According to the Sacramento Bee, real estate industry analysts believe millennials are starting to become a big part of the homebuying market. A CoreLogic analysis shows the number of millennial homebuyers has increased by 62 percent over the last four years. 

The oldest of the millennials are now 37, and they are buying more homes nowadays than Generation X and Baby Boomers, who are currently between 38 and 72 years old. And as millennials collectively get older, more and more will be buying homes in the coming years. Sacramento is an increasingly attractive option to this demographic. 

The city’s neighbor to the southwest, Silicon Valley, is known for its skyrocketing home prices that seem to have no end, spurred on by the boom of the tech industry. Sacramento, by comparison, offers far more affordable homes that are still located within proximity to the coveted region. The median home price for an existing home in Sacramento County came out to $350,000 in March—a good chunk less than the multi-million dollar homes seen around the Bay Area. But as more homebuyers catch on to the great deals in Sacramento, those prices are going up, too. When the median home price hit $350,000 in March, it was the highest the county had seen in 11 years.

Typical California home

Sacramento County officials are recognizing the importance of targeting millennials when building new homes. The Sacramento Area Council of Governments has said that the city needs a wider array of homes in a wider range of prices. The government also believes that one housing unit should be built for every two new jobs in the city. Right now, the rate of home development in the capital region is only producing one housing unit for every six new jobs created.

"Limited housing supply is driving up housing prices in the region, making it difficult for many millennials—especially first-time buyers—to buy a home or compete with buyers who can offer more upfront," Kacey Lizon, planning manager for the Sacramento Area Council of Governments, wrote. 

Developers themselves are also recognizing the value of building homes for millennials. Millennials are looking for communities with lots of amenities, not just stand-alone homes. Neighborhoods like North Natomas and Tahoe Park are within close proximity to the downtown area and feature a variety of amenities such as parks, walking trails, local shops, restaurants and bars, and recreational facilities. With features like that, millennials just might come running.