As recently as a decade ago, many California residents thought of Sacramento as Silicon Valley’s sleepy neighbor that happened to house the state government. Now, California’s capital is quickly emerging from the coastal Bay Area’s shadow to become the hottest housing market in Northern California. 

What’s driving this sudden growth? One of the most significant factors at play is the real estate crisis going on in the Bay Area. Sky-high prices are out of reach for many families, yet the demand for a home in the region is only driving prices higher. Multi-million dollar homes are commonplace and homes below the million-dollar mark are a rarity, per a report by East Bay Times. 

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According to the Sacramento Bee, a median-priced home in the state’s capital will set a buyer back approximately $330,000, making Sacramento County an increasingly appealing option for frustrated Bay Area buyers. 

According to recent census data, 20,000 people a year are relocating to the Golden State’s capital. Bay Area residents are among the people leaving in droves to the welcoming arms of Sacramento, which has been developing more and more homes to meet the demand, according to a Mercury News article.

Take The Creamery, for example. The newly developed community features 122 modern single-family homes targeting buyers who can afford the price tags in the high $400,000s.

Buyers are acting on the good deals quickly. The average Sacramento home spends just eight days on the market, per Curbed SF.

It isn’t just real estate experiencing a boom here. Signs of the city’s economic renaissance are everywhere. Downtown Sacramento’s business district has been thriving in recent years, and the area even has a trendy nickname: DoCo, short for Downtown Commons.

The city has also gained a massive new arena, the Golden 1 Center, on the site of former Downtown Plaza shopping center. The Golden 1 Center development also features a 250-room luxury Kimpton hotel, 45 luxury condos in The Residences at The Sawyer, a large Macy’s, and a state-of-the-art sports facility.

Even the Sacramento Boardwalk is getting a makeover for the first time since 1986, according to the Downtown Sacramento Partnership.

Perhaps the most promising project of all is The Railyards — a 224-acre development that’s one of the largest such developments currently in the United States. The project will see a former terminal of the country’s first transcontinental railroad become a mixed-use site for commercial and residential space, and even a few museums.

There’s still plenty more to come, including a potential MLS franchise for the city to call its own. Buyers who have found themselves priced out of San Francisco, San Jose, and Oakland would be wise to look to put their preconceived notions aside and look to Sacramento now before it’s too late.