Housing report highlights increase in Sacramento housing production

City staff recently presented the Housing Element Annual Progress Report to the City Council, showing housing production in Sacramento increased by more than 14% over the past year.

The report is state-mandated and details progress toward the City’s 2021-2029 Housing Element goals. The Housing Element is the City’s eight-year housing strategy. It outlines goals, policies and implementation programs to incentivize and support housing at all income levels to help meet the City’s Regional Housing Needs Allocation (RHNA) of 45,580 units by 2029.

“Sacramento needs more housing at all income levels,” said Mayor Kevin McCarty. “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.”

In 2025, the City produced 2,737 units, representing a 14.7% increase over 2024. This is approximately 48% of the 5,698 units that need to be built annually to meet the RHNA of 45,580 units over the eight-year planning period.

A total of 930 affordable units were produced, and accessory dwelling units (ADUs) continued to increase, with 390 units permitted in 2025.

“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,” said Senior Planner Greta Soos.

The City has made recent efforts to increase housing development, including improvements to the permitting process with the Streamline Sacramento initiative, support for smaller-scale housing development through the Small Developer Incubator Program, and continued assistance through the ADU Resource Center.

During the presentation, staff also highlighted projects with direct City investments that are completed or underway across a range of income levels, known as Area Median Income (AMI), including:

Rodeway Inn (Powell’s Landing): 70 units of permanent supportive housing for people experiencing homelessness and those with behavioral health needs (completed in 2025)
Kind South: 108 units at 80% AMI (completed in 2026)
Bridge Housing: 124 units at 30-60% AMI, with 34 units designated for people experiencing homelessness (under construction)
Gateway East and West: mixed-income development featuring 131 units at 80-120% AMI and 65 units at 60-80% AMI (under construction)
Donner Field: senior housing with 67 units at 30-60% AMI, with 17 units designated for people experiencing homelessness (under construction)

To continue efforts to expand housing, the City is working on upcoming initiatives, including proposed ordinances to allow “cottages on wheels” in backyards and enable the sale of ADUs as condominiums, as well as continued Small Developer Incubator programming.

City staff will submit the 2025 Annual Progress Report to the California Department of Housing and Community Development by April 1. Required each year, the report includes housing production data and updates on the City’s housing programs.

For more information, please visit the Housing Element webpage.

Pictured is the Kind South development in south Sacramento.