Emma and Brian had always dreamed of living in California. After years of saving and raising their two kids in a small rental apartment in the Midwest, they decided to pursue that dream. The picturesque beaches, diverse culture, and job opportunities in tech had drawn them to the Golden State. But as they began searching for homes, the sticker shock hit hard. Prices in Los Angeles and the Bay Area were far beyond their budget. “Maybe California isn’t for us after all,” Brian sighed. But Emma, ever the optimist, wasn’t ready to give up. “There must be affordable options somewhere,” she said, scouring listings in lesser-known areas. They discovered a different side of California—one where homeownership was still within reach.
For many people, California conjures images of sprawling mansions, multimillion-dollar estates, and sky-high property values in places like Los Angeles and San Francisco. However, the state is vast and diverse, and not every corner of cheapest houses in california has a hefty price tag. In several regions, homes are relatively affordable compared to the state’s major cities.
This article will explore some of the cheapest places to buy houses in cheapest houses in california examine why these areas are more affordable, and provide tips for buyers looking to purchase property in the Golden State.
The California Housing Market: An Overview
The California real estate market is one of the most expensive in the United States. As of mid-2023, the median home price in the state was approximately $830,000, according to Zillow. This is more than double the national median of $416,100. The cities of San Francisco, San Jose, Los Angeles, and San Diego consistently rank among the most expensive housing markets in the country. In these areas, it’s not uncommon for buyers to face bidding wars, high down payments, and monthly mortgage payments far above the national average. (Source: Zillow Market Overview, 2023)
However, while the spotlight often shines on California’s high-cost cities, there are many regions where homes are still affordable—especially if you’re willing to live in more rural or inland areas. Several cities and towns offer housing prices significantly below the state average, making them ideal for first-time buyers, retirees, and anyone looking for a more affordable lifestyle.
Where to Find the Cheapest Houses in California
If you’re looking for a bargain, here are some of the most affordable places to buy a home in California:
2.1. Bakersfield
Located in the southern part of California’s Central Valley, Bakersfield consistently ranks as one of the most affordable cities in the state. As of 2023, the median home price in Bakersfield was approximately $370,000, less than half of the statewide median. (Source: Redfin, 2023) Bakersfield’s economy is primarily based on agriculture and oil production. While it may not have the glitz and glamour of the coast, it offers a low cost of living and is within driving distance of Los Angeles.
Bakersfield also boasts a growing population and a family-friendly atmosphere. With parks, schools, and affordable amenities, it has become an attractive option for those priced out of larger metropolitan areas. In recent years, Bakersfield has also seen growth in the healthcare and education sectors, making it a practical choice for families and young professionals.
2.2. Fresno
Another Central Valley city, Fresno, offers relatively affordable housing for buyers looking to own property in California. The median home price in Fresno as of 2023 was around $400,000. While prices have risen slightly in recent years, Fresno remains one of the best options for budget-conscious buyers. (Source: Realtor.com, 2023)
Fresno is California’s fifth-largest city but remains much more affordable than the state’s larger coastal cities. Its location is a significant selling point for many: Fresno is roughly halfway between Los Angeles and San Francisco and close to national treasures like Yosemite National Park and Sequoia National Park. This makes it an excellent base for outdoor enthusiasts who want easy access to nature without the high cost of coastal living.
2.3. Barstow
Barstow, located in the Mojave Desert along the historic Route 66, is one of the most affordable cities in California. The median home price here is just over $240,000, one of the lowest in the state. (Source: Zillow, 2023) Barstow’s desert location doesn’t have the beaches or urban amenities of California’s larger cities. Still, it offers a quiet, affordable lifestyle for those looking to escape the hustle and bustle.
Barstow’s economy is primarily supported by transportation, military, and tourism due to its proximity to major highways and the U.S. Army’s Fort Irwin National Training Center. While it may not appeal to everyone, Barstow’s low cost of living and low property taxes make it an attractive option for retirees and those seeking a slower pace of life.
2.4. Clearlake
Nestled around one of California’s most significant natural freshwater lakes, Clearlake is a small town with a median home price of approximately $250,000. Located about two hours north of San Francisco, Clearlake offers a more rural and scenic lifestyle while still within a reasonable distance of the Bay Area. (Source: Realtor.com, 2023)
Clearlake attracts nature lovers and retirees with its quiet surroundings, boating, fishing, and proximity to wine country. The area has a mix of vacation homes and permanent residences, and while it may not have the bustling economy of cheapest houses in california major cities, its affordability and beautiful surroundings make it an appealing option for those looking for a peaceful retreat.
2.5. Stockton
Stockton, located in the San Joaquin Valley, is another affordable option for homebuyers. The median home price in Stockton is approximately $450,000, which is still below the statewide median. Stockton offers urban amenities and affordable housing, making it a popular choice for families and young professionals. (Source: Redfin, 2023)
Stockton has struggled with economic challenges, including a 2012 bankruptcy filing. Still, in recent years, the city has worked to revitalize its downtown area and improve public services. With its lower home prices and proximity to the Bay Area (about 90 minutes away by car), Stockton has attracted a growing number of commuters and first-time homebuyers.
Why Are These Areas More Affordable?
Several factors contribute to the affordability of homes in these areas:
- Location: Many of California’s cheapest places to buy a home are inland or more rural parts of the state. These areas are farther away from the coastal cities and job hubs that increase property prices. While they may not have the ocean views or urban amenities of places like San Francisco or Los Angeles, they offer more space and lower living costs.
- Local Economy: Cities like Bakersfield, Fresno, and Barstow rely heavily on industries like agriculture, oil, and transportation, which tend to offer lower wages than the tech or finance sectors. This contributes to lower home prices, as demand for luxury properties is lower in these regions.
- Supply and Demand: Many of these affordable cities have more available land for development, meaning that housing supply can more easily meet demand. In contrast, coastal areas have limited land availability, which increases prices as competition for homes increases.
Tips for Buying an Affordable Home in California
If you’re in the market for a budget-friendly home in California, here are some tips to help you find the best deal:
- Work with a Local Real Estate Agent: A real estate agent with experience in the area you’re considering can help you navigate the market and find properties that fit your budget.
- Be Open to Different Locations: Don’t limit yourself to the most popular cities. Exploring more rural or lesser-known areas can reveal hidden gems.
- Consider the Total Cost of Living: While the home may be affordable, consider other factors like property taxes, insurance, utilities, and commute times before deciding.
- Watch for Foreclosures and Short Sales: In some lower-priced markets, you may find foreclosed homes or short sales that can be purchased at a discount.
Conclusion:
Emma and Brian’s journey to find an affordable home in California led them to a quiet town in the Central Valley, where they could purchase a spacious home for less than half the price of a comparable property in the Bay Area. Like them, many people are discovering that while California is known for its high cost of living, there are still plenty of affordable options if you know where to look. Homebuyers can find budget-friendly homes by exploring lesser-known regions like Bakersfield, Fresno, and Clearlake without sacrificing the California dream.
