Sacramento, CA Multifamily Market Report | Colliers | Q1 2026

Market Overview

‍
Sacramento's multifamily market posted positive net absorption of 577 units in Q1 2026, reversing two consecutive quarters of negative absorption and signaling a demand recovery as new supply moderated sharply. Occupancy held at 95.4% while same-store effective asking rents declined 1.2% year-over-year for the third straight quarter, with average monthly effective rent at $1,991. An estimated 952 units are projected to be delivered in 2026, a 72% decline from 2025's 3,363 units, and the under-construction pipeline of 1,999 units is the lowest since Q2 2017. Investment sales volume totaled $208.4 million in Q1, with the trailing 12-month total reaching $1.27 billion, up 54% year-over-year, and the rolling 12-month average price per unit rising 12% to $212,751. With Sacramento's position as the state capital, a younger demographic base, and a sharply thinning supply pipeline, the market is well positioned for occupancy stability and a potential return to rent growth as new starts remain limited through 2027.

‍About Colliers

‍
Colliers is a global real estate services and investment management firm operating across more than 60 countries. The firm offers comprehensive brokerage, capital markets, valuation, advisory, and research services. Their Q1 2026 Sacramento multifamily report tracks occupancy, rents, absorption, deliveries, and investment sales activity across 12 submarkets to help owners, developers, and investors assess market conditions and timing. To read the full report, click here.