Prospective buyers in California may have trouble landing their forever homes in cities like Los Angeles or San Francisco due to expensive home prices. For those with a little flexibility on location, a March study from Go Banking Rates revealed which California cities had more affordable home values.
The study, which details the cheapest places to buy a home in each state, found five California cities with an average home value of less than $350,000, significantly cheaper than the $1.1 million average home price in Los Angeles, based on data from Realtor.com.
California cities with the cheapest home prices include:
- Oildale (Kern County): Average home price: $248,001
- Porterville (Tulare County): Average home price: $278,057
- Delano (Kern County): Average home price: $278,057
- Tulare (Tulare County): Average home price: $310,699
- Calexico (Imperial County): Average home price: $315,277
Researchers analyzed Zillow and the U.S. Census Bureau data to determine which cities housed the state’s cheapest homes nationwide.
For California, the cities with the cheapest home prices also have less than 70,000 residents.
Finding a city with affordable home prices in California is a rare gem, especially as home prices have skyrocketed across the Golden State in recent years.
Josh McDonnell, the Assistant City Manager for Tulare, credits city officials for helping home prices in the area stay affordable. Still, he isn’t oblivious to the fact that home prices in the area could increase over time.
“The City of Tulare continues to be the affordable choice for those wanting urban, suburban, or rural living options. The city is also careful to keep the entitlement and permitting processes as streamlined as possible,” McDonnell told KTLA.
For prospective buyers looking to find affordable home prices in California’s big cities, many homes, primarily in the Bay Area, sold below the asking price in January.
A recent study from Redfin found that the rate of people looking to leave San Francisco has started to slow as home prices in the Bay Area dip.
Experts say the dramatic year-over-year price drops and fizzling competition seen in the Bay Area may not hit the rest of the state the same way.