Multifamily sector remains strong in San Francisco and Sacramento

The multifamily sector remains strong in San Francisco and Sacramento, according to Yardi Matrix’s San Francisco and Sacramento multifamily metro outlooks reports.

San Francisco’s booming economy, driven by its education and health services sector, is upholding a healthy housing demand. The tight multifamily market has spurred constant rent gains, pushing a 2.6 percent year-over-year growth in January 2018. The shortage of available housing pushed the average monthly rent to $2,545, nearly double the $1,362 national average.

Meanwhile, the reign of Sacramento as the top market for multifamily rent growth continued in 2017, and it is poised to remain at the top in 2018. Rents rose 8.1 percent year-over-year in January — significantly higher than the U.S. average of 2.8 percent — cementing the city’s position as the strongest market for rent growth among major metros. At $1,389, Sacramento’s average rent eclipsed the average national rent of $1,362.

You can download the full San Francisco report here and the full Sacramento report here.

Yardi Matrix is a data and analytics service for real estate professionals.