DEFINITIONS

We are proud to announce that we have revamped and expanded our tracking of the Sacramento region’s multifamily market to include detailed statistics by class, as well as by submarket. Our quarterly market survey includes competitive multifamily complexes of at least 25 units or more throughout the Sacramento region. Our survey does not include residential condominiums or co-ops. All told, our survey includes 1,296 apartment communities accounting for 152,672 housing units.

Class A product accounts for a total of 90 local projects and 17,745 housing units, or 11.6% of the market’s total inventory. Class A properties are typically less than 10 years old and are upscale, luxury apartments. They are in the most desirable geographic areas with top-of-the-market rents. Their tenant base tends to be white collar workers that choose to rent by choice.

Sacramento’s Class B multifamily market consists of 410 apartment communities accounting for 62,288 multifamily units, or 40.8% of the region’s total inventory. Class B properties are defined as typically being 10 to 25 years old and well-maintained. They tend to have a middle-class tenant base, consisting of both white and blue-collar workers. Some are renters by choice, most are by necessity.

There are 796 projects accounting for 72,639 housing units that we classify as Class C properties, or 47.8% of the region’s total inventory. Class C construction is typically 25 to 40 years old. The tenant base for Class C properties is typically low-to-moderate income. Most tenants are renters “for life,” though Class C tenancy also often includes young people just starting out in their careers.