As a Sacramento-area realtor, I spend every day helping clients navigate a market that’s changing faster than ever. And while the dream of homeownership is still very much alive here, the reality is that our region continues to face a significant housing crisis — one shaped by affordability challenges, limited supply, and shifting economic forces. Understanding these trends can help you make better decisions, whether you’re thinking about buying, selling, investing, or simply preparing for the future.
Over the past few years, Sacramento has seen one of the sharpest affordability declines in the state. According to recent housing reports, more than 54,000 low-income renter hahouseholds in Sacramento County do not have access to an affordable home. For many families, rising rents are outpacing wages, and the average renter now needs to earn over $34 per hour just to afford the median asking rent. This gap between income and housing cost is the heart of the affordability problem — and it affects the entire market, not just renters.
On the ownership side, affordability is equally strained. While the region has been building more homes — over 12,500 new units were constructed in 2024, the most since 2005 — it’s still not enough to meet demand. SACOG estimates the region needs more than 278,000 new homes by 2050 to keep pace with our growing population. Despite the progress, much of the new construction is priced out of reach for entry-level buyers. This means inventory remains tight, competition stays strong, and prices continue to hold steady even as interest rates fluctuate.
Another major part of the housing crisis is homelessness. The good news is that the 2024 Point-in-Time count showed a 29% decrease in Sacramento County’s unhoused population — a rare bright spot in California. Investments in shelter beds, tiny-home communities, and outreach programs are making a difference. Still, more than 6,600 people remain without stable housing, and the pace of developing long-term supportive housing is far too slow. Local leaders estimate that at the current rate, it could take a century to house everyone who needs help. This challenge impacts neighborhoods, local resources, and the overall quality of life — making it a community-wide issue, not just a housing one.
But it’s not all doom and gloom. The Sacramento region is also becoming a leader in smart land-use planning and infill development. New projects like the Monarch affordable housing community, which converts unused state land into new homes, show what’s possible when the public and private sectors work together. ADUs (accessory dwelling units) are also gaining momentum, offering homeowners a way to build equity, create rental income, and help increase the local housing supply.
As a realtor, my biggest takeaway is this: Sacramento is changing, and those who understand the trends will be best positioned for success. Whether you’re buying your first home, thinking about upgrading, or considering an investment property, now is the time to get informed and take advantage of opportunities while the market is still evolving.