Permits & Housing Production in Sacramento: What You Need to Know in 2025

As Sacramento continues its rapid evolution into one of California’s most desirable and livable metropolitan hubs, permits and housing production have become central to its growth strategy. Whether you’re a first-time buyer, seasoned investor, or someone looking to sell my house, understanding how the local permitting process and housing pipeline work is critical. It impacts everything from home values and affordability to neighborhood livability and future development opportunities.
In this detailed guide, we’ll explore the current state of Sacramento’s housing production, permit approvals, zoning trends, challenges, and what it all means for buyers and sellers in 2025.
1. Why Permits Matter in Real Estate
Permits—whether for new construction, renovations, or accessory dwelling units (ADUs)—are essential for maintaining safety, quality, and compliance in housing development.
In Sacramento:
- Building permits are issued by the city or county depending on jurisdiction.
- Permits are required for major work such as electrical, plumbing, HVAC, additions, or structural changes.
- Projects without permits may not pass inspection, affecting resale value, insurance, and mortgage eligibility.
For developers, obtaining timely permits is crucial to bringing homes to market. For homeowners, having permitted improvements protects the long-term value of your investment.
2. Sacramento’s Housing Goals & State Mandates
Sacramento’s housing production is shaped by both local planning efforts and California state mandates like the Regional Housing Needs Allocation (RHNA). Between 2021 and 2029, Sacramento is expected to produce over 45,000 housing units, including affordable and market-rate homes.
Current RHNA Allocation for the City of Sacramento:
- Very Low-Income: ~10,000 units
- Low-Income: ~6,500 units
- Moderate-Income: ~7,000 units
- Above Moderate-Income: ~21,000 units
As of 2025, Sacramento is falling short of these targets—especially in affordable housing categories—due to a mix of bureaucratic delays, rising construction costs, and neighborhood pushback.
3. Permit Trends in Sacramento (2023–2025)
Residential Permits Issued:
According to recent data from the City of Sacramento:
- 2023: Roughly 4,800 housing units permitted (primarily multi-family)
- 2024: Permits slowed slightly to ~4,200 due to interest rate hikes and financing issues
- 2025 projection: Expected rebound with state funding and zoning reforms kicking in
Permit Processing Time:
- Single-family home permits: 6–8 weeks on average
- Multi-family/commercial mixed-use: 4–12 months, depending on size and complexity
- ADUs: Streamlined to 4–6 weeks under SB 9 & SB 10 reforms
The City of Sacramento has adopted a Digital Permitting Portal to speed up approvals and improve transparency. This is a great move for those looking to build or renovate quickly.
4. Where Are the New Homes Being Built?
Top Areas for New Housing in Sacramento:
- North Natomas: Known for planned communities and newer infrastructure
- The Railyards: A major urban infill site with high-density, mixed-use construction
- South Sacramento: Affordable housing hubs, including many infill and ADU projects
- Downtown & Midtown: Focused on vertical, multi-family developments
If you're a first-time buyer, keep an eye on neighborhoods with new permit activity, as these often offer move-in-ready inventory and developer incentives.
5. Zoning & Housing Density Reform
To address the housing crisis, Sacramento is implementing zoning reforms to promote higher density and mixed-use projects.
Recent changes include:
- Elimination of single-family-only zoning: Duplexes, triplexes, and fourplexes now allowed in all neighborhoods
- Streamlined ADU approvals: Thanks to state laws SB 9 and SB 10
- Transit-Oriented Development (TOD) incentives: Faster permits near light rail or major bus corridors
These changes are unlocking more buildable land and encouraging infill development—a win for urban sustainability and housing affordability.
6. Key Challenges Facing Housing Production
While progress is being made, Sacramento still faces several obstacles that slow down permits and new housing development:
A. Neighborhood Opposition
Many established communities resist high-density developments due to traffic, parking, or aesthetic concerns. This can delay projects, even after permits are submitted.
B. Rising Construction Costs
Labor shortages, supply chain issues, and material costs have led to budget overruns that delay or kill projects altogether.
C. Financing Difficulties
Higher interest rates in 2024–2025 have made developers cautious about starting new projects. Pre-leasing and pre-sales are often required before funding is secured.
D. Limited Staff in Planning Departments
Despite digitization, city agencies remain understaffed, causing slowdowns in permit reviews and inspections.
7. Tips for Homeowners: Navigating the Permit Process
If you're planning to sell your house, renovate, or build an ADU, here are some important tips:
a) Always Check Zoning First
Visit the City of Sacramento’s Planning Portal to confirm your zoning and what’s allowed.
b) Use Licensed Contractors
Only licensed professionals can pull permits. Avoid unpermitted work—it can result in fines and low appraisals.
c) Document Everything
Keep all plans, receipts, permits, and inspection approvals in a digital folder. It simplifies things when you decide to sell your home.
d) Consider Pre-Sale Inspections
They help verify that past renovations were permitted and compliant. This can increase buyer confidence.
8. What Buyers Need to Know About Permits
If you're a first-time buyer in Sacramento:
- Always
ask for documentation of past permits during inspections.
- Focus on homes with recent permits and modern upgrades—they’re often more energy efficient and code-compliant.
- Consider areas with ongoing development; they may offer newer homes at better prices.
A knowledgeable agent can help you evaluate the true value of a property based on its permit history and future neighborhood plans.
9. The Role of a Realtor in Navigating Permits & Production
Whether you're buying new construction, renovating, or planning to sell your house, working with the best realtor in Sacramento gives you an edge. Here's how:
- Market Insight: Knows which areas have the most new construction and what’s coming down the pipeline.
- Permit Guidance: Can help connect you with local contractors and planners.
- Valuation Strategy: Ensures your upgrades or new builds will boost ROI.
The right real estate agent isn’t just a salesperson—they’re your partner in navigating Sacramento’s evolving housing landscape.
Conclusion: Sacramento’s Path to Growth Through Permits & Housing
Sacramento’s future depends on how well it can manage its permitting process and accelerate housing production. While challenges remain, zoning reforms, technological advancements, and market incentives are moving the city in the right direction.
If you're looking to learn more about buying, selling, relocating or get the best real estate experience in the Sacramento area, get in touch with CJ Domondon. His team can provide valuable insights and guidance to help you navigate the market. You can contact CJ Domondon directly to schedule a consultation or discuss your real estate needs.





