Sacramento Rents Rise At "Snail's Pace"

From the Sacramento Bee:

With supply still outstripping demand, thousands of Sacramento-area apartment dwellers continue to enjoy some of California's slowest-rising rents, a new report indicates. The region's monthly rents at large apartment communities averaged $955 monthly in April, May and June, according to rental industry tracker RealFacts. That was up $21 a month from the same time last year, a 2.2 percent increase. The slow rise ranked Sacramento 21st among 24 California metro areas for the size of rent increases in the second quarter.
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[R]enters in the Sacramento area got a long-running break, with average rents increasing only 7.3 percent over the past four years, RealFacts reported.
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A year ago, some industry analysts projected it was only a matter of months before Sacramento-area rents would follow the Bay Area and begin a more rapid rise. But that hasn't materialized in this region, where less than 93.5 percent of the units in large apartment complexes are occupied. Landlords typically don't raise rents unless a complex is 95 percent to 96 percent occupied.

From the Modesto Bee:

It's a good time to be a renter in Modesto. While apartment rents elsewhere in California keep rising, they remain flat in Modesto, according to statistics released today by the research firm RealFacts. The average apartment rented for just $808 a month in Modesto in April, May and June. That's about the same price paid throughout 2006.
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When the Northern San Joaquin Valley housing market was booming, investors jumped in to buy homes they planned to resell, or flip, at higher prices or to use as rentals. As the market cooled, it became inundated with rental units, and that has helped hold down rents.