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Thinking about buying property in Sacramento? 2025 might be your moment.
With a steady market, rising demand, and plenty of opportunities, this year offers compelling reasons to make your move.
Let’s explore why now is the time to invest in Sacramento real estate.
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) Sacramento's housing market is thriving with a huge (94.7%) occupancy rate
Sacramento's housing market is thriving, with the multifamily occupancy rate reaching 94.7% in Q2 2024, the highest since early 2023.
This low vacancy rate indicates strong demand and a competitive market, suggesting rising property values.
Investing in 2025 offers a strategic opportunity as demand outpaces supply, making it a favorable time for buyers to secure property before prices potentially increase further.
Source: Colliers
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2) In 2024, California is offering first-time homebuyers up to 20% for down payments
In 2024, California introduced the "Dream For All Shared Appreciation Loan" program, offering first-time homebuyers up to 20% of a home's price for down payments and closing costs, reducing barriers to homeownership.
The Sacramento Association of REALTORS® also hosted a First-Time Homebuyer Expo in April 2024, providing resources and guidance.
These initiatives suggest that 2025 could be an ideal time to buy property in Sacramento, with financial assistance and educational resources making homeownership more attainable.
Sources: Governor Gavin Newsom, The California Housing Finance Agency
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3) Sacramento's median home price increased to $520,000, up 2.0%
In October 2024, Sacramento's median home price was $520,000, a 2.0% increase from the previous year, indicating a stable real estate market.
This modest growth suggests 2025 could be a good time to buy, as prices are unlikely to drop suddenly.
Entering the market now may allow buyers to benefit from future appreciation, making it a strategic time to invest in Sacramento real estate.
Source: Redfin
4) In Sacramento, mortgage rates are expected to drop to 5.6% by late 2025, making home financing more affordable
In Sacramento, 30-year fixed mortgage rates are between 6.87% and 7.07% as of November 2024.
Fannie Mae projects these rates will drop to 6% by the end of 2024 and 5.6% by late 2025.
Lower rates make home financing more affordable, reducing costs and making monthly payments manageable.
This benefits first-time buyers and those upgrading or investing, likely expanding the buyer pool and increasing demand, which could raise property values.
With these favorable conditions, 2025 is an ideal time to buy property in Sacramento.
Sources: Investopedia, Yahoo Finance
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5) There is the Sacramento Regional Transit District's upgrade plan
The Sacramento Regional Transit District's new low-floor light rail vehicles and station upgrades will enhance accessibility and service frequency, boosting property values along transit corridors.
Efficient public transit attracts residents and businesses, increasing demand for nearby properties.
These improvements make commuting easier, appealing to homebuyers and renters who value access to work, school, and leisure without driving.
Properties near upgraded lines are likely to appreciate, making them smart investments.
With these developments, 2025 is an ideal time to invest in Sacramento real estate, as the city's transportation enhancements signal growth and improved quality of life.
Source: Sacramento Regional Transit
6) The Railyards Development will transform 244 acres into the largest sustainable infill project
The Railyards Development in Sacramento will transform 244 acres into the nation's largest sustainable infill project, featuring residential, commercial, and cultural spaces.
This development is expected to boost property values, making 2025 an ideal time to invest in Sacramento real estate.
The project aims to revitalize the city by creating a dynamic community hub, enhancing area appeal, and driving property demand.
As it progresses, surrounding neighborhoods will benefit from improved infrastructure and amenities.
Investing by 2025 aligns with the project's completion, offering early investors potential property value appreciation.
The Railyards is a catalyst for growth, presenting a strategic real estate opportunity.
Source: Railyards
7) Sacramento's tech industry boasts over 89,000 positions
Sacramento's tech industry is thriving, with over 89,000 positions, including 18,000 in computer system design.
This growth signals economic vitality and diversification, reducing reliance on a single industry and stabilizing housing demand.
The tech boom attracts high-paying jobs and professionals investing in real estate, boosting property values.
With a strong job market and growing population, 2025 is an ideal time to invest in Sacramento real estate, offering potential for solid returns.
Source: Greater Sacramento
8) Sacramento's population is projected to reach 531,630 by 2025, a 5.6% increase from 2020
Projections for 2025 estimate Sacramento's population to reach 531,630, a 5.6% increase from 2020, indicating sustained housing demand.
This growth highlights Sacramento's appeal due to its vibrant community, economic opportunities, and quality of life.
As the population rises, housing demand is expected to grow, making 2025 a strategic time for real estate investment.
The anticipated growth suggests strong housing demand and potential property value increases, encouraging potential buyers to act soon.
Sources: World Population Review, Aterio
9) Sacramento experienced a 54.9% year-over-year rise in home listings, providing buyers more choices
In September 2024, Sacramento saw a 54.9% year-over-year rise in home listings, with 1,898 homes for sale, indicating a shifting real estate market.
This increase offers buyers more choices and a balanced market, moving away from past intense competition and inflated prices.
With more inventory, sellers may negotiate more, benefiting buyers with better deals and strategic decision-making.
These conditions make 2025 a promising time to buy property in Sacramento, offering choice, value, and opportunity.
Source: Rental Housing Journal
10) Sacramento's nonfarm employment rose by 2.0%
In September 2024, Sacramento's nonfarm employment reached 1,096,700, a 2.0% increase from the previous year, indicating a thriving job market.
This growth boosts the local economy and housing demand.
A strong job market attracts businesses and residents, enhancing economic growth and property values, making 2025 an ideal time to invest in Sacramento real estate.
With a solid job market, buying property now could lead to appreciation as the area develops.
Sacramento's economic outlook makes it a compelling choice for property investment.
Source: Bureau Of Labor Statistics
11) There is the Sacramento's Urban Forest Plan, backed by nearly $2 million in federal funding
Sacramento's Urban Forest Plan, supported by nearly $2 million in federal funding, aims to enhance green spaces and air quality.
This initiative focuses on increasing the city's tree canopy, which reduces urban heat, filters pollutants, and provides energy-saving shade.
These improvements can boost neighborhood desirability and property values.
With these developments, 2025 is a promising time to invest in Sacramento real estate, as the city's commitment to sustainability and livability is likely to increase property appreciation.
Source: Mayor's Office Of Community Engagement City Of Sacramento
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So, is it a good time to buy in Sacramento? Yes, it is!
2025 is shaping up to be an excellent year to invest in Sacramento real estate.
With a 94.7% multifamily occupancy rate as of Q2 2024, the market is thriving, indicating strong demand and potential for rising property values. The introduction of California's "Dream For All Shared Appreciation Loan" program offers up to 20% for down payments, making homeownership more accessible. Additionally, the median home price increase to $520,000 reflects a stable market, suggesting prices are unlikely to drop suddenly.
Mortgage rates are expected to drop to 5.6% by late 2025, making financing more affordable and expanding the buyer pool. The Sacramento Regional Transit District's upgrades and the Railyards Development project are set to boost property values, while the tech industry's growth, with over 89,000 positions, signals economic vitality. With a projected population increase to 531,630 by 2025, housing demand is expected to rise, making it a strategic time to invest.