Dive Brief:
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The Sacramento (CA) City Council this week unanimously approved the development of a 3,000-home, 600-acre walkable master planned community near the Sacramento International Airport, The Sacramento Bee reported.
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Newport Beach, CA-based Integral Communities’ Greenbriar development will include 2,400 first-time and move-up homes, 500 rentals and 200 units targeting low-income seniors, as well as retail, public parks, swimming pools and a community center.
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Initially approved in 2008, the project was put on hold when the federal government suspended building in the Natomas Basin. The recession also factored into the delay. The council hopes the project will help to alleviate the city’s inventory shortage.
Dive Insight:
Like many parts of California, Sacramento is facing a housing shortage as demand outpaces supply. And it’s driving prices upward. According to CoreLogic, median home sales prices in April reached $317,000, up 7.5% year-over-year to the highest levels since July 2007.
The city had 3,175 homes for sale in April, the highest since November 2016, but only a third were priced for entry-level buyers. The launch of Greenbriar should provide relief to first-time buyers as well as to older residents seeking more affordable options.
The Federal Emergency Management Agency halted construction in the Natomas area of Sacramento, where Greenbriar will be located, in 2008 after it determined its levees were insufficient. In 2011, The New York Times labeled Sacramento “the most flood-prone city in the nation” due to its location at the confluence of the Sacramento and American rivers. A rupture of the city’s levees would not only devastate the capital city, it would hold up water supply to San Francisco.
FEMA lifted the ban in 2015. For the first year and a half following the restart, the city issued permits at a measured pace to avoid overbuilding in the area. FEMA recently recognized Sacramento for its efforts to protect citizens from flood damage, issuing the county a higher flood classification that could make some residents eligible for discounts on flood insurance.
