Warren AdamsAfter reading a July 7, 2014, article by Ben van der Meer, Staff Writer for the  Sacramento Business Journal, a potential growth area for investors seems to be emerging.

The article points to job growth, high rental occupancy rates (as high as 96% in California), and increases in rental rates.  These factors all lead to a shortage of rental space.

The most intriguing portion of Van der Meer article is a quote by Jay Denton of Axiometrics (an apartment data research firm).  In the article Denton, reflecting on current growth rate, states,  “Rent growth that’s expected on this pace is 5 to 6 percent, and it could be even stronger,” he said. “Simply because there’s not much new in the way of supply anytime soon.”

The article states further that “Within the region, Citrus Heights saw the greatest year-over-year gain in rents, 14.4 percent, going from a median of $869 a month to $995. Downtown Sacramento, which includes the popular midtown neighborhood, saw an 11.3 percent gain in occupancy to 92.3 percent, while the Arden Way corridor, at 96.8 percent, has the highest overall occupancy rate among submarkets.”

Read the entire article click here,  then contact our office.  Our experienced real estate agents can help you find properties to suit your investment needs.

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