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Sacramento Rezones Del Paso Heights: Mixed-Use Development Replaces Single-Family Zoning
City planners will consider changes along Arcade Boulevard that could shift the neighborhood from single-family zoning toward mixed-use projects.
How we reported this
The Sacramento City Council will hold a public hearing on August 15 to review a rezoning proposal for 180 acres in Del Paso Heights, a move that would allow buildings up to five stories on parcels now limited to single-family homes.
The timing coincides with the city’s updated housing element, which requires Sacramento to add 25,000 new units by 2031 under state rules. Del Paso Heights sits inside a transit priority area served by the Blue Line light rail, yet it has seen little new construction since the early 2000s. Planners say the rezoning would unlock sites near existing infrastructure without expanding the urban footprint.
Two blocks east of the proposed rezoning boundary sits the Del Paso Heights Community Center at 3445 4th Avenue, where residents have attended monthly planning workshops since March. The Sacramento Housing and Redevelopment Agency maintains an office two miles south on Del Paso Boulevard and has already acquired three vacant lots along Rio Linda Boulevard for potential affordable projects once zoning changes take effect.
Current market conditions
Redfin data through June shows the median sale price in Del Paso Heights reached $375,000, a 14 percent increase from the same period in 2025. That figure remains 22 percent below the citywide median of $485,000. Rental listings on Zillow averaged $1,850 for two-bedroom units last month, still below the $2,150 average recorded in the adjacent Robla neighborhood.
Traffic counts from the Sacramento Department of Public Works place 18,400 vehicles daily on Arcade Boulevard between the light-rail station and Marysville Boulevard, a volume planners cite as justification for allowing ground-floor retail in new buildings.
Next steps for buyers and developers
Property owners inside the rezoning boundaries can submit pre-application packets to the city’s planning division starting July 20. Those packets must include site plans showing at least 30 percent of new floor area reserved for residential use. Investors tracking the hearing should note that any approved ordinance takes effect 30 days after final council adoption, expected no later than September 30.
Local real estate agents recommend reviewing parcel maps on the city’s open-data portal before touring listings, since only properties fronting designated corridors qualify for the height increase under the draft ordinance.
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.