Low Development Fees
Merced’s development fees are generally lower than most other California Central Valley competitors. For example, a 50,000-square-foot distribution warehouse will pay $82,782 in development fees in Merced, compared with $119,462 in Modesto and $220,922 in Livermore. Specific fees depend on building size, use, fixtures, and other variables. Developers in Merced may obtain a free fee estimate for their specific project from the City.

Reasonable Land Costs
A wide variety of commercial sites are available ranging from small parcels to over 50 acres in size, with land prices ranging from $5.00 per square foot to $12.00 per square foot. The City currently has no Mello Roos assessment districts and sports an excellent (Class 2) fire rating, bringing significantly lower insurance premiums for building owners.

Housing Costs Below the National Average
A wide variety of housing is available in Merced. Rentals for one or two-bedroom apartments and duplexes range from $350 to $700 per month. Two and three-bedroom houses rent for $550 to $900 per month. For those looking to buy, new homes range from the $85,000 starter home to the $300,000+ custom dream house. There is also an adequate stock of resale homes at reasonable prices. The median price of a home in Merced is currently $110,000 (compared with the national median home price of $133,100).