Affordable Places to Live in California

California is often associated with soaring home prices and a high cost of living, but affordability and quality of life are not mutually exclusive across the state. Beyond the coastal metros, several inland and suburban cities offer attainable home prices, reasonable living costs, and strong lifestyle benefits-making them practical choices for buyers who want long-term value without compromising everyday comfort.

This guide breaks down the most affordable places to live in California, examining home prices, cost-of-living factors, mortgage rates, property taxes, and local market trends. From Central Valley cities like Bakersfield and Fresno to more balanced suburban markets such as Riverside, we highlight where affordability aligns with job opportunities, livability, and future housing potential-helping you make a financially sound and well-informed decision about where to call home.

The following cities stand out as some of the most Affordable Places to Live in California, offering lower home prices while maintaining strong livability.

Why Live Here? Bakersfield consistently ranks among the most Affordable Places to Live in California due to its lower housing costs and steady job growth.

• Median Home Price: Approximately $400K
• Pros: Affordable housing options, a family-friendly environment, and convenient access to nearby national parks like Sequoia and Kings Canyon
• Cons: Hot summers and fewer entertainment and nightlife options compared to larger metro areas

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Why Live Here? Fresno offers affordable home prices similar to Bakersfield, along with easy access to Yosemite National Park and a wide range of outdoor activities.

• Median Home Price: ~$425K
• Pros: Lower cost of living, agricultural hub, university town
• Cons: Air quality issues, slower job market

Why Live Here? Riverside is more affordable than Los Angeles and offers a growing, diverse economy, making it an appealing option for buyers who want more job opportunities than Bakersfield while still avoiding L.A.-level housing costs.

• Median Home Price: ~$550K
• Pros: Suburban feel, access to major freeways, outdoor activities
• Cons: Commuter traffic, limited nightlife

Riverside offers an affordable suburban lifestyle with outdoor perks, but be ready for commuter traffic.

Beyond home prices, evaluating everyday expenses is essential when comparing Affordable Places to Live in California.

• Groceries: Most expensive in San Francisco, Los Angeles, and San Diego
• Utilities: Highest in San Diego and Palm Springs, lowest in Fresno and Bakersfield
• Transportation: Costlier in Los Angeles and San Francisco due to gas prices & tolls
• Healthcare: Most expensive in San Francisco and Los Angeles, cheapest in Sacramento

Takeaway: The cost of living in California is highest in coastal and urban areas, while inland cities provide more affordability.

Home prices, interest rates, and taxes play a major role in determining which markets qualify as truly Affordable Places to Live in California.

When purchasing a home, consider these financial factors:

• Home Purchase Price – Varies by city and region
• Down Payment – Typically 10-20% (some loans allow as low as 3%)
• Mortgage Payment (PITI) – Includes principal, interest, taxes, and insurance
• Closing Costs – Usually 2-5% of the home price
• Maintenance & Repairs – Roughly 1-3% of the home’s value annually

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Current mortgage rates play a crucial role in home affordability:

• 30-Year Fixed: 6.5 - 7.2%

• 15-Year Fixed: 5.9 - 6.5%

Example Comparison:

A $600,000 home with:

3% Interest: ~$2,531/month

7% Interest: ~$3,992/month

A higher mortgage rate can increase monthly payments by $1,400 or more, impacting affordability.

Affordable Markets (Lower Prices & Property Taxes)

• Bakersfield – Median home price: ~$400K
• Fresno – Median home price: ~$425K
• Sacramento – Median home price: ~$525K

Expensive Markets (High Home Prices & Taxes)

• San Francisco – Median home price: ~$1.3M

• Los Angeles – Median home price: ~$950K

• San Jose – Median home price: ~$1.25M

California property taxes are relatively low compared to other states, but high home prices mean overall costs can still be significant.

• New Jersey– 2.49% (~$8,362/year on a $350K home)

• Illinois – 2.27% (~$7,945/year on a $350K home)

• Statewide Average: 0.73%
• Example: On a $750K home, expect to pay ~$5,475/year in property taxes.

Quick Tip: While California's property tax rate is lower than the national average, higher home prices offset the savings.

Deciding whether to rent or buy in California in 2024 comes down to your financial situation, lifestyle needs, and long-term goals.

Renting may be the right choice if you:

• Need flexibility (job relocation, uncertain plans)

• Find down payments and closing costs unaffordable

• Prefer avoiding maintenance responsibilities

Buying makes sense if you:

• Plan to stay in one location for 5+ years

• Can comfortably afford mortgage, taxes, and upkeep

• Want to build long-term equity instead of paying rent

Quick Tip: In some cities, rent prices may eventually make homeownership the better long-term investment.

Understanding whether it’s a buyer’s or seller’s market can impact your decision on when and where to buy a home.

• Sellers’ Advantage: Los Angeles, Orange County, Bay Area suburbs (high demand, low inventory)

• Buyers’ Advantage: San Francisco, Sacramento, San Diego (increased inventory, slower appreciation)

• Home Prices: Rose 4-7% in most cities but are stabilizing in 2024

• Mortgage Rates: Higher interest rates are slowing buyer demand

• Inventory Levels: Still below pre-pandemic levels, but increasing

Takeaway: The California housing market is cooling slightly, creating opportunities for buyers in certain cities.

Finding Affordable Places to Live in California is achievable when buyers focus on inland and suburban markets rather than high-priced coastal cities. Affordable living in California is still possible when you look beyond the most expensive coastal cities. Inland and suburban markets like Bakersfield, Fresno, Riverside, and Sacramento offer more attainable home prices, manageable living costs, and solid lifestyle options.

At reAlpha, we help buyers choose cities and neighborhoods that match their budget and long-term goals, using clear data and market insights to guide smarter decisions.

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As you evaluate your options, you may also want to explore related considerations such as property taxes in California, rent vs. buy decisions, or the best time to buy a house in California.

Start your journey today and discover the affordable places to live in California that fit your budget and lifestyle.