June 24, 2025 / Author: the Railyards
The Sacramento Railyards is an example of successful urban infill as new projects bring new life to a historic district.
Sacramento’s Railyards infill development project is transforming 244 acres of historic railroad land into a thriving new district with residential, commercial, retail, healthcare, and entertainment projects.
What is Urban Infill? Urban Infill Definition
Urban infill development is building on underutilized land within an urban area. That may include building on vacant lots, rehabilitating historic buildings for new purposes, or developing new homes and businesses on underutilized sites.
The Sacramento Railyards is an example of urban infill development: a former railroad industrial site is being redeveloped into a multi-use district that is effectively doubling the size of Downtown Sacramento.
The Sacramento Railyards: An Urban Infill Case Study
From the 1863 groundbreaking of the Central Pacific Railroad at Front and K Streets to the 1870 invention of the nation’s first ice-cooled freight car that rolled out of the Sacramento Shops, the Railyards were once the industrial center of the West. In the early 1900s, one-third of Sacramento workers were employed at the railyards.
By the 1990s, the last remaining rail maintenance and repair operations were relocated east to Roseville, California, and only east-west traveling freight and passenger trains remained.
The 244-acre industrial site remained unused for decades, many of the structures and buildings demolished. Only a handful of the original central shops buildings remained.
Today, the Sacramento Railyards district is buzzing with activity.
As of June 2025, two housing projects, The AJ and The Wong Center, have been completed and Kaiser Permanente broke ground on an 18-acre medical campus.
The new Sacramento Courthouse is nearly complete.
Construction on the Paint Shop live music venue and Sacramento Republic FC soccer stadium are anticipated to begin in 2025.
Strategic Location for Economic Development
The Railyards area is strategically located between the Central Business District and the Sacramento River.
Developing the Railyards presented an opportunity to remove the barriers between Downtown and the River District, move away from patterns of decentralization and urban sprawl, and become a catalyst for regional growth and economic development.
An economic analysis projects thousands of jobs and billions in economic impact as a result of the Sacramento Railyards infill development, including the creation of nearly 24,000 total regional jobs and $2.1 billion in annual wages across the county.
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.
Financing The Railyards
In June 2025, the Sacramento City Council unanimously approved an Enhanced Infrastructure Financing District (EIFD) as a financing tool to capture a portion of future tax growth within the district to reinvest in current infrastructure needs, supporting:
- Transit connectivity and upgrades
- Roadway and circulation improvements, connecting the district with neighboring districts
- Affordable housing initiatives
- Public spaces and investments in parks, plazas, and green spaces
From Historic Site to Successful Infill Study
The Sacramento Railyards is a once-in-a-generation project and one of the nation’s largest examples of infill development. The 244-acre site is moving full speed ahead as of 2025, with decades of anticipated growth coming to fruition. As a national model of infill development, The Railyards is showing how sustainable urban growth can foster cultural, economic, and community vibrancy.
