Tuesday, January 23, 2018

Sacramentans by the numbers: Sacramento demographic data from Age to Population and much more

In this forum, we often talk about California's capital city in terms of the real estate market, things to do and see, events, sports and the outdoors, and other local news. But today, we wanted to crunch the numbers on Sacramentans, themselves.

From population to income, education to employment, and much more, here's a breakdown of Sacramento resident demographics.

Population:
Sacramento city has a population of 495,200.
Including Sacramento county and the greater metro area, the population there are 776,941 residents.

That includes a 48.7% male population (378,020),
And 51.3% females (398,923).

Sacramento city is the 6th largest city in California, and 35th largest in the U.S.

The total population has increased 2.5% since 2010 and a whopping 162.4% since 2000.

Living situation:
There are 283,982 households in the city and county, with an average of 2.66 people per household.

Of all housing units:
55.2% are owner-occupied
44.8% are renter-occupied

It’s worth mentioning that the national homeownership rate is around 63% right now, so Sacramento falls short.

Of those owner-occupied units, 73.8% still have a mortgage while 26.2% are paid off or have no mortgage.

93.8% are occupied
6.2% are vacant

In total, there is a 1.3% homeowner vacancy rate and 5.1% rental vacancy rate.

By housing type:
64.8% are single-family residences or 1-unit detached housing
6.2% one unit, attached (townhomes, condos, etc.)
1.7% two units (duplexes)
5.3% three or four units
6.3% five to nine units
5% 10 to 19 units
8.2% 20 or more units
2.4% mobile home

Another notable statistic is that almost 1% of Sacramento’s total population (0.9%) live in an institutionalized setting (like Folsom Prison!).

Age:
The median age is 33.8 years in Sacramento.

That means Sacramentans are significantly younger city than the California median age of 35.6 years or the national median age of 37.8 years.

Employment:
More than two-thirds of Sacramentans work in white-collar jobs. In fact, 71.2% do so, while only 28.8% work In blue collar jobs.

74% of Sacramentans make their income from current employment with a salary, while
24% rely on Social Security,
18% on retirement income
17% on other investments
10% are self-employed, and
7% are on public assistance

Sacramento’s unemployment rate is roughly 8.7%, which is worse than the California (7.0%) and national unemployment rate.

There are 217,467 employees in Sacramento, with a  2.57% annual growth rate. That outpaces the U.S> average 1.83% growth rate.

Income and net worth:
The median household income in Sacramento is $55,187.

That is about 19% less than the California median household income of $67,739.

But the average household income is much higher in Sacramento; a reported $76,897.

Since 2000, the median income has grown 31% in the region, but it’s only increased 5% since 2010.

The average household enjoys a net worth of $475,839.

Consumer Spending:
The average Sacramento household also spends $57,773 each year!

The Cost of Living Index in Sacramento is 114 (114% of the national average). But that’s still significantly lower than the California Cost of Living Index of 137%!

Compared to a national average (represented by 100%) of spending, Sacramento residents typically spend more. Here are Sacramento household expenditures the exceed the national average (and by how much):

106% Insurance
105% Clothing
106% Education
104% Entertainment
104% Food
104% Health Care
103% Household Furnishings
104% Shelter
104% Household Operations
104% Personal Care
104% Tobacco
103% Transportation
103% Utilities

Marital Status:
46% of Sacramentans are currently married, which is a significantly smaller percentage than the California average (53%) and U.S. average (55%).

Of all Sacramento residents:
41.6% have never been married
40.1% are married
10.4% are divorced
5.6% are currently separated, and
2.4% are widowed

Education:
Sacramento is home to 193 public schools, 71 private schools, and 31 post-secondary schools.

In total 80.1% of Sacramento residents completed high school.

Looking closer at the education demographics we see:
31.4% had some college
23% earned their Bachelor’s Degree
11.9% earned their Graduate Degree
10.2% earned their Associate’s Degree
11.5% had some high school
12% had no high school*
*These stats include all Sacramento residents, including those still too young for high school or college

Crime rates:
Unfortunately, Sacramento’s total crime rates exceed that of the national average in some aspects. Of course, crime is higher in many major cities across the country, but the most part, Sacramento's neighborhoods and communities are safe and family friendly.

Here are some notable crime statistics, showing above the national baseline of 100%

Total crime risk 175%
Personal crime risk 152%
Robbery risk 194%
Property crime risk 220%
Automotive theft risk 514%

The good news is that Sacramento is below the California and national average when it comes to certain classifications of violent assault.

Transportation:
The average household in Sacramento has exactly 2.0 cars, and residents drive 24.7 minutes to and from work every day.

Sacramento’s Regional Transit District is the 11th busiest in the entire United States, with 274 buses and 76 light-rail vehicles offering service to 58,200 passengers every day throughout 54 stations.

But Sacramento is also ranked as the 24th most walkable major city in the U.S., and one of the most bicycle-friendly cities in the U.S.

Sacramento International Airport (SMF) handles more than 10 million passengers every year.

And if you live in Sacramento, then you probably already know that our beloved city is exactly 3,073 miles (4,946 km) from Ocean City, Maryland!




Wednesday, January 17, 2018

10 Real Estate Trends to watch in 2018 (Part 2)

Are you thinking about selling your home and moving up to your dream home in 2018? Finally investing in rental properties? Or maybe selling and downsizing?

You'll definitely want to read about these trends so you can make well-informed decisions that put the most money in your pocket!

For the third year in a row now, we've combed the best research by economists, analysts, and experts and summarized it for you with these ten real estate market trends to watch in 2018.

In part one of this series, we covered our first six market trends to watch in 2018, and here are the next four:

7. The GREAT news – the real estate market is expected to cruise, not lose

Across the country, real estate analysts and financial experts are generally in consensus with two predictions for the housing market this year: it will slow down just a measure from its hot pace, and that's also probably a necessary and healthy correction.

In fact, although historical data points to a turning of the real estate cycle to that of contraction, not expansion, within the coming years, our housing market is far different than the conditions circa 2007 that precluded the crash and recession.

For instance, housing is still in short supply, especially in the range of homes for first-time buyers and working-class families, which, conversely, stimulates demand. Unlike the record-high homeownership rate we saw in the mid-2000s thanks to the loosening of credit standards and widespread availability of no-money-down and subprime loans, our banks are issuing a vast majority of conservative 30-year fixed-rate loans these days. 

Interest rates have climbed a tick but still remain extremely low if you zoom out to a historical perspective, which incentivizes home buying, too.

Rents are also rising in most metro areas around the country, making home buying more attractive, and the changes we see from the new tax bill aren’t expected to have such a significant effect to be a detriment for the housing market.

Sure, home prices can’t keep climbing forever, but it looks like we’ll have a “soft landing” in 2018, with moderate home price appreciation in many areas – including Sacramento.

Markets are driven by tangible economic factors like jobs (or unemployment), interest rates, growth, and supply and demand, and those are all point to a gentle shift – not a screeching halt – in the housing market.

8. House tech fantasy finally becomes reality

Every year, real estate and home design blogs (like this one!) optimistically predict that THIS is the year when we see a wave of hi-tech innovations that transforms the common home. And while technology marches on, it’s been adopted reluctantly and incrementally for the common homeowner.

However, THIS is the year when we see a wave of hi-tech innovations that transform the common home!

But this wave of home technology isn’t necessarily just coming in consumer goods like appliances, televisions, built-in computer systems, and electronics, but in construction practices, itself.

In fact, a lot of the advancements we'll see are born from necessity, as builders look at new ways to fill the housing shortage with prefab homes, 3D printed homes and construction materials, and automation that makes beautiful and practical structures far more affordable as well as practical.

But yeah, whole walls that turned into TVs and computer screens would be nice, too!

9. Tax bill shakeup

No matter where you sit on the political spectrum, the recent passing of a historic tax bill still poses more questions than it does answers.

Will a rising economic tide “lift all boats” – including the real estate market? Did saving (although capping) the Mortgage Interest Deduction make it a non-factor for homeowners? Or, will the sting from new property tax rules further slow homeownership rates? We’ll find out in 2018!

The good news is that under the new tax bill, that deduction cap will be reduced, not eliminated. So new homebuyers will still be able to deduct the amount of mortgage interest they pay on the initial $750,000 of their mortgage loan. (Down from the current $1,000,000 cap on MID.)

(It’s worth noting that this only applies to new home purchases going forward, but current homeowners will be “grandfathered in” with the old rules.)

How much of an impact will this make? Most likely, it will have only modest or negligible effect on homeownership and the cost of owning, since the national median home price is only $254,000 (far below the $750,000).

Capital gains were also left intact, so when homeowners sell their primary home (one they’ve lived in at least two of the past five years), they can exclude $250,000 of profits from taxation, or $500,000 for married couples.

But under the new tax codes, homeowners will be able to deduct only up to $10,000 in state and local income and property taxes OR sales and state and local property taxes.

April 15 will be interesting this year – but owning real estate is still one of the best investments you can make, no matter how you add it up!  

10. Inventory better, but still lagging

We still don’t have enough houses for sale around the country to serve demand, whether new construction or existing homes. In fact, while more projects that were initiated in 2016 and 2017 are finished in 2018 and available for a resident, the inventory shortage still has a long way to go. Somehow, rental prices are surging in most metro markets at that same time as home prices because of this shortage, and that double-edged sword is especially true in the Sacramento area.

Of course, no one could have anticipated the additional home shortage caused by the myriad natural disasters we suffered through in 2017. In some cities and states around the country, millions of homes were lost – for both owners and renters – due to flooding, tornados, wildfires, and more. 

But the need for housing also presents incredible opportunities for landlords, investors, savvy homeowners, and even first-time buyers who put in the time and work to find the right home this year.


***