No. 25: Sacramento-Arden-Arcade-Roseville, Calif.

Average monthly rent: $921
Annual drop: -6.7%
Q4 2009 drop: -2.7%

The rental market remains shaky in California’s state capital. Unemployment in the Sacramento metro increased to 12.3% in December and 2009 vacancy rates jumped to 7.5% in 2009, from 6.5% in 2008. While there are signs of recovery, Sacramento’s labor market will continue to suffer from moderate growth, tight credit, excess capacity, and caution toward hiring this year, according to a report in the Sacramento Business Review.