrix report stated.