Sacramento, CA Multifamily Market Report | Colliers | Q4 2025

Market Overview

‍
Sacramento's multifamily market closed Q4 2025 with softening fundamentals running alongside a sharp investment rebound. Demand turned negative for the second consecutive quarter at 391 units, pulling 2025 annual absorption to just 14% of 2024's total, while rents fell 2.4% year-over-year to their lowest level since Q1 2010. Concessions reached 17.7% of available units, a multi-year high. On the capital markets side, Q4 sales volume surged to $579 million, the highest quarterly total since Q3 2022, with annual volume reaching $1.36 billion and average prices recovering to a 30-month high of $208,341 per unit. With 2026 deliveries projected to fall 45% to 1,508 units, the supply correction is well underway and conditions for gradual demand recovery are taking shape.

‍About Colliers

‍
Colliers is a global real estate advisory and investment management firm serving owners, operators, and investors across major U.S. markets. Their Q4 2025 Sacramento multifamily report tracks occupancy, rents, absorption, deliveries, and investment sales activity by submarket to help owners, developers, and investors assess market conditions and timing. To read the full report, click here.