August 7, 2025 / Author: the Railyards
Moving to Sacramento? Find out why Sac is the top destination for relocation in the nation.
Moving to Sacramento? Sacramento’s housing market is offering stability in 2025, with increased inventory, more affordability compared to the nearby San Francisco Bay Area, and supported by local policies that foster future housing supply.
Increased Inventory in Sacramento
Sacramento’s housing inventory was up 46.1% in June from one year earlier, according to the Sacramento Association of Realtors, and up 6.7% from the previous month.
Sacramento policies are contributing to the increased housing inventory in the region. For example, Sacramento’s Missing Middle Housing Interim Ordinance, became the first in the State to allow multi-unit housing in all single-family neighborhoods.
The MMH Ordinance allows housing types that are “middle” in form and scale, between single-family houses and larger apartment buildings, enabling them to blend well into existing residential neighborhoods.
Find an apartment for rent in The Railyards.
Median Home Price in Sacramento
In 2025, the median sold home price in Sacramento County is $522,000, according to Realtor.com, just under the $549,000 median listing price.
Did you know? Sacramento is the top U.S. destination for homeowners looking to relocate.
How Does Sacramento Compare vs. Other California Markets?
Sacramento offers notable affordability compared to coastal markets. Because of its proximity to the Bay Area, Sacramento is often compared to the San Francisco Bay Area market.
San Francisco and San Mateo County mid-tier homes average about $1.5 million, nearly three times Sacramento’s median price. Even Sacramento luxury homes under $1.7 million cost less than many mid-tier Bay Area properties.
Sacramento is more affordable when compared to the Los Angeles Metro or the San Francisco Bay Area markets. Compared to the Central Valley, Sacramento has higher housing prices, yet offers more job opportunities and growth compared to Fresno and Bakersfield.
Los Angeles Metro
- Median price around $835K, making it among the least affordable metro areas in the state.
- Inventory statewide rose 44% in early 2025, easing pressure but affordability remains strained.
San Francisco Bay Area
- Mid-tier homes $1.5M, with the luxury market stretching even higher ($6.2M in top tiers).
- Inventory increases are leading to price declines at per-square-foot levels, but affordability remains critically low.
Sacramento
- Median price is $522,000, making the region more affordable compared to Coastal markets.
- Housing inventory increased 40%. Job growth is strong at nearly triple the statewide pace.
Fresno–Bakersfield (Central Valley)
- Median prices typically around $350K–$400K, substantially below Sacramento, offering better entry-level affordability.
- Region offers more limited job growth and less economic opportunity than Sacramento.
Sacramento Addresses Affordable Housing
California mid-tier homes are about twice as expensive as the typical U.S. home. Even a bottom-tier home in California is now about 30% more expensive than a mid-tier home in the rest of the U.S.
While housing costs can vary dramatically based on location, Sacramento does tend to offer more affordability in both rents and monthly mortgage payments compared to other markets, including coastal counties, Napa, Sonoma, and El Dorado counties.
Sacramento is taking measures to increase housing inventory and to find solutions to affordable housing challenges.
In May 2025, ground broke at the Monarch in Sacramento – the city’s third affordable housing community created on excess state land. The Monarch community will transform a former state-owned storage warehouse into 241 homes for low- to extremely low-income Sacramentans.
Last July, the Sacramento City Council approved $3 million to support affordable housing development through its “Zero-Dollar Rate” program, which waives fees for development and construction of affordable housing units. The program has successfully supported eight affordable housing projects, resulting in the construction of 313 units.
In The Railyards infill development, The Wong Center opened in 2024, providing affordable housing for seniors. The successful completion of the Wong Center illustrates how public-private collaboration can drive affordable housing solutions.
The project brought together the City of Sacramento, via the Sacramento Housing and Redevelopment Agency), which provided loans from the General Fund and Measure U funds; the State of California, which contributed Low-Income Housing Tax Credits and tax-exempt bonds; the Wong Center Board of Directors, which added funding; and a land donation and contribution from Downtown Railyard Ventures. This broad coalition of public, private, and nonprofit partners brought 150 affordable housing units to Sacramento for seniors, who can be particularly vulnerable to homelessness.
The Sacramento housing market makes the region an attractive destination for those looking to relocate, whether from the nearby Bay Area or across the country. Are you making the move to Sacramento?
