The Sacramento Business Review says there are 85,000 more jobs in the region than in 2011. The average price of homes has also increased.
But, Sacramento State Professor Sanjay Varshnay says he is concerned the new jobs won't pay enough to keep up with increasing home prices.
"We are back to levels that are pre-recession including the median home pricing in many cases and the affordability in the Sacramento region for an average household of four is under question. Can they really afford a 3,000-square-foot home for example selling for $550,000? Because the job creation we have seen does not really warrant that kind of pricing."
Varshnay says the number of leased office spaces and small business loans increased last year and should again this year.
The forecast also says credit will likely be more accessible and that small local banks will likely continue a trend of merging with other banks.
Varshnay notes struggling European economies may also weigh on California's and the Sacramento region's economy. But, he says the "psychological tide" from a new downtown arena and future soccer stadium have given the Sacramento region positive momentum.
Sacramento State and the Sacramento Metro Chamber produce The Sacramento Business Review twice a year.