A new report shows that rents for properties with 0–2 bedrooms continued to decline for the 29th consecutive month through January 2026. Across the 50 largest cities, rents fell by $26 (-1.5%) compared to the previous year, as the market correction that began after the summer 2022 peak continues. This trend reflects a more tenant-friendly rental market, with 44 out of 50 cities classified as either renter-friendly or balanced.
In Sacramento, the average rent in January 2026 reached approximately $1,818, marking an annual decline of 2.3%. The market in Sacramento shifted from landlord-favorable in 2024 to balanced in 2025, as the vacancy rate rose from 3.8% to 6.9%. A vacancy rate between 5% and 7% typically indicates a balanced market, giving renters more options and greater negotiating power.
Nationally, rents across the 50 largest cities averaged $1,672 in January 2026, down $85 from the peak recorded in summer 2022. Rents declined across all unit types: two-bedroom apartments fell by 1.7%, one-bedroom units dropped by 1.4%, and studio apartments decreased by 1.2%.
In a rent-versus-buy comparison in Sacramento, renting remains less expensive on a monthly basis than typical mortgage payments. The average listing price of homes for sale in the area reached $599,000 in January 2026. While declining rents provide temporary financial relief, purchasing a home remains a major financial commitment for many.
