property
$215M Transit Extension Transforms North Highlands Into Sacramento Bedroom Community
A $215 million bus rapid transit extension along Watt Avenue will turn North Highlands into an affordable bedroom community for downtown office workers.
How we reported this
The Sacramento City Council voted 7-2 on July 7 to fund the Watt Avenue Bus Rapid Transit extension, clearing the way for North Highlands to emerge as a new commuter suburb linked directly to downtown employment centers.
The decision arrives as Sacramento home prices in core neighborhoods climbed past $650,000 on average last quarter, pushing buyers toward northern corridors where land remains cheaper and transit access is expanding. Regional planners have cited the Capitol Corridor rail schedule changes and SacRT's 2025 ridership rebound as reasons to accelerate outer-area connections now.
The project runs from the existing Watt Avenue station near McClellan Business Park through the North Highlands Community Planning Group boundaries and connects to the American River Parkway trail network at the new terminus. SacRT will operate the dedicated lanes alongside the existing Route 1 bus service, cutting end-to-end travel time to the R Street office district to 22 minutes during peak hours.
Development pipeline
City planning records show four residential projects already filed for the corridor, including a 312-unit apartment complex at the former McClellan airfield site and 148 single-family homes on land once used for the Watt Avenue flea market. Builders list starting prices at $465,000 for three-bedroom townhomes, below the $612,000 median recorded for new construction in Natomas last month. The city expects the first certificates of occupancy in late 2028 once the transit lanes open.
SacRT data from the 2025 annual report showed weekday ridership on the Watt corridor already at 8,400 boardings, a 17 percent increase from 2023 levels. Planners project the new service will add another 4,200 daily riders once the extension reaches full operation in 2029.
Next steps for buyers
Prospective residents should monitor the City of Sacramento Planning Department portal for the August 12 community workshop on zoning changes along the corridor. Those seeking pre-construction pricing can contact developers directly through listings posted on the North Highlands Chamber of Commerce site, which will update availability as permits clear later this summer.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.