Top 9 California Cities for Homebuyers: Expert Recommendations

From Sacramento to San Diego, these cities offer growing economies, access to national parks and beaches, and an attractive mild climate.

California captivates the hearts and minds of adventurers, who are perhaps lured by the state’s many beaches, charming small towns, inspiring national parks, and laid-back lifestyle. A little more than 39 million people call the Golden State home, and contrary to popular belief, the most densely populated areas in the state are not its biggest cities along the coastline, but rather its agricultural regions, such as Greenfield, Arvin, and Parlier.

No matter what part of the state you visit or choose to reside in, you’re likely to enjoy California’s beautiful sunny weather, its robust economy, and its diverse communities. If you’re looking to relocate to a place with modern amenities and a bustling social scene, consider California’s lesser-known urban areas — Sacramento, for example, is a wonderful option for those who would prefer to avoid the cost of living in a city like Los Angeles. And if you’re looking for a strong sense of community in a small-town setting, California’s scenic beach towns may be your best bet.

Here are the nine best places to put down roots in California, according to real estate agents in the know.

01 of 09

San Diego

San Diego’s many beaches, family-friendly amenities, and mild climate are some of the main draws for newcomers. In the past decade, the city has become a lot more diverse with distinct neighborhoods, vibrant arts communities, and exciting restaurants, contributing to its cultural richness. San Diego’s economy is favorable as it hosts many leading industries, including biotechnology and semiconductor manufacturing.

“The nation’s leaders in industries like biotechnology and semiconductor manufacturing are here, and it’s easy to see why the area has become so popular,” said Zane Burnett, chief digital officer at Willis Allen Real Estate/Luxury Portfolio International.

However, like many other Southern California cities, the great weather and modern amenities come at a steep price for homeowners.

“During the COVID-19 pandemic, San Diego quickly became one of the most active housing markets in the nation. The median price of a single-family home in San Diego at the beginning of April 2023 was $915,000 — 173% higher than the national average of $281,400 — so it isn’t exactly an inexpensive market,” Burnett explained. “These premiums are what we wryly refer to as the ‘the Sunshine Tax.’

02 of 09

Sacramento

Northern California, and especially the state’s capital, is an increasingly popular option for people seeking a more affordable cost of living and ample job opportunities. Sacramento’s top-notch medical facilities, colleges, and family-friendly communities attract young professionals who enjoy beautiful natural sights and plenty of outdoor activities — the city is at the confluence of the Sacramento and American Rivers, so there’s lots of scenic riverside attractions here.

Sacramento’s real estate market is much more affordable than many coastal urban communities in California. According to Zillow, the median home value is $460,329, making it a relatively wise time to invest in a property here.

“Do it now, because prices always go up in the state of California, regardless of what’s happening in the rest of the country,” said Pat Shea, president of Lyon Real Estate/Luxury Portfolio International. “There’s nothing that compares to this area in California: large homes, excellent year-round weather, and affordability.”

Some of the city’s most popular neighborhoods for home buyers include East Sacramento, El Dorado Hills, Granite Bay, and Land Park.

03 of 09

Santa Rosa

Santa Rosa, the “urban heart” of California wine country, is the perfect home base for those working in winemaking and those who enjoy the fruits of that labor. Located just 55 miles north of San Francisco, this city of about 177,000 (and half a million in its greater metro area) is also known as a creative hub for artists and one of Northern California’s best luxury resort destinations.

“One could easily start the day with a morning hike up Hood Mountain before floating down the peaceful Russian River on a kayak, stopping for a quick picnic at Armstrong Redwoods State Natural Reserve, and finishing the day watching surfers at one of many Sonoma Coast Beaches.” Robby Dearth, a realtor at Vanguard Properties/Luxury Portfolio International and a Sonoma County-native, noted.

The city’s strong jobs market and proximity to the Bay Area have kept Santa Rosa’s real estate market stable, which is great news for potential homebuyers. And according to Dearth, there are plenty of options for every taste, from modern new-builds to homes “with a ton of character and charm.”

04 of 09

Los Angeles

While living in Los Angeles has its challenges, heavy traffic and steep real estate prices included, the city remains one of the best places in California to call home. As the global hub for the film and television industry, and with a myriad of world-class hotels, museums, and restaurants, Los Angeles is a magnet for creative individuals. The sunny weather, beaches, outdoor recreational opportunities, and diverse neighborhoods attract newcomers, too.

“There are great neighborhood pockets perfect for buying your first home, and they are full of culture, friendly people, and cool spots to grab a coffee or a bite to eat,” said Pam Lumpkin, a broker at Hilton & Hyland/Luxury Portfolio International.

05 of 09

San Jose

San Jose is at the heart of Silicon Valley, possessing all the features of a large metro area but with a laid-back and tranquil lifestyle. In fact, the city ranks in the top five places to live in the country, surrounded by quaint areas with family-friendly amenities. Multiple Fortune 100 companies are present, providing San Jose residents with a strong and high-paying jobs market, as well as top-rated schools, all while enjoying proximity to some of California’s most famous and beautiful vacation destinations, such as Lake Tahoe, Napa Valley, Carmel-by-the-Sea, and Big Sur.

“Our local market aligns with tech workers’ job confidence. When the tech industry is performing well, hiring fast and paying large bonuses, our local housing prices seem to follow,” said Alex Bouja of Golden Gate Sotheby’s International Realty. Bouja added that current prices for entry-level homes are between $1.2 and $1.5 million, with the city’s most desirable neighborhoods being located near major highways and downtown.

“For those looking for upscale charm, the Willow Glen neighborhood is always a favorite, with a mix of classic architectural styles and its downtown ‘Avenue’ lined with boutiques and bustling restaurants. The neighborhood surrounding San Jose’s Municipal Rose Garden is also a draw, especially for those who love older, more historic homes,” added Katie Duus of Christie’s International Real Estate Sereno/Luxury Portfolio International.

06 of 09

Santa Barbara

Foodies love Santa Barbara for its Michelin-rated restaurants, while outdoor and water-sports enthusiasts flock to the area for its many hiking trails and surf breaks. Architecture and culture aficionados enjoy strolling through the streets here, as it’s a great city in which to admire Mediterranean Spanish-style buildings. Excellent private and public schools, healthcare facilities, and natural beauty are treats for residents, as is a moderate climate. The downside? Santa Barbara and neighboring Montecito are home to lots of celebrities, contributing to some of the priciest real estate in the state, with the median home value hovering around $1.6 million.

“Santa Barbara real estate was, is, and will always be a strong investment,” said Jasmine Tennis, partner at Riskin Partners Estate Group at Village. “Our unique geographical boundaries mean we will always have a relatively fixed amount of inventory, as we don’t have the same abilities to expand as other markets do.”

07 of 09

Laguna Beach

With seven miles of coastline and some of the most scenic stretches of sand in the state, this friendly beach town in Orange County is perfect for ocean lovers. The streets of downtown Laguna Beach are lined with art galleries, restaurants, independent boutiques, and surf shops. This creates a vibrant community atmosphere that appeals to residents and visitors alike.

One of the most popular neighborhoods in the city to own real estate is Three Arch Bay in South Laguna. In addition to its many resort-style amenities, the area attracts families with top-rated schools within Laguna Beach Unified School District.

However, as inventory here is very limited, it’s wise for home buyers to work with a real estate agent who can notify you of for-sale properties that aren’t necessarily advertised publicly, as many homes are sold off-market here, according to Donna Pfanner of Pacific Sotheby’s International Realty.

08 of 09

Fresno/Clovis

Originally an unassuming stop among the farmed landscapes of the San Joaquin Valley, Fresno and neighboring Clovis are now bustling with activity. While agriculture provides about a fifth of jobs in the area, other large employers include government and military organizations, hospitals, and schools.

Moreover, Fresno and Clovis’s biggest draw is the cities’ proximity to several national parks and historical sites. This includes destinations such as Yosemite National Park, Sequoia & Kings Canyon National Parks, and Sierra National Forest.

“In Fresno, there are several exciting events such as art hops, local wineries, and the beautiful Woodward Park, which has plenty of walking and biking trails,” said Christy Sasser, a Redfin principal agent who grew up in the region.

“Downtown Clovis is a fantastic area to explore too, with a plethora of shops, restaurants, bars, and farmers’ markets. The famous Clovis Rodeo is also held here, making it an ideal location for a leisurely stroll.”

Despite increasing interest rates, the real estate market in Fresno and Clovis remains strong. Even though home values are at an all-time high, the area is still much more affordable than other major markets in the state. In Fresno, the median home value is $357,908, and in Clovis: $487,059.

09 of 09

San Francisco

With its steep hills overlooking the city, eclectic blend of architecture, and iconic landmarks like the Golden Gate Bridge, Alcatraz Island, and Coit Tower, San Francisco remains an exciting city for newcomers to explore. Add to that list diverse and family-friendly neighborhoods, beautiful parks, a stellar dining scene, and a strong job market. Therefore, it’s no wonder many choose to make San Francisco their home.

“While the cost of living in San Francisco can be high, the trade-off is the ability to live in one of the most socially dynamic and uniquely beautiful cities in the world — where urban life and nature’s beauty collide,” said David Chol, chief operating officer of Vanguard Properties/Luxury Portfolio International.

He explained that despite the recent layoffs and turmoil in the city’s tech industry, the local housing market is still stable, and the median home price is $1,277,409.

“As the old adage goes, ‘real estate is all about location, location, location,’ something that San Francisco will always have in spades,” Chol added, noting that the most sought-after areas in the city are Pacific Heights, Noe Valley, Russian Hill, and the Mission District.