In the rolling hills of the fertile San Joaquin Valley, where the stony shroud of Half Dome rises to the east and sandhill cranes and monarchs dazzle against the sunset in the west, there is an important and unassuming city many have never even heard of — Merced, California. Named for the river that roars icy through Yosemite in the winter months and hushes with snow melt in the summer, Merced is a fast-growing, vital community in California’s agricultural core.
With more than 90,000 residents in the town and nearly 300,000 in Merced County, Merced is a rapidly growing region in the fruit basket of America. The city was founded in 1872 by the Central Pacific Railroad, and it’s been an agricultural distribution and processing hub ever since. Merced is only an hour from Fresno and just two and a half from San Francisco, making it increasingly popular with commuters. Within the next five years, high-speed rail services promise to cut those numbers nearly in half, bringing the Central Valley tantalizingly closer to the Bay Area.
Merced’s population has increased steadily over the past 10 years, gaining nearly 20,000 people while San Francisco’s population has dwindled. Affordable housing costs and more spacious living conditions have become increasingly appealing to families who have been priced out of pricier markets on the coast. Although nearly three-quarters of the city commutes to work (10% to the Bay area), Merced’s job market represents an ever-growing diverse swath of industries, from ag-centric processing and distribution to manufacturing and environmental sciences. As the campus of UC Merced celebrates its twentieth year in the city, it’s hard to overestimate the value of having the university in the area. It provides local students with an excellent — and affordable — educational pathway and creates meaningful research partnerships with the business community, fostering a new economic base in one that’s historically been volatile.
And it’s not just the workplace Merced provides access to — it’s also the rich, natural treasures within easy reach. Merced is often called the Gateway to Yosemite, and the national park is only an hour’s drive from the city. So, if you want whitewater rafting, rock climbing and hiking to be a part of your weekly rotation, Merced is a great place to live. Within the city, historic buildings, interesting museums and terrific parks make Merced a fun and family-friendly place to unwind.
If you’re looking for a vibrant — and practical — city in California to call home, Merced should be on your list. Learn more about the city below in our Moving Guide to Merced, where we’ll discuss the weather and climate, the cost of living, the job market and the unique experiences awaiting you in this Central Valley city.
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If you are looking for a warm, sunny and dry climate, Merced will check all your boxes. This semi-arid, San Joaquin Valley hub receives an average of only 11 inches of rain a year, though 2023 and 2024 were both wetter than average.
In this Mediterranean climate, temperatures only occasionally dip below the freezing point. The average wintertime low is around 37 F, and measurable snowfall is basically unheard of. Still, nighttime temperatures can get nippy, so having some good cold-weather gear is wise, especially if you plan on exploring Lake Tahoe and Yosemite in the colder months.
Most of the rain the city receives falls between November and April — you’ll rarely see more than a few drops from June to September. In July and August, daytime temperatures will be oppressively hot, reliably breaking the 90-degree mark and frequently hitting the low 100s F.
Although Merced is surrounded by very high-risk zones for wildfire, the city itself has a relatively moderate risk, according to FEMA. The waterways in the area also make it quite prone to flooding. That said, conditions can change rapidly and tragically, as we see more and more often.
The cost of living in the San Joaquin Valley is higher than the national average but far below norms in the state of California. The median home value in Merced is just $347,700 — virtually half the cost of the average home in the Golden State, and a tiny fraction of the value of homes in San Jose and San Francisco, which now well exceed the million-dollar mark. At $1,293, median rental prices in Merced fall even below the U.S. average.
But income and educational levels in Merced also lag behind nationwide figures and even neighboring Central Valley cities like Bakersfield and Fresno. The median household income is Merced $59,938 — that’s more than 18,000 below the U.S. average. Only 77% of residents have completed high school and 18% have earned a bachelor’s degree or higher.
With just under 94,000 residents, Merced can feel like a small town in comparison to the bustling Bay Area, especially the densely packed San Francisco area. And though the population is certainly expanding rapidly, the low population density and approachable living costs make it highly appealing to commuters.
Like many cities within the San Joaquin Valley, Merced suffers from relatively high unemployment, and in December 2024 the rate stood at 9.5%. In this agricultural center of the nation, the nonfarm civilian workforce contains only 77,600 jobs compared to 120,700 in the total labor force, a much lower percentage than you’ll find in most metros around the country.
72% of Merced residents commute to jobs outside the city and 10% of residents commute to the Bay Area. If you’re planning to be one of them, you’re in for a long haul — it can take more than 150 minutes to reach the area by car. But there are diverse industries in Merced — from food & beverage to environmental science — and the options are likely to expand with a population growing as fast as this one.
The government is the single biggest employment sector in the region, with nearly 30,000 workers. Trade, transportation and utilities employ 13,900, and distribution companies favor centrally located cities like Merced. Education and health services support 13,000 jobs, and UC Merced is a big reason for this. As the newest member of the estimable University of California system — this campus has developed a promising reputation of its own since its founding in 2005. Manufacturing is the other industry of note in Merced. More than 10,000 are employed in this field, working for places like food can producer Mauser, boat manufacturer Fine Line Industries and Wellmade, which produces everything from lighting to wheelbarrows.
Thanks to Merced’s proximity to Yosemite and other national parks, leisure and hospitality is also a significant industry in the area. 7,400 people work in tourism here, and Downtown Merced has gone through some serious revitalization efforts, bringing boutique hotels like El Capitan back to life and restoring the old Mainzer Theatre.
With so many residents commuting outside the city for work, high-speed rail (HSR) service to Merced really cannot arrive fast enough. By car, it could easily take 2 1/2 hours to reach the Bay Area or Bakersfield, and even longer with public transportation, unfortunately. With HSR, the trip to Bakersfield could be only 90 minutes. The service is scheduled to start by 2029.
But being centrally located in the San Joaquin Valley does have its advantages. You can reach any destination in the state in a single day’s drive, along with Reno and Las Vegas. If you just need to travel within the area, The Bus — the nickname for Merced’s Regional Transit System — can take you anywhere you need to go.
Air travel isn’t super easy from Merced, though. The Merced Regional Airport serves just two cities — Las Vegas and Los Angeles — so you’ll need to depart to one of the many Bay Area airports to reach destinations outside the state or plan on at least a two-legged flight to your destination.
Often called the Gateway to Yosemite, Merced is close to many popular attractions, like national parks, but the city has plenty of recreational standouts of its own.
The Merced Theatre and the MAC — the Merced County Arts Center — are hubs for creativity. See a ballet performance inspired by The Great Gatsby, or view work by local artists, like Christopher Viney, in one of the Mac’s five galleries, where you can also attend artist talks and exhibition openings.
History buffs will want to visit the Merced County Courthouse Museum, one of the oldest buildings in the state. The three-story Italianate stunner houses important city archives, from newspapers and photographs to county records, and it hosts exhibitions related to the historic building and the city.
Merced was once an important military installation, but the former Castle Air Force Base has now been converted into Castle Airport, which hosts the annual Castle AirFest & Family Fun Day, and the Castle Air Museum. The Museum boasts an impressive collection of historic aircraft, from the tailless Avro Vulcan to the unmanned, miniature Kawasaki KAQ-1. One of the highlights of the museum is the tour of the retired Air Force One, a Douglas VC-9C that transported every sitting president from Gerald Ford to George W. Bush.
Just north of UC Merced is one of the top outdoor recreation sites in the region — Yosemite Lake. This man-made reservoir was built to irrigate local agriculture but it’s also a popular park, with a beach and boat-friendly water. Pack a picnic for lunch and cool off in the alpine-ringed lake during the summer, or hoist your sails when the winds are with you.
In addition to its tennis court, volleyball nets and skate park, Applegate Park is home to the Merced Applegate Zoo. Most of the residents here are rescues and native to California, from black bears to owls, foxes and wildcats. A city bike trail runs along the park’s northern edge, following Bear Creek, and it can take you nearly 25 miles around the city.
The Merced National Wildlife Refuge is the best place to experience nature in the immediate vicinity. More than 10,000 acres have been designated to protect species like bald eagles, sandhill cranes, monarch butterflies, bobcats and burrowing owls. The landscape here is diverse — encompassing grasslands, wetlands and woodlands — and you can explore the grounds on kid- and-dog-friendly hiking trails or on the 5-mile auto tour around the property. Hunting certain waterfowl is also permitted by reservation.
The city’s namesake — the Merced River — doesn’t actually flow through the city of Merced, but you can access its chilly, turbulent wonders in Yosemite National Park. Fly fishing, whitewater rafting, kayaking and tubing are just a few of the ways to enjoy this gorgeous body of water. Rafting season is short because it’s dependent on snowmelt, but from mid-July through the end of August you can usually rent rafts in Curry Village and catch a shuttle back.
Yosemite is only 90 minutes from Merced, putting awe-inspiring views and challenging hiking and climbing within easy reach. On the drive out, pick up some locally grown snacks at the Merced Fruit Barn, which stocks fresh produce along with dried fruit and nuts. They also whip up tasty sandwiches that beat fast food any day. The café’s barnyard is irresistible to anyone — small or tall — so plan to save a few minutes to greet the goats, tortoises and exotic birds before you hit the road.
Looking for other fun road trips within easy reach? The Monterey Bay Aquarium is just 120 miles from Merced, as is Cannery Row — the famous packing district in Steinbeck’s novel of the same name. Beaches abound in this gorgeous area, from Carmel-by-the-Sea to Pfeiffer Beach near Big Sur. To the east of Merced, Sequoia and King’s Canyon National Parks are just 100 miles away; Lake Tahoe is less than a four-hour drive; and Death Valley National Park can be reached in under six hours.
Learn more about surrounding national parks in our National Parks of the West Coast guide.
If you’ve decided that Merced is the right place for your family to move, now is the time to identify the best professional moving company to handle your relocation. United Van Lines can manage local and long-distance moves.
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While you’re online, get an inside look at the Golden State in our Moving Guide to California. Explore our city guides and state guides to popular destinations around the country if you’re still trying to narrow down your list of places to move.