California State Fair back in Sacramento
Sacramento isn’t keeping up with the demand for apartment units even as more people flood into the area.
Apartment construction is at a 20-year high in the U.S., due to most of the nation’s biggest cities seeing rapid growth in their rent stock, according to a new Rent Cafe report.
Sacramento is seeing the fastest rising rent in the nation and an influx of people, primarily from the Bay Area, moving to the region in search of more affordable metro living. However, despite the rapid growth and nationwide apartment boom, the Sacramento region is among the worst markets in the country for apartment construction.
There are only 738 new units in large-scale developments expected to be completed this year, according to data provided by Yardi Matrix, a sister division of Rent Cafe.
This makes it the second worst large metro for apartment construction in nation. New Orleans tops the list for the worst metro for apartment construction with only 501 units expected to be delivered this year.
So far this year, the Sacramento region has gained nearly 29,000 new residents, a 1.3 percent increase from last year. The number of new apartment units available is simply not sustainable for the movement happening in the area. This is one of the reasons why rent in Sacramento has been skyrocketing.
It recently hit $1,325, up 8.4 percent according to the report.
The Sacramento area is also seeing a high occupancy rate at 96.7 percent, making the need for apartment construction even greater.
While it’s easy to blame…