Sacramento

CASacramento–Roseville–Arden-Arcade

Real Estate Market Analysis

Q3 2025 Report
$487,500 (March 2025)
Median Home Price
~525,000 (city); ~2.4 million (metro area)
Population
$85,928[2]
Median Income
Sacramento City Unified School District: mixed ratings (average to above average)
School District Rating

Market Overview

Property Values

$487,500 (March 2025)
Median Home Price
$339
Price per Sq Ft
+1.1% (March 2025, SoFi); -1.5% (May 2025, Zillow)
YoY Change

Market Performance

Days on Market20 days median (SoFi); 12 days to pending (Zillow)
Market TypeLeaning toward balanced, but still a seller's market[1]
Months of SupplyNot specified, but inventory is up year-over-year and market is shifting toward balance[1]

Sales Activity

Sales Volume672 homes sold in February 2025 (down 12% YoY)[1]
Metro AreaSacramento–Roseville–Arden-Arcade
Population~525,000 (city); ~2.4 million (metro area)

Economic Indicators

Employment & Growth

Unemployment RateNot specified for 2025; historically 4.5%-5% range
Job Growth RateZillow forecasts zero jobs per new home permitted for 2025[4]
Median Household Income$85,928[2]

Major Employers

  • State of California
  • Sutter Health
  • UC Davis Health
  • Kaiser Permanente
  • Intel
  • Blue Diamond Growers

Demographics

~525,000 (city); ~2.4 million (metro area)
Population
36.2[2]
Median Age
Healthy, steady growth; continues to attract new residents[2]
Population Growth
37.9% college educated[2]
Education Level

Family Composition

54% homeowners, 44% married[2]

Key Industries

GovernmentHealthcareEducationTechnologyAgriculture

Education

School District

Sacramento City Unified School District: mixed ratings (average to above average)
District Rating

Top Schools

  • West Campus High School
  • Mira Loma High School
  • CK McClatchy High School

Higher Education

  • California State University, Sacramento
  • UC Davis (nearby)
  • Sacramento City College

Infrastructure & Development

Major Projects

  • Sacramento Valley Station expansion
  • Aggie Square innovation district (UC Davis)
  • Downtown Railyards redevelopment

Transportation

  • Light rail modernization
  • I-5 and Highway 50 upgrades

Planned Developments

  • Mixed-use projects in downtown and West Sacramento
  • Affordable housing initiatives

Lifestyle & Amenities

Recreation

  • American River Parkway
  • Discovery Park
  • Numerous bike trails

Dining & Entertainment

  • Midtown dining scene
  • Old Sacramento Waterfront
  • Golden 1 Center (NBA, concerts)

Cultural Attractions

  • Crocker Art Museum
  • California State Railroad Museum
  • Farm-to-Fork events

Investment Analysis

Investment Opportunities

  • Entry price point lower than Bay Area[2]
  • Steady population growth
  • Strong rental demand

Growth Outlook

Stable, with modest appreciation or flat pricing expected through 2025[2][3][4]

Market Risks

  • Flat to slightly declining home values in 2025[3][4]
  • Rising interest rates
  • Affordability constraints for buyers

Rental Market

Strong demand, especially for single-family rentals and multifamily units

Marketing Intelligence

Target Demographics

  • Young professionals
  • Families relocating from Bay Area
  • First-time buyers

Marketing Channels

  • Online listings (Zillow, Redfin)
  • Social media (Instagram, Facebook)
  • Local real estate events

Pricing Strategies

Price at or just below recent comps to attract multiple offers in competitive segments

Common Objections & Response Strategies

Objection: Homes are unaffordable for many buyers

Response Strategy:

Highlight Sacramento's relative affordability versus Bay Area and discuss down payment assistance programs

Objection: High interest rates make monthly payments difficult

Response Strategy:

Educate on rate buydown options, adjustable-rate mortgages, and potential for refinancing later

Objection: Market feels uncertain or risky

Response Strategy:

Share data on Sacramento's long-term stability and rental demand; emphasize lower volatility than coastal California markets

Professional Recommendations

1

Educate buyers on local affordability and financing options

2

Price listings competitively based on current comps and trends

3

Leverage professional marketing and staging to stand out

4

Target Bay Area and remote worker relocators

5

Stay informed on infrastructure and school developments to advise clients

6

Prepare sellers for longer days on market and fewer bidding wars than 2021-2022

Competitive Analysis

Comparable Markets

  • Fresno
  • Riverside
  • Stockton
  • Bakersfield

Market Positioning

Sacramento is positioned as an affordable alternative to Bay Area and Southern California markets, with steady demand and moderate price volatility

Competitive Advantages

  • Lower median home price than Bay Area and coastal metros
  • Strong government and healthcare job base
  • Relative affordability attracts relocators

Price Comparison

Median home price in Sacramento ($487,500) is significantly lower than San Francisco ($1.2M+) and San Jose ($1.4M+), but higher than Central Valley peers

Investment Metrics

4.5%–5.5% for single-family rentals (2025 est.)
Cap Rates
4%–5% gross yields typical
Rental Yields
~18–20 (favorable for investors compared to Bay Area)
Price-to-Rent
Positive cash flow possible in select neighborhoods, especially with 20%+ down payment
Cash Flow
Flat to +2% for 2025; long-term outlook stable
Appreciation

Buyer Journey Insights

First-Time Buyers

Face affordability and down payment challenges; benefit from local assistance programs and FHA/VA options

Move-Up Buyers

Motivated by family needs and job changes; may be cautious due to higher rates and limited equity growth

Downsizers

Seek low-maintenance homes and active adult communities; inventory remains limited in these segments

Investors

Focus on single-family and small multifamily rentals; prioritize cash flow and stable tenant demand

Relocators

Attracted by affordability, job opportunities, and lifestyle; often compare Sacramento to Bay Area and SoCal

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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