Building Costs Per Square Foot in the City of Sacramento (CA), USA

Residential Construction Market Analysis in the City of Sacramento (CA), USA

Established Newly Renovated House in Sacramento 29 Carvel PI CA95835 – 6 Bedrooms and 5 Baths with 4 Attached Garages on Gross Floor Area 4,878 sqft – Built in 2002 – Price $1,950,000

Building costs are 3% above the national average in the City of Sacramento in California. Having your own home is one of the biggest dreams that people have, but this does not mean that it is easy to achieve. If you ask your friends or loved ones who don’t own a home, they will most likely tell you how frustrated they are at not being able to buy one.

One of the most determining factors before buying a house is the price of the property, but this can vary widely according to each region. Therefore, a state may be expensive but have more affordable cities. This is the case in California and the city of Sacramento.

In this article, we will tell you everything you need to know about the real estate market in Sacramento, with information on upcoming projects, expected market values, and the current construction outlook for the city.

Sacramento (CA) Construction Outlook

Sacramento is one of the most picturesque cities in California. Of course, it doesn’t have all the spotlight that falls in Los Angeles or Hollywood, but it does have its own charm. In Sacramento you will have all the advantages of living in a state like California, but with greater peace of mind.

It is a city recommended for families, or for couples who are looking to form one. Even if your idea of family is a couple and a dog, Sacramento is the place for you. Their buildings have spacious apartments, and their condos/co-ops are suitable for a family to live comfortably.

In the case of single-family homes, they are also super comfortable with more than 3 bedrooms, a garage, and a large garden. Most do not have swimming pools since this is considered something more luxurious, but the truth is that if you want to install one it will not be something impossible to achieve.

Sacramento (CA) Housing Market Analysis and Forecast

The real estate market in Sacramento (CA) has certain peculiarities that make it unique. The first is that it is quite unpredictable, even for experts who have more years in the field. It is not easy to know what the exact numbers are, but an estimate can be made.

In the last year, the properties increased their price by 4%, even though the experts claimed that the increase would be 10%. In part, this miscalculation is attributed to the recent success of Fresno, another city in the same state. This caused all eyes to go to Fresno, being a cheaper place, and Sacramento (CA) was displaced.

However, not everything is negative in the Sacramento (CA) real estate market. In that city, there is an average sale time where properties usually take as little as 20 days to sell. In addition, it increased its inventory of houses for sale during the summer months, reaching 20% ​​more compared to the same period in 2021.

In some cities of Sacramento, the increases in values ​​were better, reaching 18% in Sacramento City and 20% in Roseville. Both locations have the best average growth in Sacramento (CA), with some properties selling for as much as 10% more than the list price. It is expected to increase up to 15% during 2023.

Sacramento (CA) Average House Price (Median Home Price)

The median home price in Sacramento is $460,000. In some places, like Sacramento City, the value is as high as $500,000. In fact, experts say that in the summer months of 2023 the entire city will have an average value of $500,000 or higher.

Remember that the median home price is obtained from the values ​​of all residential properties listed for sale, so there are properties that may have a higher price and others lower. The most determining factors are the area in which the property is located, the state, and the type of property it is.

In the case of single-family homes, the average value in Sacramento is $475,000, 1% more than last month, although its highest peak was in May when it reached $530,000. In the case of townhouses, these are not a type of property that is found in large quantities in Sacramento, so there are no exact numbers, but experts say that they exceed $330,000 in some cases.

Meanwhile, condos/co-ops in Sacramento have a median value of $370,000. This is the most variable value of all properties in Sacramento, making it very difficult to predict. If you take care to look at the statistics, you can see that it looks like a zig-zag that goes up and down, baffling the experts. In any case, an increase of even 5% is expected throughout 2023, although of course, it may be higher or lower.

In the case of values ​​in general, it is not expected that there will be any significant change between summer and winter. Like other cities in California, in Sacramento, there is movement in the real estate market all year round, so it can be expected that values ​​will remain stable.

Proposed Residential Building Projects in Sacramento (CA)

The projects that are coming in the next few years in Sacramento are quite common, especially when compared to those in Los Angeles or San Francisco. That does not make them less important or less relevant to the real estate market.

There are many condominiums in the projection. They are expected to be ready before spring 2023, just to be sold when the market hits a boom. In fact, they are projects whose properties are already for sale, but most people wait until they are completely ready before making the purchase, to see that the work is really done.

There are not many projected buildings in Sacramento, just a few in Sacramento City, that are no higher than 15 stories. These are mostly residential buildings. Don’t forget that companies in California don’t opt for office buildings, they choose campuses like those in Silicon Valley, so there aren’t many buildings in the pipeline.

There are some luxury homes outside of Sacramento. These are thought to attract all people with high incomes but who are not high enough to buy luxury homes in the most exclusive neighborhoods in California. These luxury homes have more than 5 bedrooms, and huge pools, and are fit for royalty.

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Building Costs Per Square Foot for Single Family Homes in the City of Sacramento (CA), USA

Building costs are 3% above the national average in the City of Sacramento in California.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Sacramento City ranges from $355.24 per sqft to $544.56 per sqft, with the average being $419.23 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Sacramento City ranges from $215.90 per sqft to $330.94 per sqft, with the average being $254.78 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Sacramento City ranges from $139.57 per sqft to $211.98 per sqft, with the average being $163.40 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Sacramento City ranges from $101.86 per sqft to $156.20 per sqft, with the average being $120.21 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Sacramento City ranges from $82.68 per sqft to $126.62 per sqft, with the average being $97.49 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Sacramento City ranges from $65.21 per sqft to $99.95 per sqft, with the average being $76.92 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.