If you're thinking about investing in real estate in Merced, CA, you're not alone. This growing California city, often called the “Gateway to Yosemite,” is attracting more interest than ever from investors, landlords, and people looking to move into nice areas. With a population of over 86,000 and a prime location near UC Merced, the Merced area is showing promising trends for the housing market in 2025.
Let’s take a closer look at some of the most attractive neighborhoods in Merced this year and what makes them stand out.
Neighborhoods Worth Watching
Ragsdale tops the listings for many investors looking for a neighborhood with great community vibes, mature trees, and walkability. It’s one of those places that feels established yet welcoming. Families enjoy its proximity to schools, parks, and local shops, making it ideal for long-term tenants.
Beachwood, on the other hand, is a peaceful, family-friendly neighborhood with easy access to the freeway. While it may not be as busy as other parts of Merced, that’s exactly why many families stay. It offers a quiet escape with just the right mix of amenities.
McNamara is another neighborhood we’ve been keeping track of. It's diverse and quiet, and offers a good price-to-square-foot ratio for those looking to expand their property portfolio. Its location also makes it ideal for tenants who want to be close to local shops and commuting routes.
West and Central North Merced are also considered nice areas, especially for investors eyeing younger renters. Being closer to UC Merced makes them hot spots for students and university members, and with that comes consistent rental income.
What Makes Merced a Smart Investment
Aside from neighborhood charm, the Merced housing market has seen notable changes over the last year. The median sale price is relatively low compared to other parts of California, making this area more competitive for first-time and experienced investors. Data from February shows that many homes are pending within weeks of hitting the market—a strong indicator of demand.
Merced’s education options are another plus. In addition to the university, the city offers well-rated school districts, which attract families looking to rent longer-term. Combine that with the average salary of around $59,233 and a growing job market in healthcare, education, and manufacturing, and you’ve got a tenant pool that’s stable and reliable.
Of course, there are challenges. While Merced has some nice neighborhoods, it’s important to reference local crime rate data before making a purchase. Summers can get hot, and winters have moderate rainfall, so keeping property maintenance up to date is key to protecting your investment.
But here's the thing: the weather also means there are many days to enjoy parks, fishing spots, and day trips to Yosemite. The closest airport is also a short drive away, adding convenience for commuters and travelers alike.
Ready to Invest in Merced?
If you're curious about how to get started or want to explore available listings, our team at Rental Zebra is here to help. We provide full-service property management that takes the stress out of owning rental homes. Whether you're looking to sell, buy, or stay informed about the local market, we’re ready to guide you every step of the way.
Want to Learn More About the Area?
Take a moment to browse our Services or Contact Us today. We’re here to answer your questions, help you compare price trends, and give you the details you need to make informed investment decisions in Merced, CA.
Let’s spend some time talking about how we can make your next investment a success.
