Home Front: Rents up slightly in capital region

If you're a renter, there's no better place to be than in metropolitan Sacramento.

Pity, indeed, your rent-paying friends in San Francisco and San Jose. If the pace of summer's increases continues, they could be paying rent that's 13 percent higher this year than last. It's even worse for renters in Salt Lake City, and not so hot for folks in Portland and Seattle, where hefty increase were the norm.

But here in the capital region, those steep boosts didn't happen at most large apartment communities in the last quarter. Rents in July, August and September were up only about 1.4 percent over last year. They came in higher in Yuba and Sutter counties, where average rents are up 4.6 percent over the same time last year.

That's according to Novato-based RealFacts, which publishes quarterly reports on rent prices across the West. Of the 24 California metro areas it surveys, Sacramento comes in a pleasant 20th for rent hikes.

Naturally, what's good for renters isn't so hot for owners of rental property. Nor are flat rents sparking much interest from investors to buy Sacramento-area complexes.

For apartment owners, it's the same problem they've faced over the past four years: There's more supply than demand.

"People would like to raise their rents, but I see a lot of people playing these concession wars," says Joe Treat, a longtime watcher of the region's apartment market while working at For Rent magazine.

He's now producing After 55, a free publication that advertises rentals and homes for those ages 55 and older. Treat's prediction: Renters are likely to have it good for the foreseeable future.

"We're getting to the slower time of year," he says. "There tends to be less movement in the winter months."

As usual, the toughest local market for renters is where there's the most of them – in Davis. The city's average monthly rent of $1,293 reflects its 97.7 percent occupancy rate. In other words: There's plenty of demand for its limited supply.

West Sacramento is the opposite. Its third-quarter occupancy rate was 82.3 percent, a reflection of hundreds of new apartments that have yet to fill up. The average monthly rent there was $773.

RealFacts surveyed 391 Sacramento-area rental complexes containing a total of more than 75,000 apartments.

Built-in pride

What mother isn't proud of her sons, especially when they win awards?

Peggy Grenz feels that way about her boys – two custom home builders recently honored in the 2007 North State Building Industry Association Home Tour.

They're Jeff Grenz of Sacramento-based Bredian Homes Inc. and Chris Grenz of Orangevale's Grenz Homes Inc. Bredian won best of category and best master suite for homes under $1.6 million. Grenz won best elevation and best kitchen.

Both are grandsons of Emil E. Grenz, who began building Sacramento houses in 1939 after moving his family from North Dakota. Their father is the late Ray Grenz, a custom builder who died in 2005 after working all day at one of his sons' building sites.

"He's probably sitting up there right now reading The Bee and rejoicing that his two sons were so honored this week," she said in an e-mail.

Condos on the block

The 2007 home auction train continues rollin', as 50 Elk Grove condos go up for bid next month.

Bidding on the Laguna Oaks condominiums will open at 1 p.m. on Nov. 4 at the Sheraton Grand Hotel in downtown Sacramento. The auction is being run by Beverly Hills-based Kennedy Wilson Auction Group.

Laguna Oaks is a condo conversion project that opened models in June 2005 just before the real estate market ran out of sizzle. Months ago "For Rent" signs appeared at the former apartment complex, which now features condos with fireplaces, private garages and one-, two- and three-bedroom floor plans.

Original sales prices for the condos ranged as high as $261,000, according to homebuilding industry tracker Hanley Wood Market Intelligence of Costa Mesa. Next month, opening bids are set to start at $95,000.

Buying from a builder?

Home buyers might take a look at new tips from Kiplinger's Personal Finance magazine "on how to take advantage of home builders' woes." Here's what its November issue recommends:

• Learn how far you can push. Hire a real estate agent to help identify new-home prospects and to frame and negotiate your offer.

• Measure those incentives. Builders' perks usually come with a hitch that you use their mortgage subsidiary or affiliated lender. Be sure to compare that lender's deal with what you might find elsewhere.

• Check out the builder. Ask friends for referrals and rely on your agent's experience to find builders with good reputations.

About the writer:

• The Bee's Jim Wasserman can be reached at (916) 321-1102 or jwasserman@sacbee.com.