Sacramento’s housing market has slowed in pace, yet prices remain supported. This episode explains why.

Inventory in Sacramento County remained between 1.7 and 2.5 months for most of 2025. Even as days on market increased, overall supply never expanded to levels that typically produce broad price declines. New construction continues at a measured pace. Land availability is limited. Zoning changes take time. Labor and material costs remain elevated. These structural realities keep supply constrained.

At the same time, demand has not disappeared. Household formation continues. Sacramento has experienced steady in-migration from higher-cost regions. A large share of the population remains in prime household-forming years. The region’s employment base supports income stability, reinforcing long-term housing demand.

This episode walks through:

• What supply actually means in practical housing terms

• Why limited inventory continues to support pricing

• The difference between longer days on market and price weakness

• How scattered-site development and infill contribute gradually

• Why demand remains present even when rates shift behavior

• How pricing adjusts within a constrained market

Understanding how supply and demand interact provides clarity. Housing markets adjust through time and negotiation before they adjust through price.

The objective is informed expectations grounded in structure, not headlines.

Next week’s episode:

Housing Policy Shapes Availability Before It Shapes Price