Why Is Murrieta So Cheap? Analyzing the Key Factors

Murrieta, California, is known in Southern California for its relative affordability, attracting individuals and families seeking an accessible lifestyle. This stands out in a region known for its high cost of living. The city’s growth and development are shaped by its housing market, local economy, cost of daily necessities, and geographic positioning. These elements explain why Murrieta offers a more budget-friendly option compared to neighboring metropolitan areas.

Housing Market Characteristics

Murrieta’s housing market significantly contributes to its affordability, especially compared to more expensive coastal regions. The median listing home price in Murrieta was $714,000 in July 2025, with a median sold price of $693,500. This is less expensive than the average California home, which typically costs around $733,500. For example, a median three-bedroom house in Murrieta costs about $650,000, a substantial difference from areas like Orange, where a similar home might be $950,000.

The housing stock predominantly consists of single-family detached homes, making up nearly 74% of the city’s units. Almost 50% of these homes are newer, built since 2000. The market is somewhat competitive, with homes receiving an average of two offers, though median days on market can fluctuate. This indicates a balanced supply and demand. This balance, along with newer, master-planned communities, helps maintain lower housing costs by providing consistent inventory.

Local Economic Influences

Murrieta’s economic landscape contributes to its affordability, differing from higher-wage economies in some Southern California hubs. The city’s economy employs about 49,500 people, with major industries including Health Care & Social Assistance, Retail Trade, and Educational Services. These sectors provide a stable employment base. The highest-paying industries locally are Utilities, Public Administration, and Professional, Scientific, & Technical Services.

Murrieta’s median household income was $113,925, which is notably higher than the U.S. median. This income level is also about 25% higher than the Riverside-San Bernardino-Ontario Metro Area and 10% higher than the California average. Despite these higher local incomes, many residents commute to larger employment centers outside the city. This commuting trend can influence local wage structures and the types of businesses that thrive within the city.

General Cost of Living

Beyond housing, other elements of Murrieta’s cost of living contribute to its affordability. The total cost of necessities like food, transportation, healthcare, and utilities is 31.2% higher than the U.S. average, but 12.5% less expensive than the California average. Utility costs, encompassing electricity, water, gas, sewer, and garbage services, generally align with the U.S. national average.

Transportation expenses are a notable component, as Murrieta is largely a commuter city relying on personal vehicles. This reliance translates to fuel expenditures. Property taxes in Murrieta, collected by Riverside County, are based on a home’s assessed value and typically range between 1.1% and 2% of the purchase price. While these rates are higher than the national median, they are reasonable within California’s property tax structure.

Geographic and Growth Considerations

Murrieta’s geographic placement and historical development patterns significantly influence its cost structure. Located in southwestern Riverside County, the city is approximately 60 miles from downtown San Diego and is situated within the broader Los Angeles-San Diego mega-region. This distance from major coastal employment centers contributes to lower property values and costs compared to closer economic hubs. Proximity to major interstate highways enhances the city’s accessibility.

Historically, Murrieta began as a small agricultural town, experiencing a significant population boom from the 1960s through the 1990s. This growth was driven by individuals and families seeking affordable housing away from denser, more expensive metropolitan areas. Undeveloped land allowed for widespread new residential construction, particularly single-family homes, accommodating new residents without extreme price increases. Murrieta’s rapid expansion solidified its character as a largely residential “bedroom community.”