Sacramento Faces Major Housing Shortage for Middle-Income Buyers

The 2026 Housing Mismatch Report, a joint analysis by Realtor.com® and the National Association of Realtors®, reveals a substantial gap between available housing stock and what middle-income households can afford nationally. Buyers earning approximately $75,000 can afford homes up to about $261,140, yet properties priced below this threshold constitute only 23% of national listings, compared to 44% in a balanced market. This deficit translates to an estimated shortage of 311,000 listings accessible to these buyers. The report highlights that 36% of metropolitan areas exhibit a "Listing-Income Alignment Score" below 70%, indicating a critical lack of affordable options for lower- and middle-income households.

Sacramento, California, is identified as a metropolitan area experiencing a particularly acute housing shortage for middle-income earners. In March 2026, a mere 4.30% of Sacramento's housing listings were within the affordable range for this demographic. While this represents a slight improvement from the 3% recorded in March 2025, the market still requires an estimated 2,266 additional affordable listings to meet the demand from middle-income buyers. This situation underscores the challenges faced by a significant portion of the population in achieving homeownership.

The report introduces the Listing-Income Alignment Score as a novel metric to reframe the discussion around housing affordability. This score measures the congruence between the distribution of home listings and the income levels of potential buyers. A higher score signifies a market where the available homes are better aligned with the purchasing power of its residents. The analysis suggests that a lack of new construction and a high demand for existing homes contribute to the current affordability crisis, impacting various income brackets, but most severely affecting those in the middle-income range.