2025 Davis Apartment Vacancy and Rental Rate Survey Shows Average Rents Decline for First Time in Over a Decade
For more than 10 years, BAE Urban Economics has administered the annual Davis Apartment Vacancy and Rental Rate Survey on behalf of UC Davis Student Housing and Dining Services, which is in its 50th annual iteration. The results, recently reported by the Davis Vanguard, highlight a notable shift in the Davis rental housing market, including the first decline in average rents in more than a decade.
Key Findings from the 2025 Survey
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Average Rent Declined: The blended average monthly rent for market-rate apartments in Davis decreased 1.8%, falling from $2,762 in fall 2024 to $2,711 in fall 2025.
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Vacancy Rate: The blended vacancy rate across all rental types was 3.5%, slightly below the 4.0% reported in the prior year.
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Survey Coverage: Responses were collected from 111 apartment complexes and property management companies, representing 10,917 rental units—approximately 84% of the Davis multifamily housing stock.
Detailed Rent and Vacancy Trends
- Unit-Leased Apartments: Weighted average rents for apartments leased by the unit declined 4.8%. Two-bedroom units averaged $2,303 per month.
- Bed-Leased Apartments: Rents for bed-leased units increased modestly (+4.7%), reflecting changes in occupancy patterns.
- Rent Adjustments: 51% of survey respondents reported rent decreases in 2025, compared to 30% in 2024.
Supply Conditions and Leasing Incentives
- Leasing Incentives: 59 apartment complexes offered move-in incentives in 2025—approximately 35% more than in 2024.
- On-Campus Housing Growth: Since 2017, UC Davis has added more than 6,260 new apartment and residence hall beds. Approximately 41% of Davis-based students now live on campus, up from roughly 29% a decade ago.
Project Impact
The 2025 survey results mark a meaningful milestone in the Davis rental market. Through rigorous data collection and analysis, BAE Urban Economics provided UC Davis and community stakeholders with comprehensive, market-wide insights. The findings demonstrate that sustained housing supply expansion, particularly new on-campus housing coupled with robust market rate development in the community, is contributing to improved market balance and rent stabilization throughout the broader Davis community.