Bakersfield CA 2021 Mid Year Multifamily report

[Marc A. Thurston]

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.