Business & Real Estate

Sacramento rent growth outpaces national average in the last year, as Folsom costs jump

These are some of the issues behind California’s housing crisis

California's housing crisis is due in large part to a lack of supply, particularly when it comes to affordable housing, and it is hitting low-income individuals the hardest.
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California's housing crisis is due in large part to a lack of supply, particularly when it comes to affordable housing, and it is hitting low-income individuals the hardest.

Rents in Sacramento grew moderately in the past year, outpacing national trends with a year-over-year growth rate of 4.1 percent and a month-over-month growth rate of two-tenths of a percent, bringing the city’s average rent to $1,401, according to RentCafe’s most recent monthly report.

RentCafe, an online real estate service and apartment listing marketplace, analyzed nationwide housing data from the month of July using the Yardi Matrix and found that average rents in Sacramento grew faster in the last year than the U.S. average, although rent in the California capital is still cheaper.

Nationwide, the average monthly cost of rent was $1,469 as of July, an increase of 3.4 percent in the last year — a bit under Sacramento’s growth rate — and 0.2 percent in the last month, which matched Sacramento’s month-over-month growth rate, according to the report.

Some pricey Sacramento suburbs saw sharp rent increases in the last month, such as Folsom — which saw the sharpest monthly price spike in the area — where the average monthly rent of $1,873 increased by 1.5 percent, Rocklin, where the average monthly rent of $1,718 increased by 1.2 percent and Roseville, where the average monthly rent of $1,790 increased by 0.9 percent, according to RentCafe.

Elk Grove’s rent costs averaged $1,753 and grew a full percentage point in the past month, while Rancho Cordova’s rent costs averaged $1,396 and grew 0.6 percent in the past month, according to the report.

Other suburbs remained relatively affordable. Rents in Carmichael average $1,205 and grew by 0.5 percent in the last month, while rents in Citrus Heights average $1,342 and grew by 0.2 percent in the last month and rents in Fair Oaks average $1,440 and grew 0.3 percent in the last month, according to RentCafe.

Davis is the most expensive place in the region to rent in, according to RentCafe, and although housing costs increased by just $2 in the past month, the average monthly rent in the Yolo County city is $2,169 — though that still beats out Bay Area prices.

San Francisco, one of the most expensive cities in the country, has an average monthly rent of $3,706, an increase of fourth-tenths of a percent from last month, while in San Jose renters can expect to pay $2,792 per month, according to the report. The only place more expensive than San Francisco is Manhattan, where renters pay $4,222 monthly on average.

California’s Central Valley tended to see cheaper rents. Visalia, though relatively affordable with an average monthly rent of $1,131, saw a monthly increase of 1.1 percent and renters in Stockton, who pay $1,191 on average, saw an increase of 0.8 percent. Modesto’s average rent of $1,223 increased by 0.7 percent in the past month, while Fresno’s average of $1,088 bumped up slightly by 0.4 percent in the past month, according to RentCafe.

The cheapest place to rent in California is Madera, where rent costs $908 per month on average, according to the report, while Wichita, Kansas, is the cheapest city in the country, where apartments cost $660 per month.

You can see RentCafe’s full national data set here and its California Central Valley data set here.

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Vincent Moleski covers business and breaking news for The Bee and is a graduate student in literature at Sacramento State. He was born and raised in Sacramento and previously wrote for the university’s student newspaper, the State Hornet.
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