Finally some relief: Why rents in ‘Zoomtowns’ like Sacramento are beginning to go down

Rents in Sacramento have finally begun to stabilize. Some experts describe it as a cool down after two years of wild increases. Others say that what we’re seeing here and in other similar markets is probably closer to a “correction” as migration patterns begin to shift.

Sacramento’s rental market took off during the height of the COVID-19 pandemic, posting some of the largest increases in the nation. But just like the region’s real estate market, the rental market has experienced a major temperature change.

The average rent in Sacramento dipped again in October over the previous month, a trend being seen in 89 of the country’s 100 largest cities, according to new research by Apartment List. Rents are still 1.2% higher on average than they were at this time last year. However, that increase is a far cry from the 16% increase the city saw in 2021.

Other cities in the region are seeing similar figures, according to Apartment List. The average rent in Roseville is down roughly 4% over the past year. Rents in Rocklin are down 3% and have fallen 1% in Citrus Heights, but have gone up about 2% in Folsom since this time last year.

Many COVID-era hotbeds and “Zoomtowns” — regions where migration picked up as people fled more expensive coastal markets — have seen rents begin to stabilize. Phoenix, Riverside and Las Vegas have all seen average rents either level off over the past six months or decrease.

“In many metro areas, declining prices are actually a correction to prices that’d become overly inflated,” Anthemos Georgiades, CEO of national rental platform Zumper, wrote on his company’s blog. “We saw historic levels of migration throughout the pandemic, as people switched to working from home and re-imagined their living situations. Now — with a turbulent, unpredictable economy causing fear of recession — migrations are slowing, occupancy rates are falling and rent prices are following suit.”

According to Rent.com’s data, the average rent for a studio apartment in Sacramento stands at $1,999 a month, the same average price being charged last year. One-bedroom units cost $2,021 and two-bedroom residences run just over $2,300; both of those averages have dropped 3% since 2021.

The most expensive two-bedroom units in the region are found in Folsom, followed by Elk Grove and Rocklin. Some of the best deals can be found farther away from Sacramento in Lodi, Galt, Marysville and Auburn.

This story was originally published November 1, 2022 at 5:30 AM.