You don’t have to be locked out of the enviable Californian lifestyle by the state’s high home prices. It’s true, housing costs can be astronomical in many cities across the state. Rent isn’t cheap, either.
But that doesn’t mean you need to miss out on the Golden State’s climate, scenery, coastline, wines, outdoor activities, sports teams, cuisines, and sunsets.
Instead, you can choose to live in one of the 10 most affordable housing markets in California.
Affordable California Cities and Typical Home Prices
| Ranking | City | Average Home Cost |
|---|---|---|
| 1 | Blythe | $220,177 |
| 2 | Twentynine Palms | $246,780 |
| 3 | Corcoran | $261,820 |
| 4 | Barstow | $262,471 |
| 5 | Ridgecrest | $269,472 |
| 6 | Oildale | $280,626 |
| 7 | Arvin | $296,424 |
| 8 | Oroville | $299,483 |
| 9 | Red Bluff | $303,243 |
| 10 | Wasco | $313,931 |
1. Blythe - $220,177
Situated along the Colorado River in the southeast of the state, the City of Blythe – with a population of just over 17,000 – lies along the California-Arizona border, roughly halfway between Los Angeles and Phoenix. Because of its location along Interstate 10, travel and tourism play a significant role in the city’s economy, as does agriculture, thanks to the fertile Palo Verde Valley.
There’s plenty to do in Blythe, from water-based activities like kayaking and fishing, to spending a relaxing day taking in the city’s numerous parks. Music lovers will enjoy the popular Blythe Bluegrass Festival, held every March. And with the typical estimated mortgage payment running just $1,656 per month, residents will have plenty of money left over to make the most of all the city has to offer.
2. Twentynine Palms - $246,780
The city of Twentynine Palms gets its name from the 29 palm trees planted by the Serrano people around the nearby Oasis of Mara. Serving as the gateway to Joshua Tree National Park, the city is a popular tourist stop. It’s also home to the Marine Corps Air Ground Combat Center, a major driver of the local economy.
Nature takes a front seat in Twentynine Palms, with plenty of nearby hiking trails, hot springs, and the Sky’s The Limit Observatory. Residents can also enjoy local museums, a distillery, and a drive-in movie theater. For day trips, the city is just over an hour from Palm Springs and about 2.5 hours from Los Angeles.
The estimated average monthly cost of the typical home in Twentynine Palms? A very reasonable $1,856.
3. Corcoran - $261,820
Located in Kings County, about 1 hour south of Fresno, the city of Corcoran has a population of just under 23,000, with an economy driven by agriculture and two sizable nearby correctional facilities.
There’s plenty for residents to do in and around Corcoran: the city is home to nine parks, sports fields, and a public Olympic-sized swimming pool with an impressive 162-foot water slide. There are also numerous nearby museums, and the Sequoia National Park is just a short drive away.
Homes in Corcoran remain very reasonably priced compared to much of the state, with the typical property coming with an estimated price tag of $1,969 per month.
4. Barstow - $262,471
Located in the Mojave Desert along historic Route 66, Barstow is a city of over 25,000 residents. Founded in 1880 as Fishpond, it later changed its name in honor of the then-president of the Santa Fe Railway, William Barstow Strong.
The city is a major road transportation hub, as two busy highways meet there. Fort Irwin, about 37 miles northeast, spurred growth in the 1940s. That’s now the home of the Army’s National Training Center. The mining of jasper and copper, along with irrigated agriculture, contributes to the local economy.
The monthly cost to buy the average home in Barstow? An estimated $1,974.
5. Ridgecrest - $269,472
Ridgecrest can be found in the southern portion of the Indian Wells Valley. It’s surrounded by the Coso Range to the north, the Sierra Nevada to the west, and the El Paso Mountains to the south. It is about a two-hour drive from both Bakersfield and San Bernardino. It’s perhaps best known for its beautiful sunsets and long, sunny days, which residents love.
The single largest employer in Ridgecrest is the nearby Naval Air Weapons Station China Lake. At the same time, other employment opportunities exist with major companies and organizations, including Ridgecrest Regional Hospital, Searles Valley Minerals, and the Sierra Sands Unified School District.
Buying the typical home in Ridgecrest will set you back just an estimated $2,027 per month.
6. Oildale - $280,626
A suburb of Bakersfield, Oildale, with a population of around 35,000, offers homes priced nearly $115,000 less on average than the nearby larger city. As the name suggests, the town of Oildale is heavily fueled by the energy sector, claiming two of the largest oil fields in the state.
Oildale is home to parks, museums, and music venues, and nearby Bakersfield offers all the amenities and attractions of a mid-sized city, including shopping, dining, and plenty of entertainment options.
Despite its convenient location, living in Oildale is affordable, with the average home estimated to have a monthly mortgage payment of $2,111.
7. Arvin - $296,424
Arvin, also located near Bakersfield – approximately 15 miles to the southeast – is home to around 20,000 residents. There are plenty of natural attractions to enjoy near the city, with Wind Wolves Preserve, Carrizo Plain National Monument, and Fort Tejon State Historic Park all located just a short drive away.
Named after early Kern County settler Arvin Richardson, the city of Arvin’s economy is primarily based on agriculture, while other employment opportunities include the education and healthcare industries.
Thinking about moving to Arvin? The typical home here comes with a monthly housing cost estimated at just $2,229.
8. Oroville - $299,483
Considered the gateway to Lake Oroville and the Feather River recreational areas, Oroville is located in Butte County in the Sierra Nevada Foothills. Lake Oroville is the second largest lake in California, and was created with the construction of the Oroville Dam.
The greater Oroville area is home to some of the most significant attractions in the region, including the Feather River Fish Hatchery and scenic Table Mountain, and brings in over a million visitors every year. Popular local activities include swimming, skiing, sailing, fishing, picnicking, and camping.
Despite all of the natural beauty and myriad things to do, home prices are still budget-friendly in Oroville, with the average home running just an estimated $2,252 per month.
9. Red Bluff - $303,243
Situated along the banks of the Sacramento River in the northern portion of the state, the city of Red Bluff has its origins in the 1850s, serving as a supply hub and steamboat port during the Gold Rush era. Today, Red Bluff showcases the past through its charming downtown district lined with historic Victorian architecture.
There’s plenty for residents to do in and around Red Bluff, with multiple museums, shopping and dining, and more than 90 acres of city parks. The city is surrounded by nature, with nearby natural attractions including Mendocino National Forest, Mount Shasta, and water-based activities abound on the Sacramento River and numerous nearby lakes.
Want to enjoy the Red Bluff lifestyle? You can purchase the typical home here with an estimated mortgage payment of $2,281.
10. Wasco - $313,931
Wasco, with a population of around 27,000, sits in the San Joaquin Valley in the central section of the state. Approximately two hours north of Los Angeles, the city's economy is dominated by agriculture. Roses are big business here, with around 40% of the country’s rose supply grown in and around the city.
Residents of Wasco can enjoy local parks, museums, and a growing downtown area that’s currently undergoing revitalization. And don’t miss out on the popular Wasco Rose Festival, an annual tradition since 1969.
Despite being last on our list of affordable cities in California, Wasco remains a budget-friendly option, with the average house available for an estimated $2,361 per month.
California Housing Market Insights
Nobody moves to California to find a cheap home.
According to the California State Legislative Analyst’s Office, “Annual household income needed to qualify for a mortgage on a mid-tier California home in September 2025 was about $221,000—over 2 times the median California household income in 2024 ($102,000).”
Affording a home in the state has become more difficult in recent years as interest rates have risen from their historic pandemic-era lows. The same report states that from January 2020 to September 2025, the typical monthly payment for a mid-tier home has increased by 74%.
Of course, all such reports rely on averages. And California includes some of the most expensive home-price hotspots on earth. But it also includes many places where affordability is a much less challenging issue.
How To Afford More in California
Choosing a home in an affordable area is probably the single most effective way to keep your housing costs low. That’s why we’re publishing our list of the most affordable housing markets in California.
For many who are retiring or who can work remotely, that’s easy. But it’s more difficult for others.
Wherever you choose to buy, you can get a bigger mortgage by getting your finances in good shape. That way, you could qualify for a lower mortgage rate and a larger loan.
If you have time and are able, try to:
- Boost your credit score — Probably the most influential element of a mortgage application
- Reduce your indebtedness — Lenders want to see that you can comfortably afford your payments. Reducing your existing debts gives you extra headroom
- Make a bigger down payment than necessary — You might not be able to save even more than the minimum. But read on for how you might get help
- Choose a home and city or county with low property taxes — That helps cut your outgoings so you can afford more
- Pick the right type of mortgage — Would you be better off with a conventional loan or one backed by the government? Take time to research your options carefully
- Shop around for the best mortgage deal — Federal agency HUD recommends: “Different lenders may quote you different prices, so you should contact several lenders to make sure you’re getting the best price.”
Chances are, you can’t do all those at once. But every little bit helps.
California First-Time Buyer Programs
California has a dizzying array of down payment assistance programs (DPAs) available in the state. Many of these are managed by state, city, or county governments, though some may be offered by non-profits and others.
Each DPA program sets its own rules, eligibility criteria, and assistance packages. So it’s well worth shopping around for the program that best suits you. Some may offer financial support for closing costs as well.
Many offer the full down payment requirement for the loan you’re applying for: 3% of the purchase price for a Freddie Mac- or Fannie Mae-branded conventional mortgage, or 3.5% for an FHA mortgage. So, if you already have some savings, you may be able to make a bigger down payment than the minimum.
You should probably begin by exploring the websites of the two big statewide players: the California Housing Finance Authority and the Golden State Finance Authority.
But be sure to also search online for down payment assistance programs in your city or county. You may be able to find more generous help through those.
Look out, too, for special programs for state, city, or county employees, first responders, credit union members, and others. See your search engine as your friend.
Get Pre-Approved for Your California Home
Many towns and cities across California are affordable for just about any budget. From charming and historic northern California communities like Red Bluff to southern California towns like Twentynine Palms and Blythe, there’s somewhere for everyone in the Golden State. See what home price you qualify for by requesting your pre-approval today.
Methodology
To find the 10 most affordable housing markets in California, we started with average home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2025. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage at 6.395%, the recent 30-day average from rate marketplace I Can Buy based on a buyer with a 700 credit score putting 5% down. We added PMI costs per mortgage insurance provider MGIC and tax rates by state from TaxFoundation.org. Homeowner’s insurance estimates were calculated using Nerdwallet’s cost in each state for $300,000 in dwelling coverage. We multiplied this rate by 67.8%, the U.S. average of total market value represented by the structure according to ResiClub (since homeowners insurance is based on the structure, not total value). We then multiplied this rate by the average home’s total market value. We assumed no HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow data.
Estimated payments are for example purposes only. Not a commitment to lend.
