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Merced named a ‘gateway city’ for affordable retirement. Here’s why

California’s coastline, mountain ranges and national parks make it a desirable place to live — but also one of the most expensive.

However, Merced offers more affordable options for retirees, according to a new report.

Islands.com — a travel website known for destination guides, hotel reviews and vacation inspiration — named the small Central Valley city a “Yosemite gateway city” for affordable retirement..

Merced offers more affordable options for retirees, according to a new report.
Merced offers more affordable options for retirees, according to a new report. Horsche/Getty

“If you’ve been dreaming of spending your golden years just a stone’s throw from the Golden State’s natural wonders, Merced might be the right place for you,” the travel website said in its Nov. 14 report.

What makes Merced a great spot for retirees?

Here’s the Islands.com found:

A monument welcoming motorists to Merced is seen along northbound Highway 99 near East Mission Avenue in Merced, Calif., on Tuesday, June 3, 2025.
A monument welcoming motorists to Merced is seen along northbound Highway 99 near East Mission Avenue in Merced, Calif., on Tuesday, June 3, 2025. Andrew Kuhn akuhn@mercedsun-star.com

Is Merced a good place to retire in California?

According to Islands.com, Merced is a strong choice for retirees who want to stay close to nature.

“Both Yosemite National Park and Sierra National Forest are within driving distance, and Merced itself has green spaces where you can savor the surroundings,” the travel website said in its report.

Whether you want to tackle the towering El Capitan or enjoy an easy walk around Mirror Lake to see Half Dome reflected in the water, Islands.com said, Merced is a “perfect base for exploring Yosemite National Park.”

The national park’s central gate is less than a two-hour drive away from Merced.

Yosemite National Park visitors take a look at El Capitan rock formation, left, and Bridalveil Fall from Tunnel View in Yosemite Valley in 2023.
Yosemite National Park visitors take a look at El Capitan rock formation, left, and Bridalveil Fall from Tunnel View in Yosemite Valley in 2023. CRAIG KOHLRUSS Fresno Bee file

“While you’ll find a new adventure every time you visit Yosemite, don’t overlook the natural gems closer to the city, like Merced National Wildlife Refuge,” the site said.

The Merced National Wildlife Refuge spans 10,200 acres of marshes, grasslands and floodplains.

This “haven offers hiking, birdwatching, hunting, and picnicking opportunities,” according to Islands.com.

For a fun family outing, you can visit Applegate Park Zoo, which is home to more than 75 animals native to California.

Kids can see bobcats, raccoons and bears, and even interact with friendly domestic animals including ducks and goats.

The Applegate Park Zoo in Merced, Calif., on Friday, Aug. 22, 2025.
The Applegate Park Zoo in Merced, Calif., on Friday, Aug. 22, 2025. Andrew Kuhn akuhn@mercedsun-star.com

How far is Merced from major California cities?

Another reason Merced is appealing to retirees is its central location, according to Islands.com.

The city is about a two-hour drive from San Francisco or San Jose, less than two hours by car from Sacramento and roughly an hour-long drive from Stockton or Fresno.

With a variety of nearby attractions and a lower cost of living than many other California cities, Merced gives retirees the chance to enjoy new experiences without breaking the bank, according to Islands.com.

A new welcome sign greets motorists along westbound Highway 140 near Campus Parkway in Merced, Calif., on Tuesday, June 3, 2025.
A new welcome sign greets motorists along westbound Highway 140 near Campus Parkway in Merced, Calif., on Tuesday, June 3, 2025. Andrew Kuhn akuhn@mercedsun-star.com

How much does it cost to live in Merced?

It’s much “more budget-friendly” to live in Merced compared to other California cities, according to Islands.com.

“The median home value in Merced is $347,700, according to Niche.com, while in Los Angeles, it is $879,500,” Islands.com said. “Rent prices in Merced average at around $1,290.”

The city also has several retirement communities, including The Hampshire, Merced Senior Living, Park Merced Assisted Living and Mission Gardens.

“Basically, your needs are taken care of — all you have to do is plan where you’re going to spend that pension,” the site said.

CHRISTOPHER WINTERFELDT/cwinterfeldt@mercedsunstar.comThe Merced Theatre Tower is lit up on a cool and clear evening during the spring time Art Hop on Saturday (4-20-13) in downtown Merced.
CHRISTOPHER WINTERFELDT/cwinterfeldt@mercedsunstar.comThe Merced Theatre Tower is lit up on a cool and clear evening during the spring time Art Hop on Saturday (4-20-13) in downtown Merced. Christopher Winterfeldt

What is there to do in Merced?

If you’re looking for something to do besides enjoy the great outdoors, Islands.com said, Merced has some fun spots to check out.

“With an abundance of attractions, each day brings something new in this city,” the travel site said.

Islands.com highlighted the Merced County Courthouse Museum, where visitors can step back in time with a recreated courtroom, blacksmith workshop and vintage classroom.

It also featured the Merced Multicultural Arts Center, offering painting and drawing classes for both kids and adults.

“If you’re going to retire in Merced, you have to make sure your morning coffee is 100% liquid gold,” the site said.

You can start your day at Hola Cafecito — recently named the local favorite coffee shop by Merced Sun-Star readers — with a specialty drink, such as a cafe con leche or a matcha horchata.

A monument welcoming motorists to Merced is seen along southbound Highway 99 near West 16th Street in Merced, Calif., on Tuesday, June 3, 2025.
A monument welcoming motorists to Merced is seen along southbound Highway 99 near West 16th Street in Merced, Calif., on Tuesday, June 3, 2025. Andrew Kuhn akuhn@mercedsun-star.com

“Besides coffee, you’re going to need wine, and luckily, Merced has Vista Ranch,” Islands.com said.

Vista Ranch offers wines including Golden State pinot grigio, Big Trees red wine and cabernet sauvignon.

“Before making any decisions on retiring here, you can spend a few days exploring the area and staying at one of the many hotels in the city,” Islands.com said.

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Angela Rodriguez
The Modesto Bee
Angela Rodriguez is a service journalism reporter for The Bee. She is a graduate of Sacramento State with a bachelor’s degree in journalism. During her time there, she worked on the State Hornet covering arts and entertainment.
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