Real Estate News

Want to live in a California city where your salary goes further? Move to Sacramento, study says

A mid-priced Sacramento County home costs $362K. See what you get for that

The median sale price for a home in Sacramento rose to $361,500 in June 2018. These eight homes – including homes in Rancho Cordova, Elk Grove and other parts the county – are priced close to that amount.
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The median sale price for a home in Sacramento rose to $361,500 in June 2018. These eight homes – including homes in Rancho Cordova, Elk Grove and other parts the county – are priced close to that amount.

Not only is Sacramento’s cost of living lower than in many other metropolitan areas in California, but its strong job market makes the region a top destination for people looking to move.

A new report by analysts at the job posting site Indeed.com ranks the Sacramento region sixth in the nation when taking into account salaries, cost of living, the number of job postings on the website over the past year, unemployment rate and projected job growth. Sacramento is the only California metro area that cracked the Top 10.

There’s more. Sacramento also compares favorably to other metro areas in California that have similar job markets. For instance, salaries go 20.9 percent further in Sacramento than in the Oxnard-Thousand Oaks-Ventura area, the analysis found. Your dollar will go 17.6 percent further here than in San Diego and 15.7 percent further than if you lived and worked in Los Angeles.

This seems like good news for Sacramento workers. But there may be another side to the data, too.

The City Council held a three-hour workshop Tuesday to discuss how City Hall can react to what Mayor Darrell Steinberg called “an affordable housing crisis.” City staff compiled a report showing that income growth here has not kept up with the jump in rents and home prices. Some speakers theorized coastal refugees moving here were at least partly responsible for the escalating rents and home prices.

Salary data compiled by Indeed provides more evidence for why people are leaving the Bay Area and Los Angeles and heading inland.

The firm calculated the salaries for all metro areas when adjusted for cost of living (the price of homes, services and physical goods, as measured by the U.S. Bureau of Economic Analysis).

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When adjusted for cost of living, the top six metro areas where your dollar goes furthest are in the Central Valley.

The Merced area tops the list, with an adjusted average salary of $78,983. That’s followed by Modesto ($73,469), Bakersfield ($72,775), Visalia-Porterville ($72,580), Fresno ($71,654) and Sacramento ($71,553).

At the other end are places like Santa Cruz, where adjusted salaries are around $58,000, the Oxnard-Thousand Oaks-Ventura region and Santa Rosa. The average adjusted salary in the San Francisco-Oakland-Hayward area was $64,873 and it was $61,847 in Los Angeles.

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