Morro Bay is a somewhat small coastal city (i.e. on the ocean, a bay, or inlet) located in the state of California. With a population of 10,696 people and four associated neighborhoods, Morro Bay is the 410th largest community in California.

Housing costs in Morro Bay are among some of the highest in the nation, although real estate prices here don't compare to real estate prices in the most expensive communities in California.

Telecommuters are a relatively large percentage of the workforce: 14.07% of people work from home. While this number may seem small overall, as a fraction of the total workforce it is high relative to the nation. These workers are often telecommuters who work in knowledge-based, white-collar professions. For example, Silicon Valley has large numbers of people who telecommute. Other at-home workers may be self-employed people who operate small businesses out of their homes.

Morro Bay is also nautical, which means that parts of it are somewhat historic and touch the ocean or tidal bodies of water, such as inlets and bays. Such areas are often places that visitors and locals go for waterfront activities or taking in the scenery.

The education level of Morro Bay ranks among the highest in the nation. Of the 25-and-older adult population in Morro Bay, 43.25% have at least a bachelor's degree. The typical US community has just 21.84% of its adults holding a bachelor's degree or graduate degree.

The per capita income in Morro Bay in 2022 was $50,928, which is upper middle income relative to California, and wealthy relative to the rest of the US. This equates to an annual income of $203,712 for a family of four. However, Morro Bay contains both very wealthy and poor people as well.

Morro Bay is a very ethnically-diverse city. The people who call Morro Bay home describe themselves as belonging to a variety of racial and ethnic groups. The greatest number of Morro Bay residents report their race to be White, followed by Asian. Morro Bay also has a sizeable Hispanic population (people of Hispanic origin can be of any race). People of Hispanic or Latino origin account for 14.05% of the city’s residents. Important ancestries of people in Morro Bay include English, German, Irish, Italian, and Scottish.

The most common language spoken in Morro Bay is English. Other important languages spoken here include Spanish and Portuguese.