June 5, 2025 / Author: the Railyards
A new report reveals the Sacramento Railyards project will be one of the most transformative urban infill developments in the nation, with a multi-billion-dollar economic impact, tens of thousands of jobs, and long-overdue activity in a district that has sat vacant for more than 50 years.
Economic Impact Analysis Shows Railyards Will Deliver Billions in Economic Output, Nearly 24,000 Jobs, and Unlock One of the Largest Projects in City History
Sacramento, CA — A new report reveals the Sacramento Railyards project will be one of the most transformative urban infill developments in the nation, with a multi-billion-dollar economic impact, tens of thousands of jobs, and long-overdue activity in a district that has sat vacant for more than 50 years.
The comprehensive analysis prepared by Stantec – a global leader in sustainable engineering, architecture, and environmental consulting, with data from Economic & Planning Systems, Inc. (EPS), a firm specializing in public infrastructure financing and land use economics – underscores the immense potential of the Sacramento Railyards, one of the nation’s largest urban infill projects.
With more than $8.2 billion in one-time construction impact and $4.4 billion in annual economic output projected, the Railyards redevelopment projects will redefine Sacramento’s economic future, create thousands of jobs, and address critical housing and infrastructure needs – all without burdening City finances. The new analysis will be included in the City’s staff report ahead of Tuesday’s City Council meeting.
“The Railyards are a great economic opportunity for Sacramento. 160 years ago, the Central Pacific Railroad, located in the Railyards, was the main employer of thousands here in the city of Sacramento,” said Sacramento Mayor Kevin McCarty. “We look forward to seeing this fortuitous return of life to the Railyards, bringing jobs, housing, and opportunity to a space in the heart of our city that may otherwise remain vacant.”
“The Railyards is more than a development – it’s the future heart of the Sacramento region,” said Denton Kelley, President & CEO, Downtown Railyard Venture. “From new housing and a state-of-the-art Kaiser medical campus to a USL soccer stadium, cultural venues, parks, and vibrant retail, The Railyards will offer the kind of amenities and experiences that define world-class cities. These Destinations are where our community will gather for experiences that are uniquely Sacramento.”
“All of the pieces are in place to make our downtown stadium a reality,” said Republic FC President & General Manager. “The vast economic impacts outlined in this report are just the beginning of the community benefits of the stadium and surrounding projects.”
Read additional quotes from Business and Community Leaders
According to the analysis, the project will support nearly 24,000 jobs countywide, including 13,563 direct on-site jobs across healthcare, construction, retail, hospitality, and office sectors. These jobs include skilled trades, healthcare workers, retail, and managerial roles. Collectively, they generate over $2.1 billion in annual wages.
In addition to job creation, the Railyards will deliver up to 10,000 new homes, including affordable units, helping address Sacramento’s urgent housing crisis by offering walkable, transit-connected living near job centers and services. Currently nearly 45% of all the housing available in the Railyards now is affordable.
One of the keys to unlocking the incredible potential of the project is the city’s role in building roads, sidewalks, public parks, utilities and other public infrastructure. Through the Railyards Enhanced Infrastructure Financing District (EIFD) – a mechanism that captures future property tax growth from the project to fund public improvements – these essential elements to allow new construction and create a vibrant neighborhood can be built with immediate effect, while not needing to raise new taxes or create additional stress on the City of Sacramento’s general fund.
The report also details significant one-time impacts, including over 39,000 construction-related jobs and $3.09 billion in construction wages. Signature components of the development include the Kaiser Permanente Medical Campus, Sacramento Republic FC’s new stadium, and the adaptive reuse of the historic Central Shops.
This once-in-a-generation project positions Sacramento as a national model for sustainable urban growth – bringing cultural, economic, and community vibrancy back to the historic heart of the city.
For more information, visit SacRepublicFC.com/ and Railyards.com.
