9 of the Cheapest Places to Live in California

Bakersfield

Population: 416,081

Median local home value: $386,722

Average household income: $99,270

The city of Bakersfield is located between the major metropolitan centers of Los Angeles and San Francisco. With good school systems and affordable housing options compared to other cities in the state, there has been a population surge in Bakersfield in the past few years.

Agriculture and oil are big industries here, giving the city the nickname of the “Texas of California.” Its ample parks, bike paths, and proximity to the Sierra Nevada Mountains are also a big draw for those who prefer an outdoor, active lifestyle.

Fresno

Population: 546,718

Median local home value: $380,496

Average household income: $85,872

Fresno is the fifth-largest city in the state. Located in California’s San Joaquin Valley, the city is surrounded by farms, which contributes heavily to the agricultural culture here. Whether it’s shopping at an area farmer’s market for local tomatoes and pistachios, or eating at a farm-to-table restaurant, Fresno is a foodie’s delight.

Because it’s a major city, residents can live and work here. Fresno has walkable neighborhoods for those who prefer an active lifestyle. And when the desire to visit Los Angeles or San Francisco strikes, each city is close enough for a quick weekend trip.

Stockton

Population: 319,065

Median local home value: $440,008

Average household income: $91,983

Located in California’s Central Valley, the city of Stockton sits in relatively close proximity to San Francisco and San Jose. Yet, with notably lower median home values, it’s significantly more affordable than housing prices in either of those other metropolitan areas.

Stockton is a diverse community that draws residents from many different cultures and backgrounds. This diversity can be seen not just in the various neighborhoods, but also in the city’s restaurants, shops, museums, and city-wide events. It is also centrally located and has a business-friendly government, which makes it inviting for startups and growing businesses.

Clovis

Population: 127,511

Median local home value: $511,104

Average household income: $123,212

Clovis is named one of the best places to live in the West. The small city of Clovis is located in the San Joaquin Valley at the foothills of the Sierra Nevada Mountains, giving the city the nickname “Gateway to the Sierra.” Not only do the mountains provide a picturesque backdrop to the city, but they also give residents easy access to areas for hiking, mountain biking, and other outdoor adventures. At the same time, the city is only a two- to three-hour drive to either the coast or Yosemite National Park.

Sacramento

Population: 526,669

Median local home value: $481,327

Average household income: $102,258

According to an analysis by U.S. News and World Report, Sacramento is the sixth best place to live in California thanks to its affordable housing options, mild climate, job opportunities, and overall quality of life. Located just a few hours away from San Francisco, the city has experienced a population surge in the last few years, as families and young professionals were drawn by the city’s affordability compared to nearby metropolitan areas.

Despite being an urban center, the city of Sacramento is known for its abundance of trees, which provide needed relief in the summer sun. In fact, it has more trees per capita than any other city in the country, giving it the nickname “City of Trees.”

Modesto

Population: 218,989

Median local home value: $444,520

Average household income: $96,309

The city of Modesto is located in the Central Valley, about 70 miles from the capital city of Sacramento. The city has a thriving arts and entertainment culture, with its own symphony orchestra, opera house, and arts center. As the birthplace of George Lucas, it also proudly hosts the only official American Graffiti car show each June, which includes a festival, parade, and a week-long showing of the movie.

If farm-to-table dining is more your speed, you’ll find plenty of dining options and farmer’s markets in Modesto. As the third-largest food distribution area in the country, the area harvests crops year-round. It’s also home to E&J Gallo, the largest family-owned wine and spirit company in the country.

Q&A: Narrowing down your California home search

Are there cheap places to live near the ocean in California?

Yes, there are some areas along California’s coastline that offer a more affordable cost of living. Generally speaking, it’s cheaper to live in northern California coastal communities compared to those in the Los Angeles and San Diego metro areas, with Crescent City (median home price around $342,753), Samoa ($433,814), Eureka ($410,707), and Arcata ($505,549) all providing affordable housing options. By California standards, the city of Oceano also provides cheaper places to live, though the median home price is still $630,390.

What are the safest cities in California?

According to a 2024 report, the safest cities in California are Rancho Santa Margarita, Aliso Viejo, Yorba Linda, Laguna Niguel, Mission Viejo, Lake Forest, Lincoln, Poway, Rocklin, and Irvine.

Are there cheap places to live in close proximity to good California job markets?

Santa Clara is one of the best cities in the country for job opportunities, offering a median income of $100,182. Although Santa Clara tends to be very pricey, there are some cheaper options in the San Francisco metro area. Vallejo, with a median home value of $542,473, and San Pablo, with a median home value of $582,407, are a few options.

Are there cheap places to live that have good school districts?

Yes, there are affordable communities in California that have highly ranked school districts. Clovis, Bakersfield, and Sacramento (which we covered above) have good public schools. Beaumont is another option, which has a median home price of $527,311.

What if I want to live near Hollywood and the stars?

With a median home price of $2 million, Hollywood Hills is a very expensive place to live. By comparison, Burbank is cheaper but still averages $1.1 million.

Is this a good time to sell my California home?

House prices have been climbing throughout California over the past few years, putting many current homeowners in a good position to sell. The lower interest rates since spring have also been encouraging more market activity. In San Diego, the median sale price has risen by 5.3% in the last year, and in Napa, it rose by 13.5%.

Of course, the best time to sell your home will be when the market is strongest — that’s why we recommend trying our Best Time to Sell Calculator. This tool will analyze sales data in your neighborhood to provide a more educated estimate about what time of year your home might sell the fastest — and for the highest selling price.

Considering buying or selling in California? Partner with a top agent

As a whole, the California housing market is competitive and expensive. If affordability is key, you’ll want to partner with a top real estate agent who knows the ins and outs of the different communities and can point you toward the best options for your needs.

If you’re a current California homeowner and are curious about what your home might be worth right now, we invite you to try HomeLight’s Home Value Estimator for a free, ballpark estimate.

That being said, house sales in the state have been falling — so if you’re interested in putting your home on the market, you’ll benefit from the expertise of one of the area’s top real estate agents.

Header Image Source: (Mike Fox / Unsplash)