These 5 California cities have ‘hidden gem’ housing markets. Which ones?
Looking to buy a home without breaking the bank?
A new report from personal finance website GoBankingRates highlights more than two dozen “hidden gem” housing markets in the United States “where affordability and livability best intersect” — and five are in California.
“These hidden gems offer significantly lower home prices than their state averages, manageable mortgage costs and solid median incomes — along with strong livability ratings,” GoBankingRates said in its Sept. 15 report.
The No. 1 city listed in the America’s 30 Best Hidden Gem Housing Markets of 2025 report was Lynchburg, Virginia, followed by cities in New York and Wisconsin.
Two California cities made the top 10, according to GoBankingRates.
“From college towns to lakeside communities, these markets are quietly thriving and poised to attract savvy buyers in the months ahead,” GoBankingRates said.
Here’s which California cities ranked among the top “hidden gem” housing markets in the nation, and why:
What’s the best ‘hidden gem’ housing market in California?
Five California cities made GoBanking Rates’ list of the 30 best hidden gem housing markets in the United States in 2025 — including Blythe at No. 4.
The small city sits along the Colorado River on the California-Arizona border, about 220 miles east of Los Angeles and 150 miles west of Phoenix.
According to GoBankingRates, homes in Blythe are more affordable than the state average, with an average home value of $232,672. That’s roughly $565,000 below California’s average home value of $798,043.
The average monthly mortgage in Blythe is $1,332, while the Riverside County city scores 71 out of 100 on livability.
Blythe residents have a median household income of $51,984, GoBankingRates said.
Why does Ridgecrest rank among best places to buy homes?
Ridgecrest ranked eighth on GoBankingRates’ list of hidden gem housing markets.
The city in northeastern Kern County had a livability score of 70, the personal finance site said.
Homes in Ridgecrest are valued at $273,927 on average.
The typical monthly mortgage in the Central Valley city is $1,568, and the median household income is $88,107, according to GoBankingRates.
How affordable is housing in Hanford?
Another Central Valley city, Hanford ranked 14th on the list of America’s best hidden gem housing markets.
Hanford, which is about 35 miles south of Fresno in neighboring Kings County, offers significantly more affordable housing than much of the state, according to GoBankingRates.
The average home in Hanford is valued at $375,055, the site found.
With a livability score of 75, a median household income of $73,544 and an average monthly mortgage of $2,147, Hanford stands out as an affordable option for budget-conscious homebuyers, GoBankingRates said.
How cheap are home prices in Redding?
Redding landed at No. 21 on GoBankingRates’ list of hidden gem housing markets.
Part of Shasta County, Redding is about 160 miles north of Sacramento and 120 miles south of the Oregon border.
Home prices in Redding averaging at around $394,762, according to GoBankingRates.
The Northern California city has a livability score of 75, a median household income of $69,443 and an average monthly mortgage of $2,260, the site said.
What makes Merced a top spot for California homebuyers?
Merced was the third Central Valley city to make GoBankingRates’ list, ranking at No. 30.
The Merced County seat is along Highway 99, about 50 miles north of Fresno.
The typical home in Merced is valued at $400,681, the study said.
With a livability score of 75, a median household income of $59,938 and an average monthly mortgage of $2,294, Merced stands out as a budget-friendly option in a state known for high housing costs, according to GoBankingRates.
Where are top 10 hidden gem housing markets in US?
According to GoBankingRates, these were the top 10 housing markets in the United States considered “hidden gems” in 2025:
- 1. Lynchburg, Virginia
- 2. North Tonawanda, New York
- 3. Wausau, Wisconsin
- 4. Blythe
- 5. Aberdeen, Washington
- 6. Keene, New Hampshire
- 7. Central Point, Oregon
- 8. Ridgecrest
- 9. Logan, Utah
- 10. Wyandotte, Michigan
How did GoBankingRates come up with list?
To create its list of America’s best hidden gem housing markets, GoBankingRates looked at data from Zillow, AreaVibes, Sperling’s BestPlaces, the U.S. Bureau of Labor Statistics and the Federal Reserve.
“Cities were weighted based on how they rank in multiple categories, and an overall score was determined — producing a list of the nation’s best blends of affordability and livability,” the personal finance site said.
According to GpBankingRates, cities were evaluated based on how their average home values compare to state averages, livability scores, median household income and typical mortgage costs.
This story was originally published October 21, 2025 at 5:00 AM with the headline "These 5 California cities have ‘hidden gem’ housing markets. Which ones?."
