Pros, cons, key stats, and the strongest California cities to consider. Based on our analysis of 568 tracked California city markets.
It depends on your budget and city choice. The better answer is city-specific: California contains both stronger and weaker markets, and the right fit depends on your budget, job needs, climate tolerance, and tax situation.
Pros
- Best year-round weather of any large state
- Diverse geography (beach, mountains, desert, forest)
- Highest-paying tech and entertainment jobs in the US
- Top-tier higher education (UC system, Stanford, Caltech)
- Vibrant cultural scene
Cons
- By far the most expensive housing in the US
- Highest state income tax (top rate 13.3%)
- Wildfire risk significant in many areas
- Regulatory and tax complexity for businesses
- Out-migration to TX, AZ, NV continues
What this means in practice
Across 568 tracked California city markets, the median home costs $748,855 with a 1-year change of -0.2% and a median momentum score of 60 out of 100.
On taxes, Highest income tax in the country (top 13.3%). Prop 13 keeps property tax effective rate low. High sales tax. That matters because the cheapest state on paper can still be expensive if property tax, insurance, or local housing costs overwhelm the headline rate.
State-level averages mask city-level variation — within any state, individual cities can have radically different cost, climate, and trajectory. Use the strongest-momentum cities below as a starting point.
Top 5 California cities by momentum
- Montecito — momentum 87, median $5,630,816
- Imperial — momentum 84, median $440,992
- Heber — momentum 80, median $395,365
- Newport Beach — momentum 78, median $3,709,420
- North Tustin — momentum 77, median $1,777,295