These California cities have the cheapest homes

If you're looking to purchase a new home in California but you're on a budget, you may want to consider a few cities where you can find homes for significantly cheaper than their more expensive counterparts.

A new study from Go Banking Rates revealed the top five cheapest places to buy a home in the Golden State all have an average home value of less than $350,000. Compare that to the $1.1 million average home price in Los Angeles, according to data from Realtor.com. 

These are the top five cities with the cheapest home prices: 

  • Oildale (Kern County): $248,001
  • Porterville (Tulare County): $278,057
  • Delano (Kern County): $278,057
  • Tulare (Tulare County): $310,699
  • Calexico (Imperial County): $315,277

To get these results, analysts reviewed data from Zillow and the U.S. Census Bureau to find out which cities had the state's cheapest homes nationwide. 

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One common factor in California to note is that the cities with the cheapest home prices contain less than 70,000 residents.  

But if you still want to move to a major metro in California, perhaps head to the Bay Area, where a good chunk of homes sold below asking price in January, according to a recent study from Redfin.

Last week, the state launched a new initiative called the California Dream For All Shared Appreciation loan program. Made possible by the California Housing Finance Agency, the program gives eligible individuals 20% of the home's cost to help with the down payment. When the homeowner sells the house, the state will get a portion back (15% or 20% of any appreciation of the home depending on your income) and, in turn, uses that money to help out the next first-time homebuyer.