Sacramento Mayor Kevin McCarty used his first State of the City address to outline new goals and ongoing efforts since taking office, with a focus on addressing homelessness in Sacramento.
McCarty laid out plans for funding a first-time homeowner program through a 2026 ballot measure to keep Major League Baseball in the region.
Speaking at The Sophia, Home of B Street Theatre, McCarty told CapRadio’s Vicki Gonzalez that he’ll ask the city council to place a housing and homelessness measure on the November 2026 ballot.
“We’re looking to go to the voters in ‘26 to adjust our real estate transfer tax for high-volume sales in the city of Sacramento and really make a difference to focus on housing and homelessness,” McCarty said. “We don’t have a lot in our general fund right now, so we’re working with stakeholders and talking about how this would be structured.”
The mayor described the proposal as a way to close gaps from shrinking state and federal dollars for housing. He said homeownership rates among young adults in Sacramento have dropped to 15% and that rising prices are pushing families out of the city.
“In the last decade, the median home sale price was $550,000,” McCarty said. “I think about my own kids and their generation … are they going to be able to afford rent or buy a home here? It’s daunting.”
He said this would include down-payment assistance and support for renters close to eviction.
Homelessness in the city
McCarty also reaffirmed his plans to build four new tiny home villages, focused on seniors and supported by a 30% income-based rent. He said the approach allows the city to do more with limited funds.
“If your income is $300 a month, you pay $100,” McCarty said. “Most of the time if you’re homeless and you get the call to get housing, you pay a third of your income. This is essentially a housing option that’s voluntary.”
McCarty defended the price tag of each tiny home unit, which is about $85,000 to build. He explained the difficulty of lowering overhead costs while building them out. He says that about $15,000 is the cost just for the units themselves, without other costs factored in.
“Heck, $85,000 is pretty good when you look at some of these projects in the city that cost $600,000 to house one homeless individual,” he said.
McCarty said the city learned lessons from Camp Resolution. The encampment closed last year, and the next safe-camping site will include kitchens, restrooms, and on-site staff.
“We want to be good neighbors,” he said. “We had a lot of problems with criminal activity inside and outside. This new one will have more structure.”
He said the city’s enforcement of camping bans will continue alongside expanded shelter options.
McCarty defended the city’s enforcement of camping bans outside City Hall and other public spaces, saying Sacramento now mirrors other large California cities.
“We can’t have urban camping,” he said. “But we also need to help people where they can go. Cities like Berkeley, Oakland and San Francisco, not your conservative cities, are doing the same thing because they realize you have to have more balance.”
MLB ambitions and River Parkway
Outside of housing, McCarty pledged that the River Parkway trails would be done by 2030.
“We’re going to complete the Freeport to Folsom Parkway so you can get on your bike, run or walk the whole river,” McCarty said. “There’s no more planning and talking. We’re doing it.”
McCarty also unveiled a campaign with West Sacramento’s Mayor Martha Guerrero aimed at keeping professional baseball in the region after the A’s leave for Las Vegas.
“After talking to people in Major League Baseball, there’s one thing we can do to dramatically increase our odds … making sure that we support the A’s here and show that we are worthy of a Major League franchise,” he said.
McCarty said this is part of his larger vision for the city.
“We need to grow our economy,” he said. “By having two million people come downtown every year, that’s going to dramatically impact our city budget.”
You can hear Mayor McCarty’s full conversation with CapRadio’s Vicki Gonzalez here.
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