BIA-member homebuilders reported 474 sales during May, down 14% from April and up 4% from May 2025. Photo courtesy of North State Building Industry Association

SACRAMENTO REGION, CA (MPG) - New home sales in the greater Sacramento region remained steady during May despite continued affordability challenges and slightly higher mortgage rates, as members of the North State Building Industry Association reported 474 sales during the month.

Sales were down 14% from April and up 4% from May 2025, though both comparisons were affected by differing reporting calendars. On a weekly basis, builders averaged 119 sales per week in May, compared with 111 in April and 91 in May 2025. During an average May in the region, builders have reported 466 sales during the month since records began in 1997.

BIA President and CEO Tim Murphy said despite economic uncertainties and slightly higher mortgage interest rates, 2026 is shaping up to be a fairly normal year for the region’s homebuilders.

“Despite affordability challenges and economic uncertainty, the Sacramento region’s new home market continues to show steady underlying demand,” Murphy said. “Builders are adjusting to a market where mortgage rates in the 6% range may be the new normal, and incentives continue to help many buyers move forward. Builders also continue to benefit from limited existing-home inventory in many parts of the region.”

He added that affordability remains the biggest challenge, which is why reducing government fees and speeding up approvals remain critical priorities. 

In May, Rancho Cordova regained the top spot with 77 sales, with Roseville edging down to second place with 71 sales. Sacramento remained in third place with 55 sales, followed by Elk Grove with 53 and Natomas rounding out the top five at 41.

Sales were reported for 203 communities in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties.