The median home price in California is $743,435, which has increased by 3.3% since the last year. The California housing market has witnessed a 0.4% year-over-year decline in the number of homes listed. With only a 2-month supply left, the tight inventory is expected to drive an increase in the median sale price.
As per our research, home prices are relatively higher in coastal areas near San Francisco, CA. On the other hand, as you move towards the inland areas of the Golden State, like Redding, you can find cheaper housing options.
4 Reasons to live in California 🌊
- Cheaper Houses: The median home sale price in California is ~$743K. But you can get houses between $350K and $500K in cities like Sacramento, Bakersfield, and Modesto.
- Tax Benefits: California has implemented programs supporting certain demographics like the CalEITC (Earned Income Tax Credit). This program aids low-income earners, potentially reducing their tax burden.
- Affordable Healthcare: Healthcare in cities that are mentioned in this blog is up to 5% lower than the state average. In some cities, the average healthcare is even cheaper than the national average.
- Cheaper Rentals: The rent prices of these cities are lower than the national average. You can save up to $200 per month in rent.
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Cheapest Places to Live in California in 2024
This list provides insights into the average household income, median listing price, population, unemployment rate, and poverty rate of the cities.
| City | Median Household Income | Median Home Value | Population | Unemployment Rate | Poverty Rate |
|---|---|---|---|---|---|
| Fresno | $57,211 | $363,928 | 1,032,114 | 6.9% | 19.4% |
| Bakersfield | $69,014 | $377,282 | 410,647 | 7.5% | 16.3% |
| Visalia | $69,252 | $369,497 | 143,966 | 9.6% | 13.5% |
| Modesto | $67,011 | $428,187 | 218,069 | 6.0% | 12.8% |
| Stockton | $63,916 | $428,289 | 321,819 | 6.2% | 16.3% |
| Clovis | $89,769 | $497,596 | 124,556 | 4.4% | 8.1% |
| Sacramento | $71,074 | $467,948 | 528,001 | 4.8% | 14.8% |
7 Cheapest Places to Live in CA
The annual population growth of 4.6% since 2010 is reflective of people’s intention to move to California. If you’re considering shifting to the Golden State, here are some cities that offer affordable living options:
1. Fresno
| 🟢 Cost of Living Compared to State Average | 24%⬇️ |
| 🏡 Median Home Price | $363,928 |
| 💲 Median Rent | $1,395 |
| 🌅 Known For | Forestiere Underground Gardens |
Fresno is an affordable place to live in California. Its median house rent ranges from $700 to $5,500. A low cost of living and affordable housing has led to a population growth of 1.31% since 2020.
Fresno stands out as a budget-friendly city with beautiful gardens and parks. However, recently, the median household income saw a 7.2% growth. This indicates an increase in job opportunities and financial stability for the city’s residents.
» Homes for Sale in Fresno, CA: Find your dream home in this city.
2. Bakersfield
| 🟢 Cost of Living Compared to State Average | 23%⬇️ |
| 🏡 Median Home Price | $377,282 |
| 💲 Median Rent | $1,850 |
| 🏞️ Known For | Kern County Museum |
Bakersfield is one of the most budget-friendly rental destinations in California with an average home rent ranging from $450 – $7,800. It also offers affordable healthcare, which is 1% lower than the national average.
Bakersfield, also known as an agricultural hub, stands out for having the largest concentration of Basque restaurants. Additionally, the city provides cultural attractions, boasting a vibrant scene with numerous galleries and museums.
» Homes for Sale in Bakersfield, CA: Browse thousands of property listings in Breadbasket of California.
3. Visalia
| 🟢 Cost of Living Compared to State Average | 33.6%⬇️ |
| 🏡 Median Home Price | $369,497 |
| 💲 Median Rent | $1,950 |
| 🏖️ Known For | Sequoia National Park |
With rental costs below the national average, Visalia stands as one of the most affordable cities to live in California. The house rent is between $500 – $5,500.
Visalia offers a range of activities. You can enjoy concerts at the Visalia Fox Theatre or take a stroll through the delightful downtown area.
» Homes for Sale in Visalia, CA: View all the properties for sale in this city.
4. Modesto
| 🟢 Cost of Living Compared to State Average | 16%⬇️ |
| 🏡 Median Home Price | $428,187 |
| 💲 Median Rent | $1,847 |
| 🏖️ Known For | George Lucas’ Film American Graffiti |
Modesto offers budget-friendly living with a median rent that is $153 lower than the national median. Moreover, the healthcare costs are 13% below the national average in this city.
Modesto is the third-largest food distribution hub and engages in year-round crop harvesting of almonds, grapes, and peaches. Additionally, the city boasts of various art and entertainment events.
» Homes for Sale in Modesto, CA: Browse through thousands of affordable properties.
5. Stockton
| 🟢 Cost of Living Compared to State Average | 14%⬇️ |
| 🏡 Median Home Price | $428,289 |
| 💲 Median Rent | $1,850 |
| 🎨 Known For | Bob Hope Theatre |
Also known as “Brick City,” Stockton is just 50 miles from Sacramento and around 90 miles from San Francisco. The average housing price is 31% lower than the state average.
Stockton’s affordable food, health, housing, and transportation facilities make the city one of the cheapest places to live in the US.
» Homes for Sale in Stockton, CA: Browse through thousands of properties in Asparagus Capital of America.
6. Clovis
| 🟢 Cost of Living Compared to State Average | 19%⬇️ |
| 🏡 Median Home Price | $497,596 |
| 💲 Median Rent | $2,250 |
| 🏫 Known For | Old Town Clovis |
The house rent in Clovis is between $950 – $4,500. With an average household income of $112,027, you can comfortably live in this city. A low cost of living and affordable housing has led to a population growth of 5.87% since 2020.
Clovis is a compelling real estate choice for outdoor enthusiasts seeking affordable living in California. Its proximity to Yosemite National Park, Kings Canyon, and Sequoia National Park makes it an ideal location for nature lovers.
» Homes for Sale in Clovis, CA: Find a home in one of the cheapest places to live in California.
7. Sacramento
| 🟢 Cost of Living Compared to State Average | 16%⬇️ |
| 🏡 Median Home Price | $467,948 |
| 💲 Median Rent | $1,995 |
| 🖼️ Known For | Farm-to-Fork food culture |
Sacramento is one of the best places to live in California, with a slight year-over-year median home price decline of 0.8% in December 2023. The monthly cost of food and utilities is ~10% lower than the state average.
Sacramento aims to position itself as an attractive destination for technology businesses, job creation and economic growth. It is home to big companies like Amazon, Intel, and Aerojet.
» Homes for Sale in Sacramento, CA: Get yourself a home in this vibrant city.
- 🏡 Do You Need Professional Assistance While Buying a Home?
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The Bottom Line
The cost of living in California is 42% higher than the national average. It is also home to some of the most expensive cities in America. However, if you want to shift to California, you can find affordable housing in cities like Fresno, Bakersfield, and Visalia.
Cities like Clovis and Sacramento have a slightly expensive cost of living but provide better job opportunities. You must research the city’s home prices and living costs before relocating.
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With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale in California on Houzeo.
Find Your Dream Home 🏡
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Find Your Dream Home 🏡
View 94,988 Homes For Sale in California
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» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Research Methodology
We’ve created this list by considering factors such as cost of living, median home price, and rental price range. We have also accounted for the population, median household income, poverty rate, and unemployment rate in these cities.
To compile this list of the cheapest areas to live in California, we have drawn data from the Economic Research Institute, World Population Review, Rent Cafe, and Zillow.
FAQs
What is the cheapest place to live in California?
The cheapest place to live in California is Fresno. It offers affordable healthcare, which is 6.9% lower than the national average.
» 7 Cheapest Places to Live in California: Find out the other cheapest places to live in California!
Where is the best place to live in California?
The best place to live in California is Sacramento, followed by Fresno, San Diego, Long Beach, San Francisco, Los Angeles, and Anaheim.
Is California the cheapest place to live in?
No, it is not. Its average California home value is $743,435. However, it is cheaper than other expensive states like Hawaii and Massachusetts.
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