If you are thinking of moving to California in the near future, it is a good idea to get an impression of how the state’s economy is faring. Like many other states throughout the country, California is walking a fine line with furloughed employees and unbalanced budgets. If you live in California now, you probably are well aware of the financial ailments.
Merced, located in the county seat of Merced County within the San Joaquin Valley and named after the nearby Merced River, is one of the poorest cities in California. In fact, Merced is one of the poorest major cities in the entire country. Part of the problem is the recent housing bubble bust and the mass loss of employment. The unemployment rate is at almost 19% in the city, which has a population of almost 80,000.
Though Merced was never one of the richest cities on the map, it had a steady economy and stable housing prices. But, back in 2008, those housing prices took a dip. The city’s property actually lost about 46% of its value. That drop was the second largest depreciation for any city in the country since 1980.
Experts believe that housing prices will drop even more in Merced – by up to 13.2% by the second quarter of 2012. While this news might be good for people hoping to move into a house on the cheap, it isn’t great for homeowners who are simply struggling to make ends meet. City officials are hoping that people will begin moving back to Merced to help revitalize the area.