Despite California’s surging house prices, there are still a few counties where properties are affordable to buy. Not convinced? Read on to find out
Updated June 13, 2024
California’s real estate market is starkly different than the rest of the United States. At the state level, home listing prices are more than twice the national median value while cost of living is extremely high.
Still, it is possible for hopeful homeowners to find counties with affordable homes and reasonable costs of living. There are locations where you do not need a huge amount of money for an initial deposit and the monthly mortgage payments are low.
In this article, Mortgage Professional has ranked five counties in the Golden State with affordable real estate prices for the average property buyer. We will also list the median incomes which can support the cost of living in each county as well as the mean travel time to work.
Do you have any clients who want to buy property in California but are intimidated by the state’s property prices? Share this article with them to let them know that there are still budget-friendly counties in this state. These locations are good for residential purposes, and they can also be ideal for real estate investing ventures.
Which county in California is the cheapest?
The cheapest county in California is Modoc County. Its location is in the far northeastern region of the Golden State, bordering the states of Oregon and Nevada.
For better analysis, we will discuss the five most affordable places to live and buy a home in California below:
1. Modoc County
- Typical home value: $189,249
- Median household income: $45,507
- COL: 80.7
- Mean travel time to work: 16 minutes
Modoc County is a quiet and spacious place to live in California. The county’s residential areas are highly accessible to offices, educational institutions, and spaces for outdoor activities.
Modoc County also has several public schools that can be travelled to within five to 15 minutes by car from most locations. This makes it suitable for families with children. These include the Douglas City and Surprise Valley elementary schools.
Regarding housing costs, homeowners with a mortgage typically pay $1,251 per month. This is 32% lower than the national median of $1,828, according to statistics from the Bureau of Census.
The cost of living is also relatively cheaper than California’s average, and this is primarily due to affordable transport and utility rates.
The cheapest homes in Modoc County can be found in Alturas with a median house price of $168,273. Adin and Cedarville are on the expensive side with property values of $248,905 and $257,215, respectively.
However, there is a small drawback for night owls who want to live in this county. There is nothing much to experience if you are after nightlife and entertainment in Modoc County. But for those who are after breathtaking views such as tree-filled mountains, frozen lakes, and traditional ranches, this is the place to be.
Watch this video to discover some of Northern California’s most picturesque sceneries in Modoc County:
2. Lassen County
- Typical home value: $230,534
- Median household income: $59,515
- COL: 88.7
- Mean travel time to work: 20 minutes
With a mix of rural and sparse suburban towns, Lassen County is good for homebuyers who want a quiet neighborhood with accessible amenities.
Formerly a mining and logging area, the county’s economy is now primarily driven by one federal and two state prisons. Job opportunities are mostly concentrated in the county seat Susanville, where you can find half of Lassen’s total population.
The lowest listing prices can also be found in Susanville. The average single-family residence price in this suburban town is $237,019 and you typically must pay less than $1,700 for mortgage repayments.
As for the other locations in Lassen County such as Janesville, the median home price is $316,954, which is at the expensive end of the spectrum. Still, this is much cheaper than California’s median of $786,180.
Utility and healthcare costs in Lassen County are slightly higher than the rest of the Golden State but the overall COL is still 10% cheaper due to affordable grocery, transport, and housing prices.
3. Siskiyou County
- Typical home value: $291,482
- Median household income: $53,898
- COL: 91.7
- Mean travel time to work: 18 minutes
Situated in the northernmost part of California, Siskiyou County has scenic vistas and a highly diverse geography, from the peaks of Mount Shasta to the plains of McCloud River.
It is also the most populous county on this list. However, Yreka, the county seat, and its busiest suburbs are still sparsely populated. This makes Siskiyou County ideal for homebuyers who seek a discreet neighborhood that is closer to nature. You can still easily access workplaces in more populated towns using the county’s intercity buses and Amtrak trains.
Like Modoc County, cheap grocery, utility, and transport costs are significantly lower in Siskiyou, making overall COL cheaper by 61% than the rest of California.
Households also spend about $1,625 per month on mortgage payments, about 12% cheaper than the national median. The lowest home prices can be found in Yreka and Granada.
Here’s a video showing you what to expect when you arrive, as well as help on how to pronounce that name!
4. Sierra County
- Typical home value: $337,842
- Median household income: $52,148
- COL: 84.8
- Mean travel time to work: 31 minutes
If you are after peaceful and quiet surroundings, consider buying a home in Sierra County. With less than 3,300 residents, it is one of the least populated counties in California and second only to Alpine County.
The trade-off is that public transport options are limited to vans run by senior citizen agencies in the area, according to the region’s transportation plan. You will depend on your own car for moving around and getting to work most of the time.
Among the five counties on this list, Sierra County’s listing prices have exhibited the highest price growth. This is likely related to housing supply, since there are only about 2,145 housing units and an 83% occupancy rate in the region, according to the latest census data.
Homeowners with a mortgage currently spend $1,701 per month on housing costs in Sierra County. Cost of living expenses are about 1.1% higher than the national averages, but transportation costs are 4% lower.
5. Colusa County
- Typical home value: $367,052
- Median household income: $59,401
- COL: 100
- Mean travel time to work: 26 minutes
Colusa County’s COL is slightly higher than the nationwide average but still, it is 34% cheaper than living in California’s major metropolitan areas.
Situated in the Central Valley region, the primary economic activities in Colusa County are agriculture, fishery, and forestry – followed closely by manufacturing and retail trade.
Tourism in forested zones is also an economic driver, given that the region is home to several national protected areas like the Delevan National Wildlife Refuge and part of the Mendocino National Forest.
For instance, the US Forest Service regularly hires new forestry recreation technicians and visitor services information officers.
Regarding crime and safety, Colusa County has the safest neighborhoods on this list. Most violent and property crimes rates in the county are significantly lower than the nationwide average, except for burglary which is slightly higher.
If you want to live in an affordable suburban neighborhood, you might want to consider getting a house in Colusa City. However, the cheaper listings can be found in the more rural towns of Maxwell, Lodoga, and Princeton.
Cost of living index
This list above includes the cost-of-living index (COL) per county based on estimates by BestPlaces, an online resource for US demographic data.
The COL is a numerical estimate of how expensive a place is when compared to the national average and is assigned a based score of 100%.
To illustrate this, California has a statewide COL of 149.9, which means that living there is about 50% more expensive than the rest of the country. California is second only to Hawaii with a COL of 165.7.
However, the counties on this list have much lower COL indices primarily due to cheaper housing, grocery, utility, and transport costs.
Measuring housing affordability in California
Numerous factors influence housing affordability in any given location, but median home costs and household salaries play a huge part, according to the US Department of Housing and Urban Development (HUD).
HUD also defines households that use more than 30% of their monthly income for housing expenses as “cost-burdened.”
“These homeowners may find it difficult affording necessities such as food, clothing, and transportation,” says the agency.
However, mortgage payments in California cities typically take 50% or more of the statewide median income of $91,905, according to the US Census Bureau’s latest report.
As such, we examined housing and affordability data at the county level and identified promising locations for homebuyers. Monthly mortgage payments in these locations are lower than the 30% cost-burdened threshold. Moreover, you can find job opportunities and decent accessibility to workplaces in these counties.
Property investing in one of California’s cheapest counties
You can also choose to invest instead of buying a property in the most affordable counties in California. Investing in any of the areas listed above is worth it due to their low property prices and other amenities. As such, return on investment (ROI) can be swift if you go for a real estate investment in these locations.
For instance, it will be a good strategy to lease out your property in any of these counties since renters are attracted to areas where travel is easy. It is also likely that tourists will frequent these places for their captivating views and outdoor activities.
Would you like to buy a property in any of the cheapest counties in California? Share your insights in the comments section below.
