SACRAMENTO, Calif. (KTXL) — As more people from the Bay Area move to Sacramento, the demand for apartment complexes is on the rise and rent prices continue to soar.
From fancy high rises to family-unit apartment complexes, Sacramento is quickly becoming the new hot spot for eager tenants, even as the average rent price jumps to $1,882 a month.
It’s nearly $30 more than one of the nation’s most expensive cities to live — Seattle.
But as renters move in, landlords and many property owners are ready to buy-out.
“It is a very complex market right now with all of these moratoriums and all new changes,” said Tahirih Kraft, Sacramento Self Help Housing director.
More properties, like one 140-unit complex in North Highlands that sold for more than $18 million to a Bay Area investor, are steadily being placed on the market.
Kraft says it’s likely because more owners are needing to recoup losses during California’s eviction ban.
“When you had SB 1482, SB 91, you’ve got the Tenant Protection Act, there is much going on right now, and I think owners and tenants can get very confused,” Kraft said. “If owners are not receiving that rent and they can’t pay their bills, they’re probably going to get rid of those one or two properties that they have to make that income up.”
Kraft says a common misconception is people thinking they don’t have to pay any rent until all the state’s moratorium ends on June 30. But that’s not the case.
“During that time period, tenants are supposed to be paying 25% of their rent,” she said.
It’s creating what Kraft says is a vicious cycle in the rental market.
“People raise rents, so then we have to ask for more money per hour, which then increases gas and food. I mean everything shifts up,” Kraft said.
The trend of rising rent prices in Sacramento may not slow down in the near future.
Kraft agrees with many who say for the average working person, finding affordable places to rent in areas like downtown Sacramento is near impossible.