Sacramento’s rental market stayed strong in Q1 2025, with rising rents, growing inventory, and steady leasing activity. Property managers remain confident, with most expecting rent prices to hold steady or increase in the coming months.
Rent growth continued across all unit types, especially three-bedroom homes. Inventory also climbed for the sixth straight quarter, giving renters more options ahead of the busy season. Despite higher supply, days-on-market remained low, indicating demand is still healthy.
While the share of listings with concessions remains elevated, a slight dip this quarter suggests improving conditions for landlords. Overall, Sacramento’s rental market is entering peak season with balanced fundamentals and positive momentum.
Continue reading for detailed insights into pricing trends, leasing activity, and more.
In Sacramento, 79% of property managers expect rent prices to remain steady over the next six months, while 19% foresee an increase and only 2% predict a decrease. This suggests a general confidence in market stability with some potential for modest rent growth. When it comes to applicant volume, 81% of property managers report consistent demand, 13% are seeing more applications, and 6% are experiencing fewer. These figures point to a relatively balanced rental market, with stable pricing and steady interest from prospective tenants.
In Q1 2025, 39% of Sacramento listings offered concessions, down slightly from Q4 2024 but still well above the national average of 28 percent. This sustained use of incentives points to continued pressure on landlords to compete for renters, though the slight dip may suggest improving confidence in demand.
Rental properties in Sacramento leased faster than the national average in Q1 2025. Single-family homes averaged 19 days on the market, and multifamily units averaged 22 days, both outperforming national figures of 23 days for each. This indicates relatively strong local demand and effective pricing strategies, especially for single-family homes.
Rents continued to rise across all property types in Sacramento during Q1 2025. One-bedroom units climbed to $1,603, while two-bedroom units reached $1,900. Three-bedroom homes saw the sharpest increase, up to $2,150. Both single-family and multifamily rents also rose, hitting $1,895 and $1,836. These increases suggest a steady upward trend driven by robust demand and limited availability.
Inventory growth continued into Q1 2025, marking a sixth straight quarter of rising listings. One-bedroom units posted the highest jump at 16.1%, followed by two-bedroom and multifamily listings at 12.7 and 15.5%. Single-family and three-bedroom homes also grew, up 5.8 and 7.6%. This rise in supply may help ease rent growth if the trend continues into peak rental season.
This guest chart, courtesy of Snaptimate, illustrates regional cost trends for a typical residential unit turnover. The sample scope is for an 800 single-family unit and includes interior painting, carpet replacement, and resurfacing a pressure-treated deck. While the Northeast remains the most expensive region, the West is rapidly catching up with a 3.8% quarter-over-quarter increase - the highest in the country. Turnover costs are rising nearly everywhere, with 95% of markets analyzed showing upward movement. In the Sacramento market specifically, costs increased by 0.77%. In this work scope labor costs made up the bulk of the total, so wage inflation had the greatest impact on overall increases. The effect of tariffs on construction materials remains unclear, but it will be a key factor to watch in the coming quarters.
Rental data used in this report are sourced and catalogued directly by Rental Beast, unless otherwise noted. Rental Beast listing data covers a range of rental property types and owner types operating within the long-term rental market (generally considered to be leases with a minimum of three months). Single-family rentals (SFR) are considered to be properties with 4 or fewer units. Multifamily (MF) is more than 4 doors. Unless otherwise noted, our analysis uses the Sacramento-Roseville-Folsom, CA, metropolitan statistical area (MSA) as the geographical unit.
Unique listings counts are based on rentals that were on-market at any point during the stated period. Rents are calculated based on these listings. Days on market (DOM) and concession analysis are based on these listings, with some data sources excluded due to DOM and concession info being unavailable or deemed to be unreliable. Concessions are incentives that entice renters to sign a lease (e.g., one month free, a gift card, etc.).
Our sentiment survey is based on phone conversations during Q1 2025 with rental building and community managers and property managers. Questions and answer choices:
DISCLAIMER. This report attempts to provide reliable and useful information; however, there is no guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Rental data used in this report are sourced and catalogued directly by Rental Beast, unless otherwise noted. Our analysis uses MSA as the geographical unit and is not reflective of all-U.S. measures. Information from this document may be used with proper attribution.©2025 by Rental Beast
Snaptimate (www.snaptimate.com) is an app that delivers instant, localized cost estimates for residential repairs, replacements, and renovations—tailored specifically for real estate professionals. It is fueled by the same data trusted by contractors for more than 20 years in the nation’s #1 estimating platform.
