Is California a good place to live? The short answer
California works well if your income can carry its housing costs and you value its job market, coast and outdoors. It works badly if you need a low-cost home on an average income. Four numbers frame the decision:
- $761,538: Zillow's typical California home value, September 2026.
- 19%: the share of households that could afford the median single-family home in the second quarter of 2026, per the California Association of Realtors (C.A.R.).
- 5.1%: the state unemployment rate in September 2026, down from 5.5% a year earlier, per the Employment Development Department (EDD).
- 34: National Park Service sites in California, from Yosemite to Joshua Tree.
The rest of this guide sets out the main pros and cons with sources, what the state costs and what salary it takes, who is moving in and out, and a checklist for deciding.
Pros of living in California
Pro: a large job market that is still growing
California is still adding jobs faster than the nation. EDD counted 129,300 more nonfarm jobs in September 2026 than a year earlier, growth of 0.72%, against 0.31% for the U.S. Gains in September came mainly from private education and health services and from professional and business services. The state's technology, entertainment, ports, agriculture and aerospace sectors give workers more fields to move between than most states offer.
Pro: a high wage floor
The statewide minimum wage is $16.90 an hour in 2026 for all employers, according to the Department of Industrial Relations, and some cities and industries set higher rates. It lifts earnings in service jobs, though it does not close the gap with housing costs.
Pro: national parks, mountains and coast
The National Park Service manages 34 sites in California. They include Yosemite, Sequoia and Kings Canyon, Death Valley, Joshua Tree, Channel Islands, Lassen Volcanic, Pinnacles and Redwood National and State Parks. Within a few hours' drive of most cities you can reach beaches, the Sierra Nevada, desert and wine country.
Pro: some of the cleanest air in the country, in places
Air quality depends heavily on where you live. The American Lung Association's 2026 State of the Air report, covering 2022 to 2024, listed Salinas and Chico among the cleanest U.S. cities for ozone, and Santa Maria-Santa Barbara and San Luis Obispo-Paso Robles among the cleanest for short-term particle pollution, with zero unhealthy days.
Pro: long-run home value growth
Owners have built equity over time. Zillow's typical California home value rose 72.0% in the ten years to September 2026, and Orange County's rose 94.3%. Past growth does not promise future growth, and values in some northern counties are lower than five years ago, but long-term owners in most of the state have gained.
Pro: predictable property taxes under Prop 13
Proposition 13 sets the base property tax rate at 1% of the purchase price plus local bonds, and limits increases in assessed value to 2% a year while you own the home. Your tax bill is set mainly by what you paid, not by how fast the market rises around you. Our California property tax guide explains bills by county, and the Prop 19 guide covers moving your tax base.
Pro: a wide range of places and prices
California is not one market. C.A.R.'s September 2026 single-family medians ranged from $377,150 in the Far North and $500,000 in the Central Valley to $1,325,000 in the Bay Area. In its second-quarter 2026 index, half of Lassen County households could afford the median home, against 6% in Mono County. You can trade commute time and coastline for a much lower price without leaving the state.
Pro: more room to add a unit
State law makes it easier to build an accessory dwelling unit on a single-family lot. California added 29,710 ADUs in 2025, an 11.42% increase on the year before, according to the Department of Finance. For owners, an ADU can house relatives or bring in rent; see our California ADU rules guide.
Cons of living in California
Con: housing is expensive almost everywhere on the coast
C.A.R. estimated that a buyer needed a minimum income of $228,400 a year to afford the $916,750 median single-family home in the second quarter of 2026, a monthly payment of $5,710 with taxes and insurance. Even the median condo, at $670,000, needed $166,800. Renters face high rents too; city figures are on each local guide.
Con: gas and electricity cost far more
The U.S. Energy Information Administration put California's regular gasoline at $5.888 a gallon for the week of October 26, 2026, against $4.269 nationally. Electricity rates are also well above the U.S. average. Our cost of living in California guide has the full breakdown.
Con: high income tax rates at the top
California's income tax runs from 1% to 12.3% across nine brackets, according to the Franchise Tax Board's 2025 rate schedules, and an extra 1% applies to taxable income over $1 million. Compare the full picture before moving from a state with no income tax; see California vs Texas and California vs Florida.
Con: wildfire risk and the insurance squeeze
Wildfire now shapes where and how people buy. The January 2025 Eaton and Palisades fires destroyed 11,160 housing units, according to the Department of Finance. In high-risk areas owners who cannot find a regular insurer turn to the state's insurer of last resort, the FAIR Plan, which raised dwelling rates by about 29% overall for new and renewal policies from October 15, 2026, KRCR reported. Check a home's fire hazard zone and get an insurance quote before you offer; see our wildfire zones guide and FAIR Plan guide.
Con: earthquakes
The U.S. Geological Survey's long-term forecast (UCERF3) estimates that an earthquake of magnitude 6.7 or larger, the size of the 1994 Northridge quake, strikes somewhere in California about once every 6.3 years on average, and puts the chance of a magnitude 8 or larger in the next 30 years at about 7%. Standard home policies exclude earthquake damage; see our California earthquake insurance guide.
Con: the worst ozone in the country in some regions
The same 2026 Lung Association report ranked Los Angeles-Long Beach the most ozone-polluted U.S. city, with 159.2 unhealthy days a year, and Bakersfield the worst for annual particle pollution. Eight California cities, including Visalia, Fresno, San Diego and Sacramento, were on the most-polluted ozone list. If you have a respiratory condition, check the report for your county.
Con: a slower job outlook
Unemployment of 5.1% in September 2026 is lower than a year ago, but C.A.R.'s forecast projects California job growth of only 0.3% in both 2026 and 2027, and an unemployment rate of 5.4% in 2027. In September 2026 alone, leisure and hospitality lost 9,600 jobs and manufacturing 4,000, per EDD.
Con: competition and long waits in some markets
Buying is a contest in the Bay Area: Redfin's September 2026 figures show 78% of San Francisco County homes selling above list price, at an average of 119.3% of the asking price. Elsewhere homes sit longer, but sellers are slow to cut. Read our California housing market guide for county-by-county conditions.
Salary needed to live in California
MIT's Living Wage Calculator, updated February 15, 2026, estimates the pre-tax income needed to cover basic costs in California without public help:
| Household (MIT living wage, California) | Hourly wage | Annual income before tax |
|---|---|---|
| 1 adult, no children | $30.48 | $63,402 |
| 2 adults, 1 working, no children | $39.35 | $81,856 |
| 2 adults, both working, 2 children | $36.38 each | $151,355 |
These are survival budgets, not comfortable ones. MIT's housing cost for one adult is $23,383 a year, roughly the cost of a modest rental. Buying the median single-family home takes the $228,400 C.A.R. estimates, so plan on two incomes, equity from a previous home or a lower-priced area. MIT also publishes figures by county, which vary widely.
Who is moving to and from California
Population is flat
The Department of Finance estimated California's population at 39,593,000 on January 1, 2026, a dip of about 54,000, or 0.14%, in 2025. It was the first annual decline after three years of growth. Births exceeded deaths by 108,200.
Domestic moves: more leaving than arriving
Net domestic out-migration, people moving to other states minus those arriving from them, rose to 288,600 in 2025, according to the Department of Finance. Net legal international migration, which had offset that loss, fell by more than half to 126,400. If you are weighing a move out, see our moving out of California guide.
Inland counties are growing
Movement within the state favors inland areas. Placer County grew fastest in 2025 at 1.39%, followed by Yuba, San Benito, Madera, San Joaquin and Sacramento counties. Los Angeles County lost 64,000 residents, which the Department of Finance attributes partly to the wildfires and to the usual flow of residents to the Inland Empire. See Roseville, Folsom and Lincoln in Placer and Sacramento counties.
Retiring in California
Retirement in California is mainly a housing decision. Owners who sell a long-held home often have large equity, and Prop 19 lets homeowners 55 and older move their Prop 13 tax base to a replacement home anywhere in the state up to three times. That can keep property tax low after downsizing. The rules are on our Prop 19 guide.
Consider insurance costs, the distance to medical care and the fire and heat risk of inland areas before choosing. Our guides to the best places to retire in California and 55-plus communities in California compare options with price data.
Where to live in California
Where you settle changes the answer more than anything else. Our ranked guides use the same data for every place:
- Best places to live in California
- Best places to live in Southern California and Northern California
- Cheapest places to live in California
- Best beach towns in California and best small towns
As a rough guide to price bands: Zillow's typical home value in September 2026 was $385,686 in Bakersfield, $470,552 in Sacramento, $641,514 in Riverside, $927,891 in Los Angeles, $1,353,869 in San Jose and $3,592,240 in Palo Alto.
Should you move to California? A checklist
- Price your housing first. Look up the typical value and rent for the city you want, not the state average. Our average home price guide has county and city figures.
- Get an insurance quote early. In wildfire zones, insurance can decide whether a home is affordable.
- Run your income tax. Use the Franchise Tax Board's rate schedules with your expected income.
- Test the commute. Drive it at rush hour before you sign.
- Check hazards by address: fire hazard zone, earthquake fault zone, flood zone and air quality.
- Visit in the hot season. Inland summers are very different from the coast.
- Compare with your current state. See California vs Arizona and California vs Nevada.