Sacramento Apartment Market Projections – 2017

Just passing on an article and information I just received.

If you’re thinking of getting into the Multi-Family Housing market as an Investor and you’re new at it, I’m sure you’ve thought a lot and hopefully have done some research.   You can always contact me for more information and set up a time for a free consultation.

The Sacramento Apartment Market is one of the top 20 in the nation and is still affordable especially compared to some markets in the San Francisco Bay Area.

In our market we find it’s hard to find a 2 bedroom 1 bath apartment unit with lots of amenities for under $1,000 per month.

To get an idea of what we have for rent go to HavenRents.com and you’ll get a sense of what the prices are for various types of properties we currently have available.   You can also go to the “rentals page” here on this site.

I received and thought I’d share a 2017 market projection from CBRE, a large real estate investment company that works in Retail, Office, Industrial and of course Multi-family projects through out the the country.

CLICK HERE for that article and go to Page 31 for their “Multi-Family” projections.   I think you’ll appreciate their findings and conclusions.   It looks to me like the Sacramento Region’s Multi-Family market should remain strong.   I think this remains especially true in the smaller multi-family units, such as Duplexes, Four-Plexes or small apartment complexes.   Why…?  Because they haven’t built any in the last several years.   Sacramento Duplexes/Four-plexes for sale don’t stay on the market very long.

So if you have stumbled on this blog site and are thinking of investing in the Residential Real Estate Market in the Sacramento area please contact me at anytime.    We specialize in the Sales and Management of Single Family Homes, Duplexes, Tri-plexes, Four-plexes and small to medium sized apartment complexes.

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker, CRS,  GRI, SFR, CDPE,     favinger@rwnetwork.com   916-203-1260

 

Are You an Apartment Investor…? You’re not alone…!

Rents are going up… Prices are going up..

This news hasn’t reached a lot of people yet, but apartments seem to be the next big thing.   The reason, as most pronosticators in real estate will tell you. is that the Millennials have not decided yet to get into the “home buying” mode.

Instead they are opting to rent.   They like areas such as Sacramento’s Midtown area which has an eclectic atmosphere that not only includes apartments but also restaurants, coffee shops, bars, night clubs and of course a close proximity to lots of jobs in downtown.   Don’t forget we have the new sports arena currently under construction there. http://livinginurbansac.blogspot.com/2012/08/finished-la-valentina-project.html

In addition since the great recession around the area I live, Folsom, Ca, they are just now starting work at catching up in the demand for new housing.   As you can surmise, affordable rental housing is a hot item pretty much across the board.

I know in our Property Management business, we rented out a single family home in Empire Ranch within a day or so of it hitting the market.   Another example to share with you is we recently represented a small investor that purchased a Duplex through us. He immediately raised the rent on one side from $800 to a $1,000 and the other from $1075 to $1175.

Below, to make my point, are some recent articles from various sources.  By the way.. click on the picture above here to catch some photos of some nice projects in Sacramento.

Region’s biggest apartment complex changes hands for reported $62M – Sacramento Business Journal

Investors Keep Piling into Aparments –National Real Estate Investor

Sacramento region leads nation in apartment occupancy increase – Sacramento Business Journal

You’ll notice in some of those articles that these investors intend to fix these up and “drive rents”.   If you’re a small investors, say Duplexes, Four-Plexes or small Apartment complexes, please take note because those dynamics work for you too.

Let me know what you think and in the mean time…?

Make it a Great Day…!

Ed Favinger, Broker CRS, GRI, SFR, CDPE      favinger@rwnetwork.com   916-203-1260