Retirees Are Discovering Modesto as a Surprisingly Affordable Way to Live the California Lifestyle

As you think about and plan for retirement, you might be daydreaming about relocating to a different region. There are many lists of the best places to live and the best places to retire, and even we at The Motley Fool have such a list. For example, we have a report on the Best Places to Retire – and, more specifically, on “The Best Places to Retire in the West in 2026, Ranked by What Retirees Value Most.”

One location in the report with some solid scores is Stanislaus County in California. And its county seat, Modesto, is well worth a look if you’re considering moving to California for retirement.

Image source: Getty Images.

Meet Modesto

You might have been thinking about moving to San Jose or San Diego instead, but according to the Forbes cost-of-living calculator, the cost of living is 70% lower in Modesto than in San Jose and 36% lower than in San Diego. Those are big differences, and they can be the difference between a comfortable or a stressed-out retirement.

When the folks at RetirementLiving.com ranked the best places to retire in California, the town of Roseville came out on top, but Modesto, placing sixth, was tops for affordability.

Here are some things to know about Modesto:

• Modesto is located roughly in the middle of California, in the Central Valley, which is an agricultural hub. (That means there’s plenty of very fresh produce available.)
• Its population was estimated at 220,592 as of mid-2024. (About 14.4% of those folks were 65 or older.)
• Its median home sale price of $457,500 is well below the median U.S. home sale price of $813,110 for California.
• The median rent price was recently $1,645.
• The sales tax is a meaningful 8.88% (including state, county, and local taxes).
• The poverty rate was recently 12%, suggesting that many people still don’t find it that affordable.

Modesto offers plenty of recreational opportunities, too, such as river rafting, hiking, kayaking, and biking.

Should you retire to Modesto?

There’s no clear answer. Plenty of other towns might offer you a little more of what you want most, whether that’s cultural activities, outdoor recreation, top-flight medical facilities, a pleasant climate, low taxes, etc. But if you’re aiming to keep your costs down a lot, consider Modesto – and research it much more.

Note, too, that it’s probably best not to up and move to any new location without trying to live there first. Perhaps rent an apartment for three months to even a year, and see how comfortable you are there.

Don’t assume that your loved ones will visit frequently, because they may not – everyone seems to be very busy these days. And think about how you’ll spend your time. For many people, the best cost-cutting solution instead of relocating for retirement to a new city or state is simply to stay in their current region, but downsize to a smaller home.