by Vanguard Staff
DAVIS, Calif. — The average rent for apartments in Davis declined for the first time in more than a decade, according to the 2025 Apartment Vacancy and Rental Rate Survey released Feb. 18, as thousands of new student housing beds have come online in recent years.
Rents for market-rate apartments, including both unit-leased and bed-leased properties, fell 1.8% from fall 2024 to fall 2025, bringing the blended average monthly rent down from $2,762 to $2,711, according to the survey conducted on behalf of UC Davis Student Housing and Dining Services .
The blended vacancy rate for all rental types was 3.5%, slightly lower than the 4.0% reported in fall 2024 .
The annual survey, conducted for more than 50 years and administered since 2013 by BAE Urban Economics, collected responses from 111 apartment complexes and property management companies representing 10,917 rental units. The surveyed units account for approximately 84.4% of the Davis-area multifamily housing stock, based on American Community Survey estimates .
Overall, the 2025 survey marked the first decrease in overall rental rates since BAE began conducting the survey in 2013 .
“We are gratified to see that years of investment in building student housing on campus is helping lower rents for students and others in the community,” said Donelle Allen, interim associate vice chancellor for housing, dining, divisional operations and technology in Student Affairs at UC Davis. “Continuing to add campus housing remains a key priority for the university.”
The survey found that 51% of respondents reported decreasing rents in 2025 compared to the previous leasing season, a notable shift from 2024, when only 30% of respondents reported rent reductions .
Among apartments leased by the unit, the weighted average monthly rent declined 4.8%, from $2,435 in 2024 to $2,309 in 2025 . Two-bedroom units, which account for 45% of unit-leased apartments, averaged $2,303 per month and were shared by an average of three residents .
The vacancy rate for unit-leased apartments fell to 2.6%, down from 4.2% in 2024 . Survey respondents reported 174 vacant unit-leased apartments out of 6,705 reported units .
Apartments leased by the bed represented 35% of reported market-rate rental units, totaling 3,664 units with 10,329 leasable beds . The weighted average bed lease rent rose 4.7%, from $1,168 in 2024 to $1,223 in 2025 .
BAE Urban Economics attributed part of the increase in average bed lease rents to a slight decrease in double-occupancy rooms, particularly in larger units, which tends to raise per-bed rental costs .
The vacancy rate for bed leases was 4.5%, slightly higher than the 3.8% reported in 2024 but below the 5.9% rate recorded in 2023 .
To calculate a communitywide figure, BAE combined unit-lease and bed-lease vacancy rates to generate a blended vacancy rate of 3.5% .
The report noted that overall enrollment growth at UC Davis has slowed in recent years. According to university data cited in the survey, total headcount has grown by 0.1% annually since 2020, compared with average annual growth of 2.1% between 2010 and 2020 .
The survey also documented an increase in rental incentives. Fifty-nine apartment complexes reported offering incentives or move-in specials during the 2025 leasing season, approximately 35% more than in 2024 . Incentives ranged from small gift cards to two months of discounted rent, with an average value of roughly $1,600 .
Mandatory additional charges remained common. Forty unit-leased complexes reported levying mandatory charges beyond base rent, often for utilities or parking . Among properties charging separate parking fees, the average monthly cost was $58 . Bed-leased complexes reported similar additional charges, including flat utility fees ranging from $10 to $59 per person and parking fees averaging about $65 per month .
Amenities and services continued to vary by lease type. Bed-leasing properties were more likely to offer amenities such as pools, gyms and furnished units, while most unit-leased properties offered fewer on-site amenities .
Since 2017, UC Davis has added more than 6,260 new apartment and residence hall beds on campus through construction of Orchard Park, the Tercero 4 complex, Yosemite Hall, The Green at West Village and Shasta Hall, as well as by increasing occupancy in larger units at Sol at West Village. In fall 2025, approximately 15,100 students lived on campus.
It is estimated that 41% of Davis-based students live on campus this academic year, compared to about 29% in 2016-17. The campus is conducting preliminary planning to accommodate 48% of students with on-campus housing in the future.
In fall 2025, UC Davis reported total enrollment of 40,617 students, including undergraduate, graduate and professional students, as well as 1,208 veterinary and medical residents and interns, a decrease of 622 students, or 1.5%, from fall 2024.
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Rent has been falling across the entire region and nation; not just in Davis.
“Sacramento-area rents decline, signaling a cooler market”
“National rents keep falling, reinforcing the broader reset”
https://www.realtor.com/advice/hyperlocal/sacramento-rents-are-going-down/
The broader picture could also be a result of unsustainable price increases during the pandemic, ultimately impacting demand.
Same reason that housing prices have been going down (and crashing in some markets), as well as an oversupply in places like Austin.
As well as this reason, noted in the article:
“The report noted that overall enrollment growth at UC Davis has slowed in recent years. According to university data cited in the survey, total headcount has grown by 0.1% annually since 2020, compared with average annual growth of 2.1% between 2010 and 2020.”