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With its steady growth and high demand, Sacramento offers fantastic real estate investment opportunities in 2025.
Read this article to see why it’s worth considering. And if you’re ready to make your move, check out our Sacramento real estate investment spreadsheet to plan your next steps.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) The Sacramento Railyards project will double downtown's size
The Sacramento Railyards project will transform a 244-acre site, doubling downtown Sacramento's size with 12,000 housing units, 2.9 million square feet of office space, 1.9 million square feet for retail and commercial use, and 41 acres of parks.
This development is expected to boost property values by attracting diverse residents and businesses, creating a self-sustaining community.
Investing in Sacramento's real estate in 2025 offers a promising opportunity due to the project's potential to enhance downtown appeal, stimulate economic growth, and increase property demand.
Sacramento's real estate market is set for a bright future.
Source: Wikipedia
- Yes, 2025 is a good time to buy property in Sacramento
2) Sacramento's $1.3 billion infrastructure boost is set to elevate property values
In 2024, Sacramento invested over $1.3 billion in transportation infrastructure, including rail, transit, bridges, highways, and pedestrian pathways, as part of a broader effort to modernize California's public transit.
Sacramento International Airport is also undergoing a $1.3 billion expansion, adding new gates, a pedestrian walkway, and a parking garage to handle more passengers.
These projects aim to enhance transportation, support regional growth, and make Sacramento more attractive to residents and businesses.
Consequently, investing in Sacramento's real estate market in 2025 is promising, with infrastructure improvements expected to boost the economy, quality of life, and property values, attracting new residents and businesses.
Sources: California State Government, Wikipedia
3) Sacramento homes sold in just 20 days, highlighting a hot market with strong demand and investment potential
In October 2024, homes in Sacramento sold in an average of 20 days, indicating strong market demand and buyer interest.
This rapid turnover reflects sustained interest due to the city's growing economy and attractive lifestyle, drawing new residents and investors.
The vibrant job market and population influx suggest continued housing demand and property appreciation, offering solid returns.
Investing in Sacramento real estate in 2025 is promising, with quick sales reducing depreciation risk and enhancing capital growth and rental income potential.
Sacramento remains a competitive and lucrative real estate market.
Source: Redfin
4) Sacramento's booming job market (+32,400 jobs) is driving up housing demand
The Sacramento metro area saw a significant employment increase, with 1.06 million nonfarm employees, up by over 32,400 jobs from the previous year, according to the U.S. Bureau of Labor Statistics.
This job growth strengthens the local economy and boosts the real estate market by attracting more residents, increasing housing demand, and raising property values and rental rates.
Sacramento's diverse employment sectors, including government, healthcare, and technology, enhance economic stability, making it an appealing destination for homeowners and renters.
This stability ensures consistent occupancy and reliable rental income, reducing investment risks.
Thus, investing in Sacramento's real estate market in 2025 offers promising opportunities for both short-term gains and long-term security.
Source: Bureau of Labor Statistics
5) Sacramento's median home price rose 2.0% to $520,000, signaling a vibrant market with strong growth potential
In 2024, Sacramento's median home price increased by 2.0% to $520,000, indicating a growing real estate market with healthy housing demand.
This rise is driven by the city's expanding economy, population growth, and appeal as an affordable, vibrant place to live near major employment hubs.
These factors sustain housing demand and support property value increases.
Investing in Sacramento's real estate in 2025 offers a promising opportunity, with the market poised for further appreciation and potential significant returns.
Source: Redfin
6) Sacramento's median rent of $2,233, with a 1.8% increase, highlights a hot market with stable rental income
Sacramento's real estate market shows a median rent of $2,233, with a 1.8% year-over-year increase, indicating rental prices are keeping pace with inflation.
This steady rise suggests consistent demand, minimizing financial risk for landlords and ensuring properties remain occupied.
Low vacancy rates and a favorable price-to-rent ratio further enhance the market's appeal, making Sacramento a promising investment opportunity in 2025 due to stable rental income and supportive conditions.
Sources: U.S. Real Estate News, U.S. News Housing Market Index
7) Sacramento's price-to-rent ratio of 19.4 offers a balanced and lucrative real estate market for investors
Sacramento's real estate market has a price-to-rent ratio of 19.4, indicating a balanced market ideal for investors.
This ratio suggests a harmonious relationship between property prices and rental income, making Sacramento competitive compared to pricier coastal cities with ratios over 25.
The city's ratio falls within the favorable range of 16 to 20, highlighting its potential as a lucrative market.
Modest growth in rents and property values further underscores market stability, offering a promising opportunity for steady rental income and property appreciation.
Sacramento's balanced ratio provides a solid foundation for long-term investment success.
Sources: RedFin, Apartments
8) Sacramento's foreclosure rate is impressively low (one in every 4,244 households)
Sacramento's foreclosure rate is notably low, with one in every 4,244 households facing foreclosure, compared to the national average of one in every 1,217.
This indicates financial stability, suggesting homeowners can meet mortgage obligations, reducing investment risk and attracting investors.
A low foreclosure rate signals a robust local economy and stable real estate market, likely leading to stable or appreciating property values.
For investors, this means a safer environment with reduced risk of market downturns.
In 2025, Sacramento's real estate market offers a promising investment opportunity, with financial stability and potential for property value growth.
Source: Saunders APC
9) The US 50 Corridor Plan might help boosting property demand and values
The US 50 Comprehensive Multimodal Corridor Plan aims to transform a 58-mile stretch of Sacramento's transportation infrastructure, improving congestion, safety, and accessibility.
This project will enhance connectivity between neighborhoods and business districts, boosting property demand and real estate values.
Improved transportation networks attract more homebuyers and businesses, increasing real estate values as demand rises.
The US 50 Corridor Plan is expected to elevate the region's attractiveness.
Investing in Sacramento's real estate market in 2025 is promising, with anticipated growth from the plan.
Early investments could yield significant returns as the area becomes more connected and accessible.
Source: SACOG
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So, is Sacramento real estate a great investment in 2025? Absolutely!
Sacramento's real estate market in 2025 is brimming with potential, making it a fantastic investment opportunity.
With the Sacramento Railyards project set to double downtown's size, adding 12,000 housing units and 2.9 million square feet of office space, property values are expected to rise. The city's $1.3 billion infrastructure boost further enhances its appeal, improving transportation and attracting new residents and businesses.
Homes selling in just 20 days highlight strong demand, while a booming job market, with 32,400 new jobs, drives housing needs. The median home price increase to $520,000 and a low foreclosure rate of one in every 4,244 households underscore market stability.