As a result, the overall vacancy is expected to fall modestly to 7.2% by the end of the year after rising for the past four years. As well, asking rents are on pace to climb 2% by year-end 2005 to $923 per month, according to the report, and concessions are on the decline, accounting for 5% of asking rents, a slight improvement from year-end 2004. Having said that, Hicks states that vacancy and concessions will continue to be above average in pricier areas, such as Folsom, Roseville, Rocklin and Elk Grove, where the luxury rental market has lost many renters to home ownership.

The improving fundamentals has attracted investors who like the fact that the area has comparatively low acquisition prices, though recent strong demand has put upward pressure on prices. The median price climbed 11% in 2004, to $82,000 per unit, and has risen to more than $86,000 per unit so far this year.

Of course, being the median price means few sales actually come in at that figure. Data on three apartment sales here in August show per-unit prices ranging from $43,750 per unit to $150,000 per unit.

The least expensive deals were for properties in Sacramento proper. Dawson Holdings Inc. of Sausalito, CA, acquired Rosewood Manor, a 97-unit property located at 9400 N. Kiefer Blvd., for $5.02 million or about $51,804 per unit. As well, one week later, Dawson Holdings acquired Willow Tree, a 108-unit community at 2300 Norwood Ave. for $4.72 million or $43,750 per unit. The seller in both cases was a California LP based in the City of Gold River.

The more expensive deal was in the Sacramento suburb of Carmichael. Parkview Investors LLC of Sacramento paid $6.45 million for a 43-unit complex located at 7032 Fair Oaks Blvd. The seller was Donald Meagher of Coastal Exchange Group in San Diego County. The new owner plans to convert the property to condominiums.