Home of the newest addition to the prestigious University of California system, Merced is an agricultural city quickly adapting to the knowledge economy. The university, which opened in 2005, powers the city’s #19 University ranking and #22 People ranking. The university, whose students are more than 50% Latino, is also a major engine of upward mobility in this city with a large foreign-born population, ranking #3. Agriculture is Merced County’s top sector, accounting for $3-billion of economic output each year, but the government, health and education sectors are also growing fast. Improved rail connections to the Bay Area and the rest of California via the state’s under construction high speed Rail line will provide new economic opportunities for the city in the coming years. Great weather (#12), and easy access to Yosemite National Park and other natural wonders provide plenty of recreational opportunities for residents.