Noah Patel
Rent prices in Sacramento have been on an upward trajectory, with a median rent of $1,678, up 0.7% month-over-month and 69% since 2010. This trend is not unique to Sacramento, as national rent prices have also increased. However, Sacramento's rent growth stands out, ranking as the third-highest in the nation. The city's expenses are 19% above the national average, with housing costs a staggering 41% higher. These rising rents are impacting residents, with 30% of renters spending half their wages on rent and many facing challenges in finding affordable housing. With a limited housing supply and high demand, Sacramento's rental market continues to evolve, shaping the financial landscape for its residents.
| Characteristics | Values |
|---|---|
| Median rent in Sacramento | $1,678 |
| Median rent in Sacramento (2019) | $1,390 |
| Median rent in Sacramento for a two-bedroom apartment (2022) | $1,688 |
| Average rent in Sacramento | $1,921 |
| Average rent in Sacramento (2019) | $1,393 |
| National median rent | Slightly lower than Sacramento |
| National rent increase (year-over-year) | 36% |
| Sacramento rent increase (year-over-year) | 20-30% |
| Sacramento rent increase (since 2016) | 7.4% |
| Sacramento's rank in rent increases in the US | 3rd |
| Percentage of Sacramentans spending half their income on rent | 30% |
| Percentage of Sacramentans spending more than 35% of their gross income on housing | 50% |
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What You'll Learn
Sacramento's rent is above the national average
Sacramento's rent prices are above the national average, with the city's overall expenses 19% higher than the national median. The city's housing costs are a significant factor, sitting at 41% above the national average. The median rent in Sacramento is around $2,000, with some sources citing an average rent of $1,921. This is a dramatic increase from 2019, when the median monthly rent was $1,390.
Sacramento's rent prices have been steadily increasing over the years, with a 69% jump from 2010 to 2019. In 2022, the median rent for a two-bedroom apartment was $1,688, a $400 increase from 2015. This rise in rent prices is due to a combination of high-interest rates and low vacancy rates. The rental vacancy rate in Sacramento was 2.76% in 2019, a significant decrease from its peak of 8.02% in 2009.
The high demand for housing in Sacramento also contributes to the rising rent costs. The city's population growth and limited housing supply have led to a low vacancy rate, driving up rent prices. Sacramento's rent growth is faster than nearby areas, resulting in a limited number of rentals available, making it challenging for residents to find affordable housing.
The cost of rent in Sacramento varies depending on location, size, and quality. The average size of an apartment in Sacramento is 827 square feet, with studio apartments being the most affordable and three-bedroom apartments offering the most space. The most expensive neighbourhoods in Sacramento include Natomas Crossing, Ramona Village, and CSUS, with average rents of $2,562, $3,035, and $4,028, respectively.
The high rent prices in Sacramento have a significant impact on residents' financial situations. According to a census, 30% of Sacramento renters spent half of their wages on rent, and nearly 50% spent more than 35% of their income on housing. Many renters, like 22-year-old Andres Alvarado, find it challenging to rent alone and must live with roommates to make it affordable. Alvarado spends about 40% of his paycheck on rent, leaving him with less money to save and invest.
While there are regulations and initiatives in place to address the rising rent costs in Sacramento, the implementation of these solutions is challenging due to limited funding and low awareness. As a result, Sacramento continues to have above-average rent prices, impacting the financial well-being of its residents.
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High demand and low housing supply
Sacramento's rental market has seen significant changes in recent years, with rents increasing steadily. While there was a slight dip in 2024, rents in the region remain high compared to the national average. The median rent in Sacramento is around $2,000, with a one-bedroom apartment averaging $916 and a two-bedroom apartment averaging $1,161. The city's expenses are 19% above the national average, with housing costs a significant 41% higher.
Several factors contribute to the high rental demand in Sacramento. Firstly, Sacramento has a higher cost of living compared to the rest of the nation. Wages in the San Joaquin Valley grew by 21.2% from 2010 to 2019, but Sacramento's rent jumped by a much larger 69% during that period. This discrepancy between wage growth and rent increases has made renting less affordable for many. Additionally, Sacramento's desirability as a place to live has attracted investors and new residents, further increasing demand.
At the same time, Sacramento faces a low housing supply, which exacerbates the issue. The city's vacancy rates are low, and there are not enough homes available to meet the demand. This imbalance between high demand and low supply leads to bidding wars, driving up rent prices even further. The pandemic, inflation, and elevated interest rates have also negatively impacted housing supply. New home construction dropped significantly after the Great Recession and has yet to fully recover. Additionally, rising material costs, supply chain issues, and labor shortages have hindered the ability to increase the housing inventory.
The combination of high demand and low housing supply has resulted in a competitive rental market in Sacramento. About 40% of a renter's income goes towards rent, and many are forced to live with roommates to make renting affordable. The situation has led to concerns about the comfort and financial goals of residents.
While there are regulations and initiatives in place to address the issue, their implementation is challenging due to limited funding and low awareness. As a result, Sacramento continues to experience high rents, with residents spending a significant portion of their income on housing.
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Median rent in Sacramento is around $2,000
While rents in Sacramento are above the national average, the median rent in Sacramento is not the highest in the nation. The median rent in Sacramento is around $2,000, although this varies depending on the source and the timeframe considered. For instance, in 2025, the median rent was $1,875, while in 2024, the median rent was $1,678. In 2022, the median rent for a two-bedroom apartment was $1,688, and in 2019, the median monthly rent was $1,390.
Sacramento has experienced significant rent increases in recent years, with rents rising faster than in nearby areas. In 2022, rents were up by about 20-30% compared to a few years prior. This is due to a combination of high interest rates and low vacancy rates, as well as high demand and limited housing supply. The high cost of living in Sacramento, which is 19% above the national average, also contributes to rising rents.
The cost of rent in Sacramento varies depending on location, size, and quality. The average rent for a one-bedroom apartment in Sacramento is around $916, while a two-bedroom apartment is approximately $1,161. However, in downtown Sacramento, the average rent for a one-bedroom unit is about $2,200 per month. The most expensive neighbourhoods in Sacramento include Natomas Crossing, Ramona Village, and CSUS, with average rents ranging from $2,562 to $4,028. On the other hand, more affordable neighbourhoods such as Woodbine, Bella Villa, and Old North Sacramento offer average rents between $1,300 and $1,343 per month.
The high rent prices in Sacramento have had a significant impact on residents. According to a census, about 30% of Sacramento renters spent half of their wages on rent, and nearly 50% of renters spent more than 35% of their income on housing. Many renters, like 22-year-old Andres Alvarado, find it challenging to rent alone and choose to live with roommates to make renting more affordable.
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Sacramento's expenses are 19% above average
Sacramento's expenses are 19% above the national average, with housing costs a significant 41% higher. This makes the median rent in Sacramento around $2000, compared to the national median rent of $1678.
Sacramento's rental market has changed significantly in recent years, with rent increases both annually and monthly. In 2024, rents rose by 0.7% month-on-month, and 2.5% in the first half of the year. This is a notable increase compared to the national average. In 2019, the median monthly rent in Sacramento was $1390, which had increased by 19.93% three years later.
Sacramento's housing demand and limited supply contribute to the high costs. The city's vacancy rate was 2.76% in 2019, indicating a shortage of available rental properties. This demand, coupled with rising construction costs and a strong economy, has led to a rapid increase in rents.
The high cost of living in Sacramento is not limited to housing. Groceries, transportation, and utilities also contribute to higher expenses. For instance, transportation costs in Sacramento amount to $4938 a year, and food costs $3999 annually for a single resident. Sacramento's sales tax rate is also 8.75%, which is high compared to other cities.
The median home price in Sacramento is 95.6% higher than the national average. This has resulted in many renters spending a large portion of their income on rent. Approximately 30% of Sacramento renters spend half their wages on rent, and nearly 50% spend more than 35% of their income on housing. As a result, many residents live with roommates to make renting more affordable.
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Rent growth faster than nearby areas
While rents in Sacramento are above the national average, they are not the highest in the nation. In 2022, the median rent for a two-bedroom apartment in Sacramento was $1,688, an increase of over $400 from seven years prior. While rents in the region are up, this is due to a combination of high interest rates and low vacancy rates, a trend reflected across the nation.
Sacramento's rent growth over the first six months of 2024 was 2.5%, higher than the 0.9% increase in 2023. In June 2024, rents rose by 0.7%, which is notable when compared to the national average. Sacramento was 35th among big U.S. cities in rent growth, with a median rent of $1,678. This is an increase from 2019, when the median monthly rent in Sacramento was $1,390.
Sacramento's vibrant rental market is influenced by many factors, including its strong and diverse economy, which has shown considerable growth in recent years. The city's job market provides opportunities in government, healthcare, education, and technology, with major employers such as UC Davis and state government agencies. This attracts professionals and families to the area, driving the demand for housing.
The quality of life in Sacramento is also a significant factor in its rental market. The city offers a pleasant climate, outdoor recreation, a vibrant cultural scene, and convenient access to other desirable destinations in California. These factors make Sacramento an attractive place to live, contributing to the high demand for housing.
Rent growth in Sacramento is faster than in nearby areas. The high demand and limited housing supply drive rents up, making it challenging for residents to find available rentals. While regulations and initiatives are in place to address these issues, limited funding and low awareness hinder their effective implementation.
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Frequently asked questions
No, but rents in Sacramento are above the national average and are among the nation's highest. In 2022, the median rent for a two-bedroom apartment in Sacramento was $1,688, an increase of over $400 from seven years prior. The average rent in Sacramento is $1,995, with rents ranging from $500 to $7,900.
Sacramento's high rents are due to a combination of high interest rates, low vacancy rates, and high demand for housing. The city's expenses are 19% above the national average, with housing costs a significant 41% higher. Sacramento's rent increased by 69% from 2010 to 2019, while wages in the San Joaquin Valley only grew by 21.2% during the same period.
Rent prices in Sacramento vary depending on location, size, and quality. The most expensive neighbourhoods in Sacramento are Natomas Crossing ($2,562), Ramona Village ($3,035), and CSUS ($4,028). The most affordable neighbourhoods are Woodbine ($1,301), Bella Villa ($1,333), and Old North Sacramento ($1,343).
