Sacramento is expected to see sustained growth into the 2020s – despite a contracting residential sector.
Instead, this growth is expected to come from robust investment in infrastructure and healthcare. Similar to the national capital, Sacramento’s status as California’s capital city means sustained demand for government facilities and insulation from economic shocks. Around one in five workers is a government employee of some kind – and therefore enjoy higher-than-average wages and steady employment. Trade workers in Sacramento grew by almost 10% over 2021, as the city likely pulled workers from nearby markets that were still stagnant.
Thanks to its status as California’s capital, Sacramento brings workers from across the country to its myriad government agencies. To retain this talent, it has invested in green energy and mixed-use developments. Many city agencies are hoping that they can compete with Silicon Valley by offering employees something that they cannot get in San Francisco or Cupertino: affordable, mixed-use housing and short commute times.