California Military Retirement: Best Cities, Housing Costs & Quality of Life
Where to retire in California as a veteran: best cities ranked by benefits, housing costs, veteran population, and quality of life for 2025.
California Military Retirement: Best Cities, Housing Costs & Quality of Life
California has more veterans than any other state - 1.6-1.8 million - yet it consistently ranks near the bottom for veteran affordability and livability. The paradox is real: world-class VA healthcare, excellent education benefits, and massive military community, all wrapped in the nation's most expensive housing market.
So where should you actually live if you're retiring in California? This isn't a generic "best places to live" list. This is a hard look at which California cities make financial and practical sense for veterans, and which ones will drain your retirement faster than you can say "property tax."
Bottom Line Up Front
Most affordable for veterans: Bakersfield, Fresno, Riverside Best military community: San Diego, Oceanside, Riverside Best VA healthcare access: Los Angeles, San Diego, San Francisco Best job opportunities: San Diego, Los Angeles, Sacramento Best overall value: Sacramento, Riverside, Fresno
Reality check: Even California's "affordable" cities cost 20-40% more than the national average. There's no cheap California. There's just "less catastrophically expensive" California.
Median home price range: $375,000 (Bakersfield) to $1,300,000+ (San Francisco Bay Area) State median: $683,996
The California Veteran Housing Crisis
Before we rank cities, let's acknowledge the elephant in the room: California has 1 in 3 homeless veterans in America. That's roughly 10,900 veterans on the streets on any given night in a state that spends billions on veteran programs.
The primary culprit? Housing costs that have completely disconnected from income reality.
The math that doesn't work:
- E-8 military retiree (20 years): ~$36,000/year retirement pay
- 100% VA disability: ~$47,300/year with dependents
- Combined income: ~$83,300/year
- Median California home: $683,996
- Income needed to afford median home: ~$200,000+
Even with dual incomes and VA disability, many veterans can't afford California's housing market without significant additional income.
Top 10 Best Cities for Veterans in California
1. San Diego - "America's Finest City"
Overall Grade: B+
Why it ranks #1: Largest veteran population and military presence in California, excellent VA healthcare, strong job market, near-perfect weather.
Veteran Population
- San Diego County veterans: 235,000+ (highest in state)
- Concentration: Roughly 12% of adult population
- Military bases: Camp Pendleton, MCRD San Diego, Naval Base San Diego, Naval Air Station North Island, Naval Base Coronado
San Diego has the most military-friendly culture in California. Businesses offer military discounts, the community honors veterans, and you're never far from someone who speaks your language.
Housing Market
- Median home price: $935,000 (September 2025)
- Year-over-year: Down 0.8% (slight relief)
- Luxury market: $1,399,000+ for single-family
- Property tax with 100% exemption: $6,732 → $4,839 (saves ~$1,893/year with low-income exemption)
- Property tax rate: ~0.72% effective
Cost of Living
- Overall index: 143 (43% above national average)
- Housing: 177% above national average
- Utilities: 15% above national average
- Groceries: 13% above national average
- Transportation: 18% above national average
Employment Opportunities
Defense contractors:
- General Dynamics NASSCO (shipbuilding)
- SAIC (IT, cybersecurity)
- General Atomics (drones, nuclear tech)
- Northrop Grumman (cyber, space)
- Raytheon Technologies
- BAE Systems
Other major employers:
- Qualcomm (wireless technology)
- UC San Diego
- Sharp HealthCare
- Scripps Health
- Kaiser Permanente
- Biotech industry (Illumina, Takeda, etc.)
Average salaries:
- Defense contractor program manager: $110,000-$150,000
- Systems engineer: $95,000-$135,000
- Skilled trades (welding, pipefitting): $65,000-$95,000
Clearance jobs: Abundant - many positions require Secret/Top Secret
VA Healthcare Access
- San Diego VA Medical Center: 3350 La Jolla Village Drive, San Diego, CA 92161
- Phone: (858) 552-8585
- Services: Full-service hospital, emergency department, specialty care
- Community clinics: 6 locations (Chula Vista, Escondido, Imperial Valley, Kearny Mesa, Oceanside, Mission Valley)
Healthcare rating: Above average nationally, excellent specialty care
Quality of Life
- Climate: Arguably best in America (65-75°F year-round, minimal rain, ocean breeze)
- Outdoor recreation: 70 miles of beaches, hiking, sailing, fishing, Torrey Pines, Balboa Park
- Culture: USS Midway Museum, numerous military memorials, diverse food scene, craft breweries
- Education: Excellent schools in North County (Poway, Del Mar, Carmel Valley)
- Traffic: Bad, but not LA bad
- Crime: Moderate, low in North County suburbs
Military Community Strength
- Veterans Day: Major parades and ceremonies
- Veterans organizations: 50+ VFW/American Legion posts
- Military discounts: Ubiquitous
- Veteran unemployment: Lower than state average due to defense contractors
Pros:
- Largest veteran community in California
- Best weather in America
- Excellent VA healthcare
- Strong defense contractor job market
- Military culture embedded in city
- Beach lifestyle
Cons:
- Housing costs are brutal ($935K median)
- Traffic congestion increasing
- High cost of living across all categories
- Difficult to afford on military retirement alone
- Property taxes still high even with exemption
Bottom line: San Diego is California's most veteran-friendly city, but only if you can afford it. If you have civilian job prospects in defense/tech and can manage the housing costs, it's unbeatable. If you're on fixed income only, you'll struggle.
2. Riverside - "Inland Empire"
Overall Grade: B+
Why it ranks #2: Dramatically cheaper than coastal California, growing veteran community, proximity to both LA and San Diego, improving job market.
Veteran Population
- Riverside County veterans: 165,000+
- Military connection: March Air Reserve Base, close proximity to Camp Pendleton (1 hour)
Housing Market
- Median home price: $625,000 (August 2025)
- Year-over-year: Down 1.6% (buyers' market emerging)
- Property tax: ~$6,250/year without exemption, ~$3,621 with low-income exemption
- Property tax rate: ~1.0% effective
- Annual savings with exemption: ~$2,629
Cost of Living
- Overall index: 125 (25% above national average, but 18% below coastal CA)
- Housing: 11% less expensive than average California city
- Groceries: Near national average
- Utilities: Slightly above national average
Employment Opportunities
Major employers:
- Amazon (massive distribution centers)
- March Air Reserve Base (civilian jobs)
- Riverside County government
- Kaiser Permanente
- Loma Linda University Medical Center
- Logistics/warehousing (UPS, FedEx, Target distribution)
Emerging industries:
- E-commerce logistics
- Healthcare
- Manufacturing
Average salaries: 15-25% lower than coastal California, but housing costs are 30-40% lower
Job market reality: Fewer defense contractors than San Diego, but growing logistics sector actively recruits veterans for supervisory roles.
VA Healthcare Access
- Loma Linda VA Healthcare System: 11201 Benton Street, Loma Linda, CA 92357
- Phone: (909) 825-7084
- Community clinics: Palm Desert, San Bernardino, Victor Valley
- Note: Full VA medical center in Loma Linda, about 20-30 minutes from Riverside proper
Quality of Life
- Climate: Hot summers (90-105°F), mild winters, low humidity
- Outdoor recreation: Mount Rubidoux, hiking, lakes (Perris, Elsinore), desert access
- Culture: Downtown Riverside revitalization, Mission Inn, festivals
- Education: UC Riverside, growing school districts
- Traffic: Increasing as bedroom community for LA/OC
- Crime: Higher in some areas, research specific neighborhoods
Housing Options
- Corona: Newer developments, family-friendly, $650K-$750K
- Murrieta/Temecula: Wine country, good schools, $600K-$700K
- Riverside proper: Older neighborhoods, $500K-$650K
- Perris/Hemet: Budget options, $350K-$500K
Pros:
- Much more affordable than coastal California
- Growing job market in logistics/healthcare
- VA medical center access (Loma Linda)
- 1 hour to mountains, 1 hour to beach, 1 hour to desert
- Large veteran community
- Property tax exemption provides real savings
Cons:
- Brutal summer heat (100°F+ common)
- Air quality issues (smog trapped by mountains)
- Fewer defense contractor jobs than San Diego/LA
- Public transit virtually non-existent
- Some high-crime neighborhoods
Bottom line: Riverside offers the best value proposition for veterans in Southern California. You get reasonable housing costs, VA access, and proximity to major metros without paying coastal prices.
3. Sacramento - "The Capital City"
Overall Grade: B+
Why it ranks #3: State capital with veteran hiring preference, VA medical center, moderate housing costs (for California), four seasons.
Veteran Population
- Sacramento County veterans: 75,000+
- Regional veteran population: 150,000+ in greater metro
- Military bases: McClellan Air Force Base (closed but civilian jobs remain), Travis AFB nearby
Housing Market
- Median home price: $550,000 (rising 3% in 2025, 4% projected 2026)
- Property tax: ~$4,235/year without exemption, ~$2,210 with low-income exemption
- Property tax rate: ~0.77% effective
- Annual savings with exemption: ~$2,025
- Inventory: Better than coastal California
Cost of Living
- Overall index: 121 (21% above national average)
- Housing: Still expensive but 40% cheaper than San Francisco, 35% cheaper than San Diego
- Utilities: Near national average
- Groceries: Slightly above national average
Employment Opportunities
State government (biggest advantage):
- 250,000+ state employees in Sacramento metro
- Veterans' preference on civil service exams
- Competitive pay with excellent benefits
- CalPERS pension system
Major state employers hiring veterans:
- CalTrans (transportation)
- California Highway Patrol
- Department of Corrections
- Franchise Tax Board
- Parks and Recreation
- Various state agencies
Other major employers:
- UC Davis Health
- Kaiser Permanente
- Sutter Health
- Intel
- Raley's
- VSP Vision Care
Average salaries:
- State government (entry): $45,000-$65,000
- State government (experienced): $70,000-$95,000
- Private sector comparable to state
Veterans' hiring advantage: State hiring preference can be the difference between getting an interview and not. Use it.
VA Healthcare Access
- VA Northern California Healthcare System: 10535 Hospital Way, Mather, CA 95655
- Phone: (916) 843-7000
- Services: Full medical center with comprehensive care
- Additional facility: Martinez (30 miles)
Quality of Life
- Climate: Four seasons - hot summers (95°F+), mild winters (40-50°F), occasional rain
- Outdoor recreation: American River Parkway (32-mile bike trail), Lake Tahoe (2 hours), wine country (nearby)
- Culture: State Capitol, museums, farm-to-fork food scene, diverse
- Sports: Sacramento Kings (NBA), Sacramento Republic FC (soccer)
- Education: Sacramento State, UC Davis (20 minutes)
- Traffic: Moderate, not LA/SF level
- Crime: Higher in some areas, suburbs safer
Neighborhoods for Veterans
- Elk Grove: Family-friendly, newer, good schools, $550K-$650K
- Folsom: Upscale, excellent schools, tech jobs, $650K-$800K
- Roseville: Suburban, family-oriented, $600K-$700K
- Natomas: Affordable, near airport, $450K-$550K
- Davis: College town, bike-friendly, expensive ($650K+)
Pros:
- State hiring preference provides real advantage
- VA medical center access
- More affordable than coastal California
- Four seasons (if you like variety)
- Central location (3 hours to San Francisco, Tahoe, Napa)
- Growing city with job diversity
Cons:
- Summer heat (95-105°F)
- Limited defense contractor presence
- Not as strong military culture as San Diego
- Housing costs still rising
- Air quality issues in summer
Bottom line: Sacramento is ideal for veterans who want state government jobs, moderate housing costs (for California), and don't need to live on the coast. The veterans' preference in state hiring is a genuine advantage worth thousands in lifetime earnings.
4. Fresno - "Central Valley Hub"
Overall Grade: B
Why it ranks #4: Most affordable major California metro, VA medical center, agricultural/logistics economy.
Housing Market
- Median home price: $387,500
- Property tax: ~$2,900/year without exemption, ~$1,900 with basic exemption
- Most affordable major California city
Cost of Living
- Overall index: 107 (7% above national average)
- Housing: 21% cheaper than California average
- Overall: 33% cheaper than coastal California
Employment
- Major employers: Agriculture, logistics, healthcare, education
- VA Medical Center: Employers 1,000+
- Salaries: Lower than coastal CA, but housing costs 50% less
VA Healthcare
- VA Central California: 2615 East Clinton Avenue, Fresno, CA 93703
- Phone: (559) 225-6100
Pros:
- Most affordable California city
- VA medical center
- Central location (Yosemite 1.5 hours, coast 2 hours)
- Strong agricultural economy
Cons:
- Summer heat (100°F+ regularly)
- Worst air quality in nation (agricultural dust + smog)
- Higher crime than state average
- Limited defense contractor jobs
- Weak military culture
Bottom line: Fresno makes sense if affordability is your top priority and you can tolerate heat and air quality issues.
5. Bakersfield - "Country Music Capital of the West Coast"
Overall Grade: B-
Why it ranks #5: Cheapest major California city, oil/agriculture jobs, country music culture.
Housing Market
- Median home price: $375,000 (cheapest in California)
- Cost of living: 99.8 (essentially national average)
- 33% cheaper than California average
Employment
- Oil/gas, agriculture, logistics
- Lower wages but dramatically lower housing costs
Pros:
- Only California city at national average cost of living
- Oil/ag jobs for skilled workers
- Country music culture
Cons:
- Extreme summer heat (105°F+)
- Air quality among worst in nation
- No VA medical center (must travel to Fresno or LA)
- High crime in some areas
- Limited veteran community
Bottom line: Bakersfield is for veterans who absolutely must be in California but can't afford anywhere else. You trade everything California is known for (coast, culture, climate) for affordability.
6. Oceanside - "Beach City for Veterans"
Overall Grade: B
Why it ranks #6: Marine Corps town, beach lifestyle, 15 minutes from Camp Pendleton.
Housing Market
- Median home price: $850,000+
- Property tax: High but exemption helps
Military Community
- Literally next to Camp Pendleton
- Massive Marine Corps veteran population
- Military culture everywhere
Employment
- Camp Pendleton civilian jobs
- Tourism/hospitality
- Retail
- Commute to San Diego (30-45 minutes)
Pros:
- Best beach town for veterans in California
- Incredible Marine Corps community
- Surfing, fishing, beach culture
- Less expensive than central San Diego
- VA clinic access
Cons:
- Still very expensive ($850K median)
- Limited jobs outside tourism/Camp Pendleton
- PCH traffic nightmarish
- Smaller city (fewer amenities than San Diego proper)
Bottom line: Oceanside is for Marines who want to stay close to Pendleton and can afford $850K+ homes. If you fit that profile, you'll love it.
7. Los Angeles County Areas
Overall Grade: C+
LA County veteran population: 310,000+ (largest in state)
Housing costs: $850,000+ median
Pros: Massive job market, multiple VA facilities, endless entertainment, diverse culture
Cons: Traffic is hellish, housing catastrophically expensive, air quality poor, high crime in many areas
Best LA areas for veterans:
- Long Beach: Near VA medical center, port jobs, $850K median
- Torrance/South Bay: Beach access, aerospace jobs, $1,100,000+ median
- Inland Empire (San Bernardino/Riverside): Affordable-ish, $600K-$700K
Bottom line: LA has jobs and VA facilities, but unless you're making $150,000+ household income, you'll struggle with housing costs.
8. San Francisco Bay Area
Overall Grade: D+
Veteran population: Significant (100,000+ across region)
Housing costs: $1,300,000+ median (most expensive in America)
Pros: World-class VA Palo Alto, tech jobs pay $150,000+, incredible food/culture
Cons: Literally most expensive housing market in America, traffic terrible, high crime in SF proper, cost of living unsustainable on military retirement alone
Bottom line: Only makes sense if you land a $200,000+ tech job. Otherwise, avoid unless you inherited property.
9. San Jose
Overall Grade: C
Housing: $1,100,000+ median
Jobs: Tech (Apple, Google, etc.)
Similar profile to SF: Great if you're in tech making huge salary, impossible otherwise.
10. Orange County
Overall Grade: C+
Housing: $1,100,000+ median
Pros: Excellent schools, safe suburbs, beach access
Cons: Among most expensive in state, property taxes high despite exemptions
Housing Cost Comparison Table
| City | Median Home Price | Property Tax (no exemption) | With Low-Income Exemption | Annual Savings |
|---|---|---|---|---|
| San Francisco | $1,300,000+ | $9,100+ | $7,200+ | $1,900+ |
| San Jose | $1,100,000 | $7,700 | $5,800 | $1,900 |
| Orange County | $1,100,000 | $9,020 | $7,163 | $1,857 |
| San Diego | $935,000 | $6,732 | $4,839 | $1,893 |
| Los Angeles | $850,000 | $6,970 | $4,814 | $2,156 |
| Oceanside | $850,000+ | $6,120+ | $4,227+ | $1,893+ |
| Riverside | $625,000 | $6,250 | $3,621 | $2,629 |
| Sacramento | $550,000 | $4,235 | $2,210 | $2,025 |
| Fresno | $387,500 | $2,900 | $1,900 | $1,000 |
| Bakersfield | $375,000 | $2,813 | $1,875 | $938 |
Key insight: Property tax exemption saves more in absolute dollars in expensive cities, but represents larger percentage savings in cheaper cities.
Cost of Living Breakdown
San Diego (Index: 143)
- Housing: 177
- Groceries: 113
- Healthcare: 115
- Utilities: 115
- Transportation: 118
Riverside (Index: 125)
- Housing: 150
- Groceries: 107
- Healthcare: 105
- Utilities: 108
- Transportation: 112
Sacramento (Index: 121)
- Housing: 145
- Groceries: 108
- Healthcare: 103
- Utilities: 100
- Transportation: 110
Fresno (Index: 107)
- Housing: 110
- Groceries: 105
- Healthcare: 95
- Utilities: 105
- Transportation: 105
Bakersfield (Index: 99.8)
- Housing: 103
- Groceries: 102
- Healthcare: 90
- Utilities: 95
- Transportation: 100
National average: 100
Climate Considerations
Coastal California (San Diego, LA, SF, Oceanside)
- Summers: 70-85°F, marine layer (cool mornings)
- Winters: 50-65°F, occasional rain
- Best for: Veterans with respiratory issues, heat sensitivity
- Challenge: Marine layer/fog can be depressing
Inland Valleys (Sacramento, Fresno, Bakersfield, Riverside)
- Summers: 95-110°F, dry heat
- Winters: 40-60°F
- Best for: Veterans who like heat, four seasons
- Challenge: Extreme summer heat, air quality issues
Veteran Health Considerations
Heat: Inland valleys can exacerbate cardiovascular conditions, heat-related injuries
Air quality: Central Valley (Fresno, Bakersfield) has worst air quality in nation - serious concern for respiratory conditions, asthma, COPD
Coastal climate: Generally healthiest for most conditions - mild temperatures, ocean air
Where Veterans Actually Live (Top Counties)
- Los Angeles County: 310,000+ veterans
- San Diego County: 235,000+ veterans (highest concentration)
- Riverside County: 165,000+ veterans
- Orange County: 120,000+ veterans
- San Bernardino County: 110,000+ veterans
- Sacramento County: 75,000+ veterans
- Alameda County (Oakland): 70,000+ veterans
- Santa Clara County (San Jose): 65,000+ veterans
- Contra Costa County: 60,000+ veterans
- Fresno County: 50,000+ veterans
Decision Matrix: Which City is Right for You?
Choose San Diego if:
- You want the strongest military community in California
- You're a Marine (especially Camp Pendleton connection)
- You have defense contractor job lined up
- You can afford $900K+ homes or have dual high incomes
- Weather is top priority
- You value VA healthcare access
Choose Riverside if:
- You want Southern California at 30-40% discount
- You can tolerate summer heat
- You work in logistics/warehousing/healthcare
- You want to be between LA and San Diego
- Affordability is important but not absolute priority
Choose Sacramento if:
- You want state government job with veterans' preference
- You like four seasons
- You want central California location
- You can afford moderate prices ($550K)
- You don't need beach access
Choose Fresno if:
- Affordability is your #1 absolute priority
- You can handle extreme heat and poor air quality
- You want VA medical center access
- You don't need military community
- You work in agriculture/logistics
Choose Bakersfield if:
- You absolutely must be in California but can't afford anywhere else
- You work in oil/gas industry
- You like country music culture
- You'll accept anything to escape higher costs
Choose Oceanside if:
- You're a Marine who can't leave Camp Pendleton area
- You want beach town + military culture
- You can afford $850K+ homes
- Commuting to San Diego for work is acceptable
Avoid Bay Area unless:
- You have tech job paying $200,000+
- You inherited property
- Money is no object
The Harsh Reality: Can You Actually Afford California?
Let's run real numbers for typical veteran scenarios.
Scenario 1: E-7 Retiree, 100% Disabled, Single
Income:
- Military retirement: $32,000/year
- VA disability (100%): $3,946/month = $47,352/year
- Total: $79,352/year
Can afford (using 28% housing cost ratio):
- Maximum housing payment: $1,850/month
- Affordable home price: ~$350,000 (with VA loan, zero down)
California cities you can afford:
- Bakersfield ($375K) - barely
- Fresno ($387K) - barely
- That's it.
Reality: Even combining military retirement and 100% disability, you can only afford California's two cheapest cities, and barely.
Scenario 2: O-4 Retiree, 70% Disabled, Married, Dual Income
Income:
- Military retirement: $50,000/year
- VA disability (70% with dependents): $2,000/month = $24,000/year
- Spouse income: $60,000/year
- Total: $134,000/year
Can afford:
- Maximum housing payment: $3,127/month
- Affordable home price: ~$600,000
California cities you can afford:
- Riverside ($625K) - with stretch
- Sacramento ($550K) - comfortably
- Fresno ($387K) - well below budget
- Bakersfield ($375K) - well below budget
Reality: With dual income and officer retirement, you can afford Inland Empire/Sacramento, but coastal California is still out of reach.
Scenario 3: E-8 Retiree, 100% Disabled, Defense Contractor Job
Income:
- Military retirement: $36,000/year
- VA disability (100% with dependents): $47,300/year
- Defense contractor salary: $110,000/year
- Total: $193,300/year
Can afford:
- Maximum housing payment: $4,510/month
- Affordable home price: ~$850,000
California cities you can afford:
- San Diego ($935K) - with stretch
- Riverside ($625K) - comfortably
- Sacramento ($550K) - comfortably
- All cheaper cities - well within budget
Reality: This is the income level needed to afford coastal California. You need military retirement + VA disability + six-figure civilian job.
Key Takeaways
-
San Diego offers the best veteran community but requires significant income beyond military retirement to afford
-
Riverside provides the best value in Southern California - military community, VA access, reasonable costs
-
Sacramento works for state employment - veterans' preference makes a real difference
-
Fresno/Bakersfield are the only "affordable" options - but you sacrifice military culture, coastal access, and air quality
-
100% disabled veterans save $1,000-$2,600/year on property taxes depending on location - significant but not enough to offset high costs
-
You need $150,000+ household income to comfortably afford coastal California
-
Dual income is almost mandatory unless you're in Fresno/Bakersfield
-
Defense contractor job changes everything - six-figure salaries make San Diego/LA affordable
The bottom line: California can work for veterans, but it requires either:
- Willingness to live inland (Riverside, Sacramento, Fresno)
- Dual income with combined $130,000+
- Six-figure civilian job
- Acceptance that you'll pay 40-100% more than Texas/Florida/Arizona
California's veteran benefits help, but they don't overcome the fundamental affordability crisis. Choose with your eyes open.
Resources
- Housing market data: Zillow.com/CA, Redfin.com
- Cost of living calculators: BestPlaces.net
- VA facility locator: VA.gov/find-locations
- CalVet: (800) 952-5626 | calvet.ca.gov
- County veteran service offices: calvet.ca.gov/VetServices
Information current as of January 2025. Housing prices change rapidly - verify current market conditions before making decisions. This analysis is based on median prices and typical veteran income scenarios.