December 11, 2020
California’s capital topped a national list of housing markets expected to take off in 2021.
Sacramento, California has recently been named “next year’s hottest housing market,” according to Realtor.com.
Sacramento has attracted an influx of homebuyers this year, especially from the Bay Area as people continue to work from home. Situated about 90 minutes away from San Francisco by car, Sacramento makes for an ideal location for Bay Area workers who are looking to stay relatively close to the office without the hefty price tag of Bay Area rent. For reference, homes in Sacramento average around $284 per square foot, while a unit in San Francisco averages at about $679.
The median home price in Sacramento currently sits at $554,000, according to Realtor.com, although the website anticipates this to increase by 7.4% in the upcoming year. Besides the surge in homebuyers in the region, Sacramento’s housing market is likely to see a rise in prices from the continued low interest rates and an insufficient supply of houses to meet the growing demand.
Even with the higher prices, the number of home sales in California’s capital is expected to increase by 17.2% next year. Sacramento homes will still be remarkably cheaper than rental units in the Bay Area, as well as more spacious. Sacramento also boasts an up-and-coming food and entertainment scene, increasingly attracting more homebuyers in the region.
Marissa Saldivar // CIRB Journalism Intern // email@example.com