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Merced was one of the most affected areas by the Great Recession. House prices fell to 1998 at the close of 2009. Zillow said that this made housing more affordable than in many other California cities.
Castle Air Force Base and agribusiness have been the foundation of the economy for centuries. In the last twenty years, the area has seen a greater diversity of industries, including printing and fiberglass boat building.
Castle Air Force Base was closed in September 1995 after three years of gradual decline. Although this had an impact on residential reaal estate, some retail and service sectors were affected. However, overall retail sales continued to rise. The area is seeing an increase in industrial development. The Castle Airport Aviation and Development Center is the current name. It still houses the Castle Air Museum.