Will Rising Homebuilding Fees Increase Sacramento Housing Prices in 2026?

Will Rising Homebuilding Fees Increase Sacramento Housing Prices in 2026? | Team Ostrode

The Sacramento area real estate market continues to change, and one trend gaining attention is the increase in homebuilding fees across the region. These fees, paid by builders to local governments, play a key role in funding infrastructure and community services, and they are becoming an important factor shaping housing supply and affordability in Sacramento, Placer, and El Dorado counties.

According to a recent analysis by Economic and Planning Systems for the North State Building Industry Association, homebuilding fees now average about $109,000 per new home in the Sacramento region. Over the past five years, fees have increased approximately 24 percent in Sacramento County and 30 percent in El Dorado County, with standard-sized lots often carrying the highest costs.

While higher fees can impact construction budgets, they also reflect continued investment in roads, utilities, schools, and public services that support long-term growth and neighborhood stability.

How Rising Fees Affect Buyers, Sellers, and Agents

For buyers, increased development costs can influence pricing on new construction, particularly at the entry-level price point. For sellers, limited new housing supply can help support property values in established neighborhoods. For agents, understanding these dynamics is critical when explaining pricing trends and inventory challenges to clients.

At the same time, industry leaders and local governments are actively working toward balanced solutions. Conversations are focused on refining fee structures, streamlining approval timelines, and exploring incentives that support housing production while keeping affordability in focus. These efforts aim to encourage continued development and create more housing opportunities throughout the region.

Why This Matters for Your Business

Rising homebuilding fees are not just a construction issue. They are a market signal that affects inventory levels, pricing strategy, and buyer expectations. Agents who stay informed can better position themselves as trusted advisors, offering clarity and context in a market where headlines often feel uncertain.

As the Greater Sacramento region continues to grow, these discussions point toward smarter development and sustainable housing solutions, which ultimately benefit homeowners, communities, and real estate professionals alike.

Have questions about the Sacramento housing market?
Team Ostrode is your local resource for real estate insight across Sacramento, Placer, and El Dorado counties. Reach out today and let’s talk about what’s next.

Scott Ostrode

DRE 01241383

916-799-1662

Scott@TeamOstrode.com

www.teamostrode.com