Affordability Issues Keep New Home Sales at Pre-Pandemic Levels
Aug 17, 2026 03:07PM ● By North State Building Industry Association News Release
Logo courtesy of the North State Building Industry Association
SACRAMENTO REGION, CA (MPG) - New home sales in July continued to reflect a return to post-pandemic levels, the North State Building Industry Association reported.
During the month, BIA members reported selling 403 new homes, which was 13% higher than June but 16% lower than July 2025. The monthly total was just slightly below the average July in the region (412) and one more sale than the 402 sold in July 2019 before the pandemic began.
BIA President & CEO Tim Murphy said affordability factors continue to put a damper on sales.
“Mortgage interest rates have edged upward to their highest level in about a year as uncertainty about the world's oil supply continues due to the conflict between the U.S. and Iran,” Murphy said.
“In addition, local government red tape continues to keep production low and their high fees — averaging over $100,000 per home in the region — drive costs far higher than in many parts of the country.”
Murphy added, however, that prospective buyers should remember that builders are working harder than ever to make it possible to purchase the new home of their dreams.
“Through mortgage rate buy-downs, downpayment assistance and other incentives, new homes today are often more affordable than you'd think. Families considering relocating should talk to builders about what options they have available,” he said.
In July, Roseville saw the most new homes sold (72), followed closely by Sacramento (69). Rancho Cordova was third with 49, followed by Elk Grove (46) and Natomas and Galt, which tied for fifth with 33 each. More statistical information is available below.
Sales were reported for 204 communities in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties.




















