Mortgage payments and other housing costs are rising for homebuyers in all communities in the Sacramento, California area. See how the difference compared to 2021.

Typical monthly housing costs for homebuyers in the Sacramento area have risen more than 50% over the past year, thanks to rising prices and skyrocketing mortgage rates.

A year ago, a typical single-family home in the Sacramento area was worth about $522,000, according to At that time, the average interest rate for a 30-year fixed mortgage nationwide was 3.02%. Assuming a 10% down payment, buyers buying a home at this price would face monthly payments of around $2,800, including property taxes, private mortgage insurance and home insurance.

Lately, the value of a typical single family home has reached around $632,000. More importantly, the average mortgage rate had risen to around 5.7%. This translates to monthly payments of approximately $4,300.

The change represents a huge shift in housing affordability. Financial advisers often say not to spend more than a third of your income on housing costs. At last year’s prices, that meant a household earning around $100,000 a year could afford a typical house in the area.

Today, that means a household would need to earn over $150,000 a year to afford a typical home. Only about 20% of Sacramento households earn more than $150,000, according to the latest census figures.

Sacramento’s Most Expensive Communities

The most expensive community in the area is Granite Bay, where the typical single-family home costs around $1.2 million. That translates to a housing payment of about $8,300 per month, up from $5,300 per month a year ago. To comfortably afford such a large housing payment, a household would need to earn about $300,000 a year.

The typical priced house in El Dorado Hills, Davis and Loomis would cost between $6,000 and $7,000 per month. A typical priced home in Folsom and Rocklin would cost between $5,000 and $6,000 per month.

Although these prices may seem high, they would be a bargain in the Bay Area. In metro San Francisco, the regular-priced single-family home is worth about $1.6 million, putting it out of reach for households earning less than $400,000 a year.

Sacramento’s mid-range communities

A year ago, buying a normal-priced home in Sacramento’s midrange communities would mean a monthly housing payment between $2,500 and $3,500.

Today, a monthly housing payment in these same communities will cost between $4,000 and $5,000.

Places like Elk Grove and Roseville, which have attracted middle-class households for much of the past decade, are quickly becoming out of reach. To comfortably afford a home in either of these two cities, a household would need to earn around $175,000 per year.

Sacramento’s Most Affordable Communities

Sacramento’s most affordable communities are too expensive for most area households.

The typical priced single-family home in South Sacramento’s Florin community is about $450,000, a price cheaper than any other large community in the area. This translates into monthly housing payments of approximately $3,100.

A household would need to earn about $110,000 a year to comfortably afford this house. The median household income in the Sacramento area is around $76,000. In the city, the median is about $66,000, according to the census.


Monthly housing payments are influenced by a complex combination of factors, including interest rates, the buyer’s credit ratings, insurance premiums and the amount of the buyer’s down payment. Any analysis to identify a typical housing payment is based on assumptions. Here are the assumptions used by The Bee:

House prices: The bee used Zillow’s Home Value Index for single-family homes for May 2021 and May 2022. That’s close to a median value — but a bit more complicated. Zillow suggests describing it as a “typical home value.”

Mortgage rates: The Bee used national average mortgage rates for June 24, 2021 and June 30, 2022 as reported by Freddie Mac.

Installments: According to the National Association of Realtors, the average down payment is about 7% of the home price for first-time buyers and 17% of the home price for repeat buyers. The bee assumes a deposit of 10%. A 20% down payment would reduce monthly housing costs by several hundred dollars, due to lower capital and the elimination of private mortgage insurance. For example, in the Sacramento area, monthly payments for a regular price home with a 20% down payment would be around $3,600, compared to $4,300 with a 10% down payment.

Private Mortgage Insurance: Homes purchased with a down payment of less than 20% of the home’s value generally require private mortgage insurance for several years. Freddie Mac says annual private mortgage insurance is typically between 0.36% and 0.84% ​​of the loan amount. The bee assumes annual PMI payments of 0.45% of home value.

Home insurance: According to, annual home insurance payments nationwide average about 0.58% of home coverage. However, the value of a house is the value of its dwellings and land. The bee assumed that the land represents about 30% of the value of a house and set the annual insurance costs at 0.38% of the value of the house.

Phillip Reese is a data scientist at The Sacramento Bee and assistant professor of journalism at Sacramento State. His journalism has won the George Polk and Worth Bingham Awards, and he was a finalist for the 2014 Pulitzer Prize for Investigative Journalism.

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