Bakersfield CA 2021 Mid Year Multifamily report
The following stats are for the mid year 2021 multifamily market (4 units and larger) in Bakersfield CA
YTD Sales Volume is $63.9M. At this rate the volume will exceed 2020's volume by 20M.
650 Units have sold
The average Gross Rent Multiplier is 10.99 which is 1% higher than the end of the year GRM in 2020.
The average CAP Rate on closed deals is 5.34%
Average price per unit on fourplexes is $116,663 which is 7.82% higher than 2020's level.
Average price per unit 5 to 30 unit buildings is $84,800 which is up 7.2%
There have been no sales of buildings with more than 30 units.
The YTD appreciation rate is 9.87% which is impressive as it was negative 7.8% at the end of February 2021. The market has been HOT!
In 2007 the all time highest average price per unit was set. In May of 2021, after 14 years, a new high price has not been established eclipsing the old record by 2.1%
Citywide vacancy is .98%
The average rent increase on new move ins is 5.99%. Studios are up 3.31%, 1-bedrooms up 8.64%, 2-bedrooms up 6.51% and 3-bedroom are up 5.5%
For the first time in the history of the Bakersfield multifamily rental market, three apartment communities have broken the $2,000/month rent level.
Finally per the California Apartment Association Website, effective August 1, 2021 Bakersfield landlords will be able to increase rents 9% under the statewide rent control law.
I hope this is helpful information for anyone considering the Central Valley and specifically investing in Bakersfield CA.