October 2026 Redding Rental Market Update for Property Owners

Introduction

October in Redding means cooler mornings, the first real rain on the way, and pumpkin patches popping up around town. It is also a month when the rental and sales markets start telling two different stories.

This month we cover our September numbers, a new kind of owner we are meeting more often, a jump in mortgage rates, a stove and refrigerator rule that is now in full swing, a quick winter-prep list, and a few ways we gave back in September.

🏘️ Redding Rental Market Update

Our portfolio vacancy is holding steady at about 6% as of October 11.

September was a busy month for our team:

• 28 move-ins
• 16 move-outs
• 60 lease renewals

Sixty renewals tell us a lot of good residents are choosing to stay, and that is the best outcome for any owner. Every renewal is a month with no turnover costs and no empty home.

👉Vacancies are ticking up a little, and we think we know why. More homes are entering the rental market, which brings us to this month's big topic.

🔑 Owner Insight: The Rise of the Accidental Landlord

We are meeting a lot of new owners right now. Many had a home for sale for a couple of months and could not get it sold. Now they want to rent it instead, and many are likely paying two mortgages while they wait. Many of them are also not willing to give up a great mortgage rate somewhere between 2% and 4%. We understand that. A rate like that is hard to walk away from. That extra inventory is a big reason vacancies are creeping up slightly in Redding.

So what is an accidental landlord? It is someone who ends up renting out a home because of their situation, not because they set out to invest. Common reasons:

• Moving for a new job
• Buying a new home, planning to sell the old one, and then not being able to
• Moving to a bigger city for better medical care during a life event

Most plan to rent for a few years. In our experience, most accidental landlords end up staying long-term landlords. They like the steady income, and they enjoy the tax benefits, especially depreciation. If you are new to that idea, our post on Rental Property Depreciation: Tax Deductions Every Landlord Should Know is a good place to start. As always, talk with your CPA about your own situation.

Know someone with a home that will not sell? Or are you in that spot yourself? We are happy to help. Start with a free rental analysis to see what the home could likely rent for.

📈 Shasta County Sales Market Snapshot

In his October 2026 update, Josh Barker reports 30-year fixed rates around 7.75%, with some buyers seeing close to 8%. That is nearly a full point higher than a month or so ago. A buyer who qualified for about $400,000 last month may now qualify for closer to $360,000.

• 208 homes sold in September, down about 9.2% from 229 a year earlier
• Year-to-date, 2,100 sales versus 1,954 in 2025, still up about 7.5%
• Homes are selling around 95% of original list price
• Absorption is about 4.1 months, a balanced market

What it means for you: When payments jump, more households keep renting, which supports rental demand. It also means more homes that do not sell may turn into rentals. Clean, well-priced homes that are shown fast are more likely to lease first.

⚖️ Legislative Lowdown: AB 628 Is Now in Full Swing

A quick reminder. Under California Assembly Bill 628, a working stove and a working refrigerator are now part of the basics a California rental must have (Civil Code Section 1941.1). It applies to leases entered into, amended, or extended on or after January 1, 2026. With renewals rolling in all year, it now covers a big share of homes.

• The stove and fridge need to be in good working order
• A recalled appliance does not count and needs to be repaired or replaced within 30 days of notice
• A tenant can supply their own fridge, but only with specific written lease language

If a renewal is coming up on a home without appliances, let's plan for it now.

**This section is informational only and is not legal advice. Please review it with your attorney or trusted professional when needed.

🛠️ Seasonal Maintenance Tips

Redding can go from dry to drenched fast. A short fall checklist saves emergency calls later:

• Service the heater and replace the filter before the first cold snap
• Clear gutters and downspouts after the leaves drop
• Look over the roof for loose or missing shingles
• Wrap exposed pipes and hose bibs before freezing nights
• Test smoke and CO alarms when daylight saving time ends on Sunday, November 1

💚 Giving Back in September

September was a full month for our team in the community:

• We sponsored and played in the Cronic Disaster Restoration Golf Fundraiser, with proceeds supporting Raising Shasta and the kids and families they serve across Shasta County.
• We donated a raffle basket to Heroes on Paws, a benefit supporting local police K-9 units in Redding.