Whether it’s single-family homes, condominiums or apartment rents, different research suggests Sacramento continues to be one of the hottest real estate markets in the country.
Realtor.com listed the Sacramento metropolitan statistical area as the fourth-hottest real estate market nationally, based on the median number of days a home is on the market. And Yardi Matrix’s new report on apartment rents showed Sacramento, with 7.3 percent year-over-year growth, continuing to lead the U.S. in that metric.
Javier Vivas, Realtor.com’s manager of economic research, said Sacramento ranked third in April and fourth in May. But he said other markets are cooling.
“Sacramento, by default, is moving up the ranks,” he said. Median number of days homes were on the market last month was 33 days, only one day longer than in April.
Tight inventory is a function of the same mechanism that’s pushing apartment rents up: higher demand from both inside and outside the market and little supply. Vivas said the Bay Area remains a big source of potential homebuyers for both condominiums and single-family homes in Sacramento. But he said the market is also getting interest from Southern California and other western U.S. states like Texas and Arizona, suggesting perceived value and quality of life as attractions.
That’s also reflected in more first-time homebuyers in the Sacramento market this year, he added.
For apartment rents, Yardi Matrix’s story was familiar. National rents rose by 1.5 percent in May over the previous year, suggesting Sacramento is increasingly an outlier. The percentage of new apartments as a percentage of total stock locally, .6 percent, was among the lowest in the country. In markets where there’s been more multifamily construction in recent years, such as San Francisco, the rents have actually dropped in recent months, according to the report.