The City of Sacramento presented its Housing Element Annual Progress Report to the City Council on Mar. 25, showing a more than 14% increase in housing production over the past year.
The report is required by the state and tracks progress toward the city’s eight-year housing strategy for 2021-2029. The plan aims to encourage and support construction at all income levels, with a goal of meeting Sacramento’s Regional Housing Needs Allocation (RHNA) of 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.”
In 2025, Sacramento produced 2,737 new units—a 14.7% rise from the previous year—covering about 48% of the annual target needed to reach its RHNA goal over eight years. Of these units, there were 930 affordable homes built and continued growth in accessory dwelling units (ADUs), with permits issued for another 390 ADUs.
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 streamlining permitting processes through Streamline Sacramento, supporting small-scale development via the Small Developer Incubator Program, and providing resources through the ADU Resource Center. The city is also working on new initiatives such as ordinances that would allow “cottages on wheels” in backyards and permit sale of ADUs as condominiums.
City staff will submit this year’s progress report to California’s Department of Housing and Community Development by April 1 as part of ongoing compliance with state requirements.
