Sacramento real estate vs inflation: did it beat the dollar?
196% × 46%
Updated June 1, 2026 · Redfin · BLS / FRED (CPIAUCNS)
Since 2013, Sacramento real estate is up 196% while U.S. consumer prices rose 46%. Sacramento real estate far outpaced inflation — but the ride was brutal: its worst drop was 13%. Figures in U.S. dollars.
Base 100 since 2013
Why compare Sacramento home prices (US$/m²) and U.S. inflation (CPI-U)
Sacramento is California's state capital and a more affordable inland alternative to the coastal metros, long a destination for buyers and remote workers leaving the costlier Bay Area in search of more space for the money. Its economy leans on state government, healthcare and logistics. As an inland market, it was hit hard in the 2008 housing crash, with steep declines before a gradual recovery. Through the 2010s and especially after 2020, demand spilling out of Northern California's expensive coastal cities pushed Sacramento prices up sharply relative to their earlier base.
Returns by window
| Window | Sacramento home prices (US$/m²) | U.S. inflation (CPI-U) |
|---|---|---|
| 1 year | -4% | 4% |
| 5 years | 7% | 24% |
| 10 years | 76% | 39% |
| since 2013 | 196% | 46% |
The price of return: risk
| Asset | Annual volatility | Worst drop |
|---|---|---|
| Sacramento real estate | 10% | -13% |
| Inflation (CPI) | 1% | -2% |
$10,000 in each, since 2013
| Asset | Value today |
|---|---|
| Sacramento real estate | $29,560 |
| Inflation (CPI) | $14,553 |
Frequently asked questions
Did Sacramento real estate beat inflation?
Over the period, Sacramento real estate returned 196% while U.S. consumer prices rose 46%. The gap is what the asset earned beyond simply keeping pace with the dollar.
Does this account for the dollar losing value?
Yes. The inflation line is U.S. CPI, the measure of how much purchasing power the dollar lost over the same period. Returns above that line are gains in real terms.
Does a higher return mean a better investment?
Not on its own. A higher return came with higher risk here — the volatility and the largest drop on this page show how much the value swung along the way.
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Descriptive, educational content computed from official public data. Not investment advice. Past performance does not guarantee future results.