Sacramento is the center of some pretty serious housing buzz as of late. The city rooted in agricultural farming, state government, and intersected waterways is being hailed as one of the fastest-growing cities and a major player in urban living. 

Per Curbed, the city is thriving and exceeding the growth of other California cities at 1.4 residents per year, despite being famously referred to as a “cow town” by former basketball player Charles Barkley. 

According to 2013 census data, about 119,000 people commute from Sacramento to the Bay Area every day. That’s significant when considering Sacramento homes average $228 per square foot as compared to the Bay Area’s $531 per square foot. That makes the state capitol an obvious draw to homeowners being squeezed out of the market by their place of work.

The flip side is that the influx is already causing problems. The Sacramento Association of Realtors has revealed that as Bay Area buyers flood the market, competition is heating up for much of the city’s housing stock, be it classic Victorians or new builds. All of which is driving average prices higher ($317K in April from $311K in March) and taking inventory off the market in an astounding average of eight days. 

The Railyards Project / Rendering Courtesy of LDK Ventures

Even as the market starts moving in the direction of the Bay Area’s, plenty of new units are currently being built and high-profile projects are underway in Downtown Sacramento. In the past 26 months, $530 million in real estate transactions have taken place in a 10-block radius. Meanwhile, 80 businesses have moved their offices there and employment has jumped 40 percent. 

The centerpiece of Sacramento’s urban growth is The Sawyer, a luxury hotel that includes 45 condos and major retail, all of which connects directly to the Golden 1 Center, home of the NBA’s Kings franchise.

Also notable is The Railyards project. This 224-acre development will transform the historic Union Pacific yards into a massive urban lifestyle environment complete with a mass transit hub. Plans call for 10,000 residential units, 700,000 square feet of retail space, five-million square feet of office space, a 1,000 room hotel, and a hospital. The site also has potential to be the home of a new Major League Soccer team, depending on whether or not they’re granted a franchise. 

Continuing the trend, more housing is also underway in Midtown, Curtis Park, and West Sacramento.