As rent growth rate slows nationally, Sacramento bucks the trend with a 2.5 percent increase
Rents continue to increase in the Sacramento region
One of the effects of higher interest rates imposed by the Federal Reserve Bank has been a decrease in the growth rate of rents. While rent growth rates have slowed, Sacramento rent growth rates continue their rise.
According to an analysis from Redfin, February was the ninth straight month in which rent growth slowed on a year-over-year basis. Rents fell 0.3% from a month earlier. Still, the median asking rent remained 21.4% higher than it was in February 2020, the month before the coronavirus was declared a pandemic.
The median U.S. asking rent rose 1.7 percent year over year to $1,937 in February—the smallest increase in nearly two years and the lowest level in a year, according to a new report from Redfin (redfin.com). Rents were up nearly 10 times that much (16.5%) a year earlier.
The report showed that the median rent in Sacramento was $2,718, which is an increase of 2.5 percent from February 2022. By comparison, Phoenix saw rents decrease 4 percent while Austin, another hot spot during the pandemic, saw a 6 percent drop year-over-year.
Rents Declined in 11 Major U.S. Metro Areas
- Austin, TX (-6.5%)
- New Orleans, LA (-6.4%)
- Phoenix, AZ (-4%)
- Minneapolis, MN (-3.5%)
- Dallas, TX (-2.6%)
- Baltimore, MD (-2.2%)
- Houston, TX (-1.9%)
- Birmingham, AL (-0.5%)
- Chicago, IL (-0.5%)
- Denver, CO (-0.3%)
- Virginia Beach, VA (-0.2%)
