North Highlands Housing Update: Prices Ease as 370-Unit Affordable Project Advances

North Highlands, CA – March 22, 2026 – Home prices dipped year over year as new affordable housing plans and corridor rezoning efforts move forward.

Home prices in North Highlands are trending below last year, even as new housing proposals and zoning updates aim to expand supply along key corridors. February data shows a modest cooldown in pricing, while local officials and developers push forward with projects that could reshape the area’s rental inventory.

Top takeaways

  • Median sale price was about $381K in February, down 8.2% year over year.
  • Roughly 55 homes were listed for sale at the end of February.
  • A 370-unit affordable housing proposal has been filed along Watt Avenue.
  • County leaders are advancing corridor rezoning to allow more housing by right.

Market snapshot

According to Redfin, the median sale price in February 2026 was approximately $381K, marking an 8.2% decline compared with February 2025. The shift reflects softer pricing relative to last year’s levels, giving some buyers more negotiating room.

Inventory remains relatively tight. Zillow reported about 55 homes for sale as of late February. While selection is limited, the balance between buyers and sellers appears more even than during the peak market years. Sellers are encountering greater price sensitivity, and well-priced homes—particularly entry-level single-family properties—continue to draw the most activity.

Mortgage rate volatility and broader Sacramento-area affordability pressures are still influencing demand, keeping many households focused on value and monthly payment considerations.

Development pipeline

Earlier this month, Onyx Investment Group filed plans for a 370-unit affordable housing community along the Watt Avenue corridor. The proposal, reported in early March, would add a substantial number of income-restricted rental units if approved through Sacramento County’s review process.

In parallel, county officials are advancing zoning changes along major corridors, including North Watt Avenue. The updates are intended to permit more housing by right and reduce discretionary review requirements. The goal is to accelerate multifamily and missing-middle housing projects within existing commercial areas, potentially increasing long-term supply.

Together, the proposed affordable development and zoning adjustments signal continued public and private efforts to address housing availability, even as resale prices moderate year over year.

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