Let’s cut the crap about Sacramento’s housing market.
While your realtor’s busy posting inspirational quotes on Instagram and telling everyone “it’s a great time to buy!” (when the hell isn’t it, according to them?), I’m here to give you the unfiltered truth about which Sacramento neighborhoods are actually worth investing in and which ones are money pits disguised as “up-and-coming” opportunities.
I’ve talked to appraisers, mortgage brokers who’ve had a few too many drinks, and longtime residents who’ve watched their neighborhoods transform. Here’s what they won’t tell you at the open house.
THE ACTUAL GEMS WORTH YOUR MONEY
OAK PARK (BUT ONLY NORTH OF BROADWAY)
Everyone’s been screaming about Oak Park’s “renaissance” for a decade now. Here’s the reality: North Oak Park has legitimately transformed. The triangle bordered by Broadway, Stockton, and 14th Avenue has seen property values triple in some spots over the last 8 years.
Why it’s worth it:
- Still relatively affordable entry points ($450-650K for decent homes)
- Genuine community vibe with neighbors who actually talk to each other
- Walking distance to some legitimately good spots (Fixins, Oak Park Brewing)
- The Oak Park Farmers Market isn’t overrun with influencers… yet
- Solid rental returns if you’re looking to invest (7-9% annual appreciation)
The catch: South of 14th Avenue is still very much in transition. Don’t believe realtors who say “it’s just like North Oak Park!” It’s not. The crime stats tell a different story, and the infrastructure investment hasn’t made it down there yet.
TAHOE PARK
While everyone was obsessed with Midtown and East Sac, Tahoe Park quietly became one of the smartest investments in the city. It’s not flashy, and that’s precisely why it’s a good buy.
Why it’s worth it:
- Solid 1950s-60s construction that doesn’t hide major issues like newer builds
- Lots with actual yards (a rarity in this market) • 15 minutes to downtown without the downtown prices
- Strong community association that actually gets shit done with the city
- Steady 5-6% annual appreciation without the wild swings
The catch: The area around 14th Avenue can still be rough. And yes, you’ll occasionally hear, “Tahoe Park? Isn’t that by the hospital?” from people who haven’t updated their mental map of Sacramento since 1995.
CURTIS PARK (IF YOU CAN AFFORD IT)
Yes, it’s expensive. Yes, it’s worth it. Curtis Park has consistently held value through every market downturn because it offers what wealthy buyers want: character, walkability, and neighbors who have the disposable income to maintain their properties.
Why it’s worth it:
- Gorgeous historic homes that aren’t falling apart (unlike some in Midtown)
- Walkable to both Land Park and Oak Park amenities • The schools actually perform well (a Sacramento rarity)
- Rock-solid investment that will weather any market correction
- The kind of neighborhood where you can actually borrow a cup of sugar
The catch: Entry point is steep ($750K+ for anything decent). The Curtis Park neighborhood association has been known to fight over the color of your fence for six months. And good luck finding parking if you’re near the Sierra 2 Center during events.
POCKET/GREENHAVEN FOR THE LONG HAUL
It’s not sexy. It’s not trendy. Your hipster friends will make fun of you. But the Pocket/Greenhaven area is one of the most financially sound investments in Sacramento if you’re planning to stay put for 7+ years.
Why it’s worth it:
- More house for your money than anywhere else in the city proper
- Excellent schools that actually have funding • Low crime rates that aren’t just statistical tricks
- Stable, steady appreciation that doesn’t crash when the market hiccups
- Surprisingly good international food scene hiding in strip malls
The catch: It’s suburban as hell. You’ll need a car for everything. And the architecture is about as exciting as a TPS report. But your investment will be solid.
THE OVERPRICED TRAPS THEY’RE TRYING TO SELL YOU
MIDTOWN (ESPECIALLY ANYTHING NEWLY BUILT)
I can hear the outrage already. “But Midtown is the heart of Sacramento! The nightlife! The restaurants!”
Yes, and you’ll pay a 40% premium for the privilege of being woken up by drunks at 2 AM and having nowhere to park. Midtown is for renting, not buying – especially those new “luxury” developments.
Why it’s a trap:
- Absurd price-per-square-foot ($500+) for shoddily built new construction
- Those cute historic buildings? Plumbing and electrical nightmares
- Street parking is getting worse every year as the city adds more “traffic calming” features
- You’re paying top dollar for the smallest yards in the city • The first neighborhood to crash when the market corrects
The exception: If you can find a well-maintained historic home on a quiet block with dedicated parking, AND you plan to stay 10+ years, it might be worth it. But those are unicorns.
NATOMAS (ALL OF IT)
Realtors love to segment Natomas into “North,” “South,” and “West” as if they’re completely different worlds. They’re not. The entire area was built on a floodplain with cheap materials during the housing boom, and it shows.
Why it’s a trap:
- Flood insurance costs that realtors conveniently “forget” to mention
- Cookie-cutter construction with corners cut everywhere you can’t immediately see
- Horrible traffic bottlenecks that turn your “quick downtown commute” into a daily nightmare
- Chain restaurant hell with few local businesses that survive
- The first area to tank in value during economic downturns (check the 2008 crash data)
The exception: There isn’t one. If you’re dead-set on Natomas, rent don’t buy.
EAST SACRAMENTO (THE NEWER PARTS)
Old East Sac (the Fabulous 40s) will always hold value. But the eastern edges that realtors try to lump in with “East Sac” are wildly overpriced for what you get.
Why it’s a trap:
- You’re paying East Sac prices for what is essentially Tahoe Park
- The “East Sac” name adds a 15-20% premium for identical houses just blocks apart
- Lots are tiny compared to true East Sac properties
- You get all the East Sac property taxes with none of the actual East Sac amenities
The exception: If you find something east of Elvas but west of 65th that needs work, and you’re handy, you might build equity through sweat. Otherwise, look elsewhere.
WEST SACRAMENTO “RIVERFRONT”
The development along the river in West Sacramento has been hyped as “the next big thing” for 15 years. While some projects have succeeded, many buyers have found themselves paying premium prices for the privilege of watching development plans stall repeatedly.
Why it’s a trap:
- Wildly optimistic pricing based on what the area “will be” someday
- Thin walls in those modern-looking condos (hope you don’t mind hearing your neighbor flush)
- Retail spaces that sit empty for years because the foot traffic isn’t there
- You’re paying for a view that construction cranes will block for the next decade
The exception: If you’re buying with a 15-20 year horizon and can stomach the uncertainty, some of these properties might eventually pay off. But it’s a gamble, not an investment.
THE SLEEPER NEIGHBORHOODS NOBODY’S TALKING ABOUT
COLONIAL HEIGHTS
Sandwiched between Oak Park and Tahoe Park, Colonial Heights offers similar housing stock to both but at a 10-15% discount. It’s been overlooked because it doesn’t have a trendy name or a high-profile business district, but that’s exactly why it’s a smart buy.
Why it’s worth watching:
- Solid 1940s-1950s construction with good-sized lots
- Close enough to Oak Park amenities without Oak Park prices
- Diverse, stable community without the rapid gentrification
- Steady appreciation without speculation-driven spikes
TALLAC VILLAGE/LAWRENCE PARK
This little pocket near the Arden-Arcade border flies under the radar, but it offers some of the best value in the city. The mid-century homes here have character, yards, and prices that make East Sac buyers weep.
Why it’s worth watching:
- Mid-century homes with “good bones” under $500K
- Established trees and actual yards
- Quiet streets that aren’t used as thoroughfares
- Close to both Arden and East Sac amenities without the price tag
ELMHURST
Everyone knows about East Sac, but its little neighbor Elmhurst offers similar charm at a significant discount. The area around T Street and 53rd has gorgeous trees, well-maintained homes, and a genuine neighborhood feel.
Why it’s worth watching:
- Architectural character similar to East Sac at 20% less cost
- Walking distance to UC Davis Med Center (great for rentals)
- Established neighborhood with pride of ownership
- Still flying under the radar for many buyers
THE HARD TRUTH ABOUT SACRAMENTO REAL ESTATE
Here’s what your realtor won’t tell you over charcuterie at the open house: Sacramento’s market is fundamentally changing. The days of buying anywhere in the city and watching values skyrocket are over.
The Bay Area exodus that drove our prices up 30% during the pandemic has slowed. Remote work policies are tightening. Interest rates aren’t going back to 3% anytime soon.
What this means: Neighborhood selection matters more than ever. The “rising tide lifts all boats” market is gone. Some areas will continue to appreciate steadily; others will stagnate or decline.
The winners will be neighborhoods with:
- Established infrastructure (good schools, parks, grocery stores)
- Walkability to at least some amenities
- Pride of ownership visible on the street
- Diversified resident demographics (not just one age group or income level)
- Homes with character that can’t be mass-produced
The losers will be:
- Cookie-cutter developments with nothing unique to offer
- Areas dependent on speculative future development
- Neighborhoods with absentee landlords and declining maintenance
- Places where amenities are all a drive away
- Areas with only one economic driver (like being near a single large employer)
THE BOTTOM LINE
Sacramento isn’t the “cheap alternative to the Bay Area” anymore. We’re our own market with our own dynamics, and buying here requires actual strategy now, not just a pulse and a pre-approval letter.
The neighborhoods worth investing in are those with inherent, lasting value – community, character, location, and livability – not just whatever’s being hyped as “hot” right now.
Do your homework. Drive the streets at different times of day. Talk to actual residents. Check the flood maps. Look at school ratings even if you don’t have kids (they affect resale). And for God’s sake, get an inspection from someone not recommended by your realtor.
Sacramento has great places to live and invest. Just make sure you’re buying one of them, not just whatever your realtor is desperate to unload this month.
P.S. If your realtor gets offended by this article, you probably need a new realtor.
And if you are struggling to save for that home check out our post on cutting expenses down here!
