Sacramento Housing Market: Trends & Prices (2021)
Sacramento Real Estate Market Overview
(Last Updated – 12/2021)
Sacramento is most famous for being the capital of California, but this city has much more to it than just historic appeal.
For one, it has a lot of open space: An impressive 83% of residents are able to walk to a park within 10 minutes. So, while there are plenty of landmarks and historic spots to visit, you can also check out some of the 259 parks and playgrounds, lakes, fishing piers, golf courses, and other fun spots that take advantage of Sacramento’s 269 sunny days a year.
The latest census data shows that Sacramento’s population grew by over 12.5% since 2010. But there’s a price to pay. According to the Council for Community and Economic Research’s 2021 Q2 Cost of Living Index, the cost of living in Sacramento is roughly 22% above the national average. A meaningful portion of that is due to housing, which runs over 39% above the national average.
Recommended: Cost of Living in California (2022)
Cost aside, Sacramento has a lot to offer for new graduates and career-focused individuals. Sacramento landed the 36th spot on a Wallethub list of best cities to start a career. The city is also seeing employment bounce back.
Overall Sacramento Market Trends
According to the real estate professionals at Redfin, Sacramento is one of the most competitive housing markets in the country.
Homes were selling quickly here in 2021. In the latter part of the year, most homes were selling in around 10 days and hot homes, six days. Most homes in Sacramento receive multiple offers and sell for around 2% above list price.
$468,000
Median Sale Price
$318
Avg. Price Per Square Ft.
10 days
Avg. Time on Market
Sacramento Housing Market Forecast
The Sacramento real estate market had been on the rise for nearly a decade but was especially hot in 2021. The median house price rose by 16% in a year, and experts forecast that prices will continue to increase, given the tight inventory.
A big reason for Sacramento’s popularity is because it remains cheaper than neighbors like San Francisco and San Jose. On top of that, with more people working remotely, real estate experts predict that strong buyer demand will continue and the City of Trees will remain one of the nation’s hottest housing markets.
Impact of Covid-19 on the Sacramento Housing Market
The Sacramento housing market had been rising at a solid year over-year-pace for the better part of the past decade when the pandemic hit in March 2020. According to local real estate data, Sacramento home sales then plummeted for several months because of lockdowns and general upheaval caused by Covid.
However, as more people sought to escape dense urban areas and lower their cost of living, Sacramento’s housing market began to rebound. Sacramento saw a $415,000 median price in June 2020 — a historic high. More sales pending along with historically low inventory in the second half of 2020 led to a period when the number of homes sold outpaced listings.
Over the summer of 2021, overheated home prices began to cool as sales fell off a bit and active listings began to climb. Despite this, real estate agents still reported receiving multiple offers.
Demographics of the Sacramento Market
While each neighborhood in Sacramento has its own unique demographics, attractions, and market temperature, it’s worth checking out the Sacramento market as a whole before diving deeper into each neighborhood.
Median Income: $62,335
Median Age: 34.5
College Educated: 33.1%
Homeowners: 48.5%
Married: 43.4%
Popular Sacramento Neighborhoods
There are dozens upon dozens of neighborhoods to choose from among the great expanse of Sacramento.
Over half a million people call Sacramento home, and the Sacramento County area has over 30,000 businesses.
Here are fast facts about five of Sacramento’s popular neighborhoods if you’re thinking about putting down roots here.
Midtown
From farmers markets to art to a bustling restaurant and festival scene, Midtown has it all. This neighborhood is perfect for families, is full of tree-lined streets, and is very bike-friendly.
The median housing costs each month are roughly $1,170, and there are nearly 2,400 housing units in this neighborhood.
Quick Facts
Population:
3,885
Median Age:
33
Housing Units:
2,391
Bike Score:
98
Walk Score:
88
Transit Score:
53
Average Household Income:
$86,884
Midtown Housing Market
While housing prices dropped slightly in the past year in Midtown (4.8%), it’s still considered a competitive housing market, with many homes receiving multiple offers and most selling in around 10 days.
Median Sale Price
$749,000
Average Price Per Square Ft.
$504
Tahoe Park
Locals and food critics alike swear up and down that stopping by Bacon & Butter in the Tahoe Park neighborhood for brunch is a must, especially if you love cinnamon buns.
If you want to walk off a heavy meal, the obvious appeal of living in Tahoe Park is the access to, well, Tahoe Park. The park has basketball, volleyball, softball, and soccer courts and fields, as well as a pool and play areas to enjoy.
Quick Facts
Population:
4,287
Median Age:
35
Housing Units:
1,730
Bike Score:
71
Walk Score:
58
Transit Score:
36
Average Household Income:
$63,997
Tahoe Park Housing Market
If you want to buy a home in Tahoe Park, be prepared to face some steep competition. In a very competitive housing market, Tahoe Park homes often receive multiple offers, sell in eight days, and sell for about 2% above list price.
Really in-demand homes can sell in around six days and sell for around 5% above list price.
Median Sale Price
$500,000
Average Price Per Square Ft.
$462
Land Park
If you have your heart set on a historic home, then check out some of Land Park’s beautiful options from the 1930s and ’50s.
Close proximity to William Land Park and the Sacramento Zoo makes this neighborhood a family favorite. Children will love Fairytale Town, a storybook-themed park.
Quick Facts
Population:
8,817
Median Age:
39
Housing Units:
4,081
Bike Score:
89
Walk Score:
63
Transit Score:
43
Average Household Income:
$102,308
Land Park Housing Market
In Land Park’s very competitive housing market, it isn’t unusual for homes to get multiple offers and to sell in around 15 days. Popular homes can sell in just around six days.
Housing prices dipped in this area in late 2021, which may contribute to why it remained a competitive market.
Median Sale Price
$690,000
Average Price Per Square Ft.
$547
Natomas
Close proximity to two major freeways and the Sacramento International Airport gives Natomas residents plenty of travel options.
And with more than 2.8 million square feet dedicated to retail, there are plenty of shopping and employment opportunities.
There are also some large office parks and educational facilities that can help residents reach their goals. It sounds like go-getters will feel right at home in Natomas.
Quick Facts
Population:
30,076
Median Age:
32.2
Housing Units:
10,880
Bike Score:
66
Walk Score:
41
Transit Score:
26
Average Household Income:
$82,668
Natomas Housing Market
The Natomas housing market is hot. The average sale price of homes in this neighborhood rose over 60% since last year.
You may want to act fast if you find a home you love in this area, as homes typically sell for about 3% above list price and go pending in around nine days.
Median Sale Price
$538,000
Average Price Per Square Ft.
$274
Elk Grove
From simple starter homes to sprawling ranch estates, Elk Grove has it all. This family-friendly neighborhood is home to more than 170,000 residents and has around 52,000 households.
An award-winning school district, world-class restaurants, and a bustling international airport lend further appeal.
Quick Facts
Population:
170,825
Median Age:
37.5
Housing Units:
54,635
Bike Score:
46
Walk Score:
32
Transit Score:
N/A
Average Household Income:
$112,140
Elk Grove Housing Market
Get ready to roll up your sleeves and get to work if you want to find the perfect home in Elk Grove. The market is considered to be very competitive. Most homes receive multiple offers and sell around their list price in nine or so days.
In-demand homes can sell in around just six days for 6% above list price.
Median Sale Price
$610,000
Average Price Per Square Ft.
$312
SoFi Home Loans
It’s easy to see why Sacramento has become such a popular market to buy a home in. There are some really amazing neighborhoods to choose from whether you’re young and single or have a family to look after.
If you think Sacramento could be your home sweet home, then you may need to consider different mortgage loans during your home buying process.
If you’re buying a home or refinancing an existing mortgage, SoFi can help you make the process as quick and painless as possible.
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