Considering that four of the ten most expensive cities in the United States are located in California, the prospect of buying an inexpensive house within the state might feel… unlikely. But if you’re willing to venture away from the hotspots of San Francisco and Los Angeles, buying a house — affordably — in California is possible.
We’ve taken a deep dive into market research and analyzed median home sale prices, the cost of living index (keep in mind that 100 is the national average, so it’s always up or down from there when we’re sharing numbers below!), and even specific neighborhoods to determine the cheapest places to buy a house in California.
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There’s lots of ground to cover, so let’s get right into it.
Bakersfield
Given its sweet spot location between LA and San Francisco, it’s a wonder that Bakersfield is still such an affordable city for California homebuyers. Bakersfield has been attracting new residents, though — the city was California’s fastest-growing in 2020 and boasts a current population of nearly 415,000 — and the median home price is up 19% since September 2021.
That said, Bakersfield still has good schools, job opportunities (particularly in agriculture and manufacturing), and plenty of recreational activities both around town and in the outdoors.
Based on median home pricing, three of Bakersfield’s most affordable neighborhoods are Park Stockdale ($287,500), Casa Loma ($230,000), and Homaker Park ($199,900).
Median home price: $335,000
Median household income: $65,687
Cost of living index: 102.6
Cost of utilities index: 111.7
Property tax rate: 0.8%
Listings in Bakersfield: View available homes
Blythe
Tucked away in southeast California, the small city of Blythe is an often overlooked destination for homebuyers. The population is just under 18,000 and declining by 1.38% annually, but the low median home price is down 7.4% from August 2021 — which could be an interesting prospect for potential buyers. Outdoor enthusiasts will appreciate the area’s parks and river access.
Blythe’s unemployment rate is 7.7%, but future job growth over the next decade is estimated at 38.8%.
Median home price: $207,500
Median household income: $44,563
Cost of living index: 94.1
Cost of utilities index: 108.6
Property tax rate: 0.95%
Listings in Blythe: View available homes
Clearlake
Clearlake sits north of Sacramento on, as its name suggests, a lake — which means this affordable city is not only one of the cheapest places to buy a house in California, it’s a haven for outdoor enthusiasts. Clearlake currently has a population of just under 17,000, and it’s growing at a rate of 0.86% annually. The median home price is up just 2.3% since June 2021, so the market remains fairly stable.
While Clearlake isn’t a hotbed of high-paying jobs, the unemployment rate is 4.20%, which is down significantly from 2021’s 7.70%.
Median home price: $230,000
Median household income: $36,339
Cost of living index: 91.0
Cost of utilities index: 111.1
Property tax rate: 0.86%
Listings in Bakersfield: View available homes
Eureka
With its Victorian-style buildings and lively waterfront, Eureka can easily be described as a charming small town. It sits about five hours north of San Francisco and has a population of about 26,000, though that number is in decline by 0.26% annually. Median home prices are up 21.7% since last year.
Healthcare, tourism, and lumber are significant industries in Eureka, and the city’s unemployment rate sits at just 3.10% as the local economy recovers from Covid-19-related job loss.
Median home price: $461,485
Median household income: $43,199
Cost of living index: 98.9
Cost of utilities index: 88.4
Property tax rate: 1%
Listings in Eureka: View available homes
Fresno
Despite being considerably larger than some of the other affordable cities on this list, Fresno — population 552,000 with a 1.37% growth over last year — remains one of California’s cheapest places to buy a house. Median home prices are on the rise, but this figure is only up 9.6% since August 2021.
Agriculture is a major industry in the Fresno area, but jobs in healthcare, business, and education are also available. The city’s unemployment rate as of August 2022 is 5.9%.
Looking again at median home pricing, Fresno’s most affordable neighborhoods include McLane ($389,000), West ($379,000), and Hoover ($369,900).
Median home price: $420,000
Median household income: $53,368
Cost of living index: 102.6
Cost of utilities index: 112.4
Property tax rate: 0.82%
Listings in Fresno: View available homes
Oakhurst
If you’re up for small town life, Oakhurst — located 14 miles south of the entrance to Yosemite National Park — may be a great place for you to buy in California. Though the population is just 6,500, Oakhurst has a 4.99% growth rate. This does mean that median home prices are up 13.7% from August 2021, but Oakhurst is still largely affordable.
The unemployment rate in Oakhurst is 9.7%, but job growth over the next ten years is predicted at 32.8% — things are happening in Oakhurst!
Median home price: $460,000
Median household income: $53,375
Cost of living index: 105.9
Cost of utilities index: 104.7
Property tax rate: 0.76%
Listings in Oakhurst: View available homes
Stockton
Located in the Central Valley, Stockton is just an hour and a half from San Francisco, so it’s a worthy prospect for anyone who enjoys proximity to both big cities and the outdoors. Stockton’s population has a 0.90% growth rate and currently sits at 327,000. Median home pricing is up 3.9% since June 2021, but the property tax rate here is one of the lowest in the state.
As of March 2022, Stockton’s unemployment rate is 5.7%. Job opportunities are most prevalent in manufacturing, education, healthcare, and agriculture.
Stockton’s most affordable neighborhoods by median home price include Sherwood Manor ($475,000) and Stonewood ($440,000).
Median home price: $480,000
Median household income: $58,393
Cost of living index: 113.9
Cost of utilities index: 108.9
Property tax rate: 0.73%
Listings in Stockton: View available homes
Thousand Palms
A dreamy name for sure, Thousand Palms sits two-and-a-half hours southeast of Los Angeles, and this cozy town — with a population of just 8,000 — is growing. The 0.31% growth rate may seem slow, but that just means there’s still time to buy a home while prices are comparatively low. The median home price in Thousand Palms is up 3.9% from June 2021.
Thousand Palms’ unemployment rate is at 7.7%, but job growth in the coming years is predicted to reach 38.8% — higher than the national average.
Median home price: $365,000
Median household income: $58,814
Cost of living index: 113.9
Cost of utilities index: 106.7
Property tax rate: 0.95%
Listings in Thousand Palms: View available homes
Ukiah
Never heard of Ukiah? That’s OK; it’s pretty remote, but still a unique place to buy a home if you’re looking to purchase in California. You’ll find lakes and vineyards here, so this little city of 16,700 has plenty of things to do. It’s growing, too — at a rate of 0.32% — and the median home price is up 6.5% from May 2021.
Ukiah does have an unemployment rate of 7.1% and job growth is only expected to grow by 28.4% over the next 10 years, but that doesn’t mean opportunities are limited.
Median home price: $485,000
Median household income: $52,915
Cost of living index: 115.2
Cost of utilities index: 101.4
Property tax rate: 1%
Listings in Ukiah: View available homes
West Sacramento
Sacramento is divided by the Sacramento River, and you can probably guess on which side West Sacramento sits. This small city (pop. 55,000) is growing, with a 0.95% increase in 2022. While the median home price is also up — by a modest 3.1% from March 2021 — West Sacramento certainly deserves a spot on the list of cheapest places to buy a house in California.
West Sacramento’s unemployment rate is 6.1%, which puts it right on par with the U.S. average. You’ll find job opportunities in the hospitality, commerce, manufacturing, and agriculture industries — among others.
Median home price: $400,000
Median household income: $73,979
Cost of living index: 123
Cost of utilities index: 101.4
Property tax rate: 0.87%
Listings in West Sacramento: View available homes
Key takeaways
While California is undoubtedly an expensive state, there are definitely still great places to buy (relatively!) inexpensive homes. The median home price in 2022 in the U.S. is $428,700, and the cities we’ve shared here have median prices ranging from $230,000 to $485,000.
As always, remember that there’s no better partner for finding your dream home in California than a great real estate agent!
Header Image Source: (Mark Neal / Unsplash)