D
16%
Overall NAT. AVG.
4%
Goods & Services NAT. AVG.
28%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Merced California National
Cost of living116140100
Goods & Services104111100
Groceries104112100
Health care96109100
Housing128196100
Transportation120126100
Utilities140127100

An Overview of Cost of Living in Merced, CA

Are you thinking about relocating, but curious about the potential cost of living in Merced? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Merced stands at 116, making it 16% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

Housing costs are a major factor in the Merced cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 27.9% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

What Do Locals Say About the Cost of Living in Merced?

Nobody knows their city better than the people who actually live there. So, we asked 15 local residents how they would rate the cost of living in Merced and this is how they responded. 33% of people said that the cost of living was affordable, with prices decreasing, while 67% of people said that the cost of living was very expensive and prices continue to rise.

Is Merced Affordable?

Is Merced an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Merced, the median home price is 36.2% higher than what most folks pay across the country, and monthly rent prices are 8.7% higher than the usual rates. Income levels in Merced come in at $49,973, which is 9.7% lower than the national average.

What Factors can Influence the Cost of Living in Merced?

Healthcare: Healthcare expenses and insurance premiums can vary significantly depending on the specific city or state. Factors such as accessibility to healthcare facilities, out-of-pocket expenses for doctor's visits, dental care expenses, prescription costs and specialized medical care fees can all influence the overall cost of living. In Merced, healthcare costs are 4.1% lower than the national average.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Merced, the utilities index registers at 40.4% higher than the national average.

Groceries: Grocery expenditures have undergone notable escalation over the last 2-3 years. In some markets, the cost of food products has surged by more than 20%, while others have experienced only modest increments. These fluctuations in food costs can have a significant impact on the overall cost of living in any region. In Merced, the groceries index registers 3.5% higher than the national average.

Where is the Data From?

The Merced cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Merced is 17% lower than the California average
  • The cost of living in Merced is 16% higher than the national average
  • Merced housing is 28% higher than the national average
  • California general sales tax is 42% higher than the national average
  • California state income tax is 61% lower than the national average

Most Affordable Places to Live in and Around Merced

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Compare Merced, CA Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$72,037$6,003$1,681$2,161
      Renters$35,872$2,989$837$1,076
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Merced, CA, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Merced, homeowners have a median income of $72,037. Using that number, a maximum of $1,681 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $35,872, which means there is a maximum of $837 to be spent on the costs of renting a home or apartment.

      California Sales Tax

      State General Sales Tax With Max Surtax
      California 7.25% 10.5%

      California Income Tax

      State Income Tax (Low) Income Tax (High)
      California 1% 13.3%

      Goods & Services

      Item Merced National avg. Difference
      Haircut $26.83$24.2610.6%
      Beauty Salon $76.57$45.5668.0%
      Toothpaste $3.86$3.704.3%
      Shampoo $1.56$1.2821.9%
      Movie $14.64$12.1320.6%
      Bowling $23.78$18.0032.1%

      Groceries

      Item Merced National avg. Difference
      Ground Beef $6.21$5.846.3%
      Fried Chicken $2.10$1.5733.7%
      Milk $4.99$4.676.9%
      Potatoes $4.98$4.930.9%
      Pizza $15.69$12.0929.8%
      Beer $10.96$10.415.3%

      Health Care

      Item Merced National avg. Difference
      Optometrist $157.88$125.6825.6%
      Doctor $166.71$135.7822.8%
      Dentist $148.27$113.2930.9%
      Ibuprofen $11.69$10.659.8%
      Lipitor $498.45$468.606.4%

      Housing

      Item Merced National avg. Difference
      Home Price $251,500.00$184,700.0036.2%
      Avg. Mortgage Payment $4,545.90$2,346.6993.7%
      Apartment Rent $1,032.00$949.008.7%

      Transportation

      Item Merced National avg. Difference
      Gasoline $4.63$3.4633.9%
      Tire Balancing $70.51$59.9217.7%

      Utilities

      Item Merced National avg. Difference
      All Electricity $299.78$193.9954.5%
      Phone $191.56$192.250.4%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Bear Creek, CA9511110.7%
      Tuttle, CA9711110.7%
      Hornitos, CA7411110.7%
      University of California-Merced, CA011110.7%
      El Nido, CA283963.8%
      Merced, CA84,08111615.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Troy, MI84,05111818.4%
      Mission, TX83,7968614.2%
      Santa Fe, NM84,41811212.3%
      Alhambra, CA84,50916766.7%
      Redwood City, CA84,518267166.7%
      Merced, CA84,08111615.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.