Merced housing market is a ‘hidden gem.’ What makes it one of the best in US?
Merced has one of the best “hidden gem” housing markets in the United States, according to GoBankingRates.
In a new report, the personal finance website highlighted a total of five California cities as places “where affordability and livability best intersect,” making them ideal for homebuyers.
“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.
“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 where Merced ranked among the nation’s top “hidden gem” housing markets, and why:
What makes Merced a top spot for California homebuyers?
Merced landed at No. 30 on GoBankingRates’ list of the best hidden gem housing markets in the United States in 2025.
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. That is roughly $400,000 below state average.
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, GoBankingRates said.
What’s the best ‘hidden gem’ housing market in California?
Four other California cities made GoBanking Rates’ list of the nation’s top 30 hidden gem housing markets — 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.
Ridgecrest in northeastern Kern County came in eighth place on the list.
Hanford in Kings County was No. 14, and the Shasta County city of Redding was No. 21.
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 GoBankingRates, cities were evaluated based on how their average home values compare to state averages as well as livability, median household income and typical mortgage costs.
