The City of Sacramento reported on Mar. 25 that housing production increased by more than 14 percent over the past year, according to the Housing Element Annual Progress Report presented to the City Council.
The annual report is required by the state and tracks progress toward Sacramento’s eight-year housing strategy for 2021-2029. The strategy aims to support housing at all income levels and meet a Regional Housing Needs Allocation (RHNA) goal of building 45,580 units by 2029.
Mayor Kevin McCarty said, “Sacramento needs more housing at all income levels. Through our Streamline Sacramento initiative, which makes it easier to build housing, and our Small Developer Incubator Program and ADU Resource Center, we are making major strides. But we still have work to do, and I remain committed to identifying and implementing the best solutions available to us.”
According to city staff, Sacramento produced 2,737 new units in 2025—a nearly fifteen percent increase from the previous year—representing about half of what is needed annually to reach its RHNA target. Of these units, a total of 930 were classified as affordable units. The number of accessory dwelling units (ADUs) also grew with permits issued for 390 such homes in the same period.
Senior Planner Greta Soos said, “While we are not producing enough housing annually to meet our Regional Housing Needs Allocation, it is encouraging to see an increase in production following four years of steady decline in housing development since 2020 due to the COVID-19 pandemic.”
Recent city efforts include improvements through Streamline Sacramento for permitting processes and support programs like the Small Developer Incubator Program and ADU Resource Center. Staff highlighted completed or ongoing projects across various Area Median Income (AMI) ranges that have received direct city investment.
Looking ahead, upcoming initiatives include proposed ordinances allowing “cottages on wheels” in backyards and enabling sales of ADUs as condominiums along with continued programming for small developers. The city plans to submit its annual progress report with updated data on programs and production figures by April 1.
