Whether you’re considering a career switch to real estate or looking to grow your existing business, understanding the nuances of each neighborhood in your target area is essential. Here’s what you need to know about the Sacramento real estate market.
Let’s take a look at the overall Sacramento economy and real estate market trends. Then, we’ll provide details about neighborhoods that have potential for real estate agents.
Key Takeaways
- Sacramento’s Market Is Booming – With 7.2% YoY price growth and 33.5% more homes sold, demand remains strong.
- Top Neighborhoods for Agents – Areas like Meadowview, East Sacramento, Land Park, South Natomas, and Arden-Arcade offer diverse opportunities.
- Higher Earning Potential – Sacramento agents earn $121,244 on average. Agents can maximize income by building a strong network, choosing the right brokerage, and getting quality education through Allied Schools.
- Keys to Success – Networking, choosing the right brokerage, and quality education are essential for thriving in the market.
Overview of Sacramento, CA
Sacramento, the capital of California, serves as an economic and governmental hub, drawing a steady influx of new residents. According to Macrotrends, the current population of Sacramento is 2,269,000. The population has increased by an average of 1.3% each of the last four years.
It’s little wonder that people are moving to Sacramento. With government offices, healthcare facilities, and a growing tech presence, the city offers stable employment opportunities (that fuel housing demand). Its central location within California makes it a desirable choice for those seeking affordability without sacrificing connectivity.
Key Sacramento Stats:
- Unemployment Rate: 4.9% (FRED, November 2024)
- Average Household Income: $102,258 (World Population Review, 2024)
- Cost of Living: 25% higher than the national average (PayScale, 2025)
Sacramento offers a diverse real estate landscape that appeals to a wide range of residential buyers. The city has something for everyone — from urban condos to spacious suburban homes. As a real estate professional, understanding the unique characteristics of Sacramento’s various neighborhoods—ranging from the treelined streets of East Sacramento to the vibrant downtown corridor—is essential for connecting buyers with their ideal homes.
Introduction to the Sacramento, CA Real Estate Market
The housing market in Sacramento, CA, is strong. According to current Redfin statistics, in February 2025, the median sale price of a home in Sacramento is an even $485,000 (up 7.2% YoY!). Unlike other communities where higher prices lead to sluggish sales, the number of homes sold in December 2024 was up 33.5% YoY.
While this high-level overview of the Sacramento real estate market is valuable for California real estate agents, having a deep understanding of local market conditions is essential to best serve your clients.
How to Choose the Right Target Neighborhood for Your Real Estate Business
Selecting the right neighborhood for your real estate business involves more than just looking at average home prices. If every agent focused solely on high-value areas, places like Curtis Park—where the average home value is $704,872 (Zillow, February 2025)—would be oversaturated with agents.
Before diving into the specifics of Sacramento’s neighborhoods, consider these key factors when choosing the best area to grow your real estate business:
1. Market demand & sales activity
- Focus on neighborhoods with strong buyer demand and high transaction volume.
- Review historical data on home sales, price appreciation, and average days on the market.
2. Price point
- Decide whether you want to work in luxury, mid-range, or entry-level markets.
- Higher-priced homes may yield larger commissions, but lower-priced properties often sell more frequently.
3. Growth & development trends
- Look for areas experiencing economic growth, new construction, and infrastructure improvements.
- Proximity to job centers, schools, and amenities can drive long-term property value.
4. Target client demographics
- Choose neighborhoods that match your ideal clientele—first-time buyers, investors, luxury clients, etc.
- Consider demographic trends like income levels, household size, and lifestyle preferences.
5. Competition & market saturation
- Research the number of active agents and brokerages in the area.
- A highly competitive market can be challenging, while an underserved area may offer more opportunities.
6. Rental vs. homeownership trends
- If you specialize in investment properties or property management, areas with high rental demand may be ideal.
- Neighborhoods with higher homeownership rates may provide steadier opportunities for traditional home sales.
7. Personal interest & expertise
- Selecting a neighborhood where you have experience, knowledge, or a personal connection can make marketing and client interactions more authentic.
By evaluating these factors, you can strategically choose a neighborhood that aligns with your expertise, business goals, and market potential—helping you build long-term success in real estate.
Top Sacramento Neighborhoods for Real Estate Agents
What is the best neighborhood in Sacramento for real estate agents? That depends on your niche, target demographic, and interest. (For example, do you specialize in rentals? Luxury homes? First-time homebuyers?)
Regardless of your specialty, here are some trending neighborhoods that may deserve a glance.
1. Meadowview, California
- Average home value: $403,213 – up 2.5% YoY (Zillow, February 2025)
- Meadowview is at the southern tip of Sacramento. It’s popular for many reasons, including that it provides a (relatively) quick commute to the Bay Area and affordable home prices compared to nearby regions.
2. East Sacramento, California
- Average home value: $751,671 – up 1.7% YoY (Zillow, February 2025)
- East Sacramento is a highly walkable neighborhood known for the Fab 40s – a segment of East Sacramento with grand treelined streets and beautiful, unique homes. East Sacramento is one of the safest areas of the city.
3. Land Park, California
- Average home value: $794,647 – up 1.0% YoY (Zillow, February 2025)
- Land Park is home to the Sacramento Zoo and other family-friendly attractions. It’s known for having distinct-style homes and many events and festivals throughout the year.
4. South Natomas, California
- Average home value: $447,683 – up 1.4% YoY (Zillow, February 2025)
- South Natomas is a highly accessible neighborhood near downtown Sacramento, making it a convenient choice for commuters. Known for its affordable housing options compared to other parts of the city, it attracts first-time buyers, young professionals, and investors looking for rental properties.
5. Arden-Arcade, California
- Average home value: $507,091 – up 2.3% YoY (Zillow, February 2025)
- Arden-Arcade is situated just east of downtown Sacramento, offering easy access to major highways and business districts. The neighborhood features a mix of mid-century homes, luxury estates, and modern apartments, catering to various budgets. It’s also close to Sacramento State University, top-rated private schools, and numerous parks and recreational areas.
Related: Learn about the housing market in Los Angeles.
Income Potential and Career Opportunities
Real estate still offers a worthwhile career path with high income potential.
Real estate agents in California typically work on commission based on the property’s sale price. How much do real estate agents make in Sacramento? The average salary of a real estate agent in Sacramento is $121,244, according to Indeed, February 2025. Compare this with the average salary of real estate agents in California, which is $200,000, according to our 2025 California Real Estate Salary Guide.
Tips for Succeeding as a Real Estate Agent in Sacramento
If you want to capitalize on Sacramento’s steadily growing housing market, now is the time to take action. Here are some essential tips to help you get started as a real estate agent.
Tip 1: Build a strong local network
Successful real estate agents develop extensive networks, both within and outside the industry. Establish connections with local businesses, community leaders, and other professionals to strengthen your presence in the market.
Tip 2: Interview multiple brokerages after you earn your license
In California, real estate agents must work under a supervising broker. Before committing to a brokerage, ask questions and explore various options to find the best fit for your goals. Consider the advantages and challenges of working with both large and small firms.
Tip 3: Choose the right real estate school
Allied Schools provides all the courses you need to obtain and maintain your California real estate license. With options for livestream and self-paced learning, our packages include audio narration, exam prep materials, and a course textbook. Financing is available—start your pre-licensing coursework today to take advantage of the growing Sacramento real estate market!
