Sacramento-area homebuilding fees have risen significantly, trade group says
In less than five years, fees rose 25% for houses built on standard-sized lots in the Sacramento region, according to a report commissioned by a group that advocates on behalf of residential construction firms.
That brought the average to $109,000, according to the Roseville-based North State Building Industry Association, whose members are builders, developers, subcontractors and suppliers. The increase was more modest for homes built on smaller lots, at 15%, to an average of $90,000. The study, conducted by Economic & Planning Systems, a land economics consulting firm, analyzed a set of projects in Sacramento, Placer, El Dorado and Yolo counties.
Tim Murphy, the association’s president and CEO, acknowledged that fees go toward important infrastructure, including transit and emergency services.
“We recognize that impact fees are a legitimate and necessary tool to fund the infrastructure and the facilities that have ongoing costs associated with them,” Murphy said.
But, he continued, “when we see costs that are moving beyond what the market and homebuyers can bear, it really has a significant impact on being able to provide housing for all members of our community.”
Murphy urged local governments to regularly review existing fees, and to examine a municipality’s cumulative homebuilding fees whenever an increase or a new fee is proposed.
Fees, Murphy added, are just one piece of the rising costs of residential construction. Construction material prices have fluctuated since the pandemic, and as fewer people enter the construction industry, a tighter labor supply also lifts costs.
Home prices, the association said, have risen 34% since 2019.
This story was originally published December 5, 2025 at 2:51 PM.
