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Thomas Winz/Getty Images July 26, 2022 Mia Taylor is a contributor to Bankrate and an award-winning journalist who has two decades of experience and worked as a staff reporter or contributor for some of the nation's leading newspapers and websites including The Atlanta Journal-Constitution, the San Diego Union-Tribune, TheStreet, MSN and Credit.com. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Bankrate logo The Bankrate promise
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. As one of the largest states in the country, it’s not easy to generalize about the cost of living in California. Though there are some facts that are very revealing when it comes to life here. To begin with, the Golden State is known for its abundance of natural beauty. It offers a good quality of life too, one that often includes an active, outdoor lifestyle and plenty of job opportunities to boot. Some of the , by those metrics, include Oakland, Sacramento and San Diego. However, California is also home to five of the , not to mention three of the top five . Housing, food, utilities, even transportation: All are pricier in California, according to .
What s the average cost of living in California
The in California varies significantly depending on where in the state you live. In pricey San Francisco, it runs 91 percent higher than the national average; in Sacramento it’s 22 percent higher; and in Bakersfield, it’s just 4 percent higher. In general, however, the cost of daily expenses in the Golden State is higher than in many other parts of the country. Housing costs
Finding a place to live in California is not for the faint of heart. Housing costs, whether you’re , tend to be significantly higher here than the rest of the country. , in particular, can really cost you. The median sale price for a home in the state was an eye-popping $898,980 as of May 2022, according to the . At that price — up 10% from May 2021 — owning a home is not a realistic prospect for most of the state’s residents. To put it in perspective, the annual income required to be able to at the state’s median price is now about $180,000. That’s . If you’re a , though, the state offers some assistance programs that may be able to help. Rent prices in California are equally challenging. The state has the fourth highest rent rates in the country and the average rent for a two-bedroom home is a steep $2,274 per month. Half of the renters in the state pay more than 30 percent of their income toward rent, according to data from the . Utility costs
Utility bills in California are no small expense. San Diego residents, for instance, who are served by San Diego Gas & Electric, pay the in the entire nation. Utility rate increases for San Diego residents are expected to outpace inflation by nearly 70 percent by the year 2030. In the state as a whole, monthly utility bills run about 29 percent higher than the national average. Grocery costs
Ironically for a state with so many farms, the cost of food in California is also more expensive than much of the rest of the country. State residents pay an average of 12 percent more for food than the national average. estimates that a single adult in the state spends about $4,000 annually on food. That cost increases to $5,893 annually for an adult with one child and $8,853 for an adult with two children. Transportation costs
Transportation is not an area where you stand to save much money when living in California. State residents spend about 37 percent more on transportation than the national average. Of course, California is known for its highways. It’s a place where many people, particularly those outside major cities, rely on driving rather than public transportation. And unfortunately, the cost of gas in the state is exceptionally high: for July 2022 puts the price of gas in California at $5.73 per gallon, compared to a national average price of $4.35. is also expensive. State drivers pay an average of $2,190 per year, compared to a nationwide average of $1,771. Taxes
Like so many of the other expenses that factor into the overall cost of living in California, taxes here are among the steepest in the country. The state . What’s more, local cities and counties can add their own sales tax on top of that amount, making it even more expensive in some parts of the state. For income tax, California follows a graduated tax system: The more money you make, the higher your rate. The tax brackets begin at 1 percent and range up to per year. If there is one silver lining, it is that the state’s property taxes are not quite as excessive. The effective , which is paid as a percentage of your home value. This puts California’s property taxes 34th in the nation in terms of costliness.
California s job market
California is home to the by far. In fact, itself, it would boast the world’s fifth-largest economy! California s job market is diverse and rich with opportunity. While the state may be best known for Hollywood and Silicon Valley, agriculture is actually the top industry. The next largest industries in the state, in order, are film and television, travel and tourism, and tech. The has been declining for the past year. As of April, it sat at 4.6 percent.
Ready to move to California
If you’re considering a move to California, it may be a good idea to spend some time exploring the state and its diverse offerings first. From the bustle of big cities like San Francisco and Los Angeles, to the natural beauty of beachside enclaves like Santa Barbara, to the desert elegance of Palm Springs, there is no shortage of lifestyle choices. Finding a knowledgeable and experienced to help you sort through the options is also a good idea, particularly in areas where the real estate market is highly competitive.
FAQs
Is it expensive to live in California
Yes — California is one of the priciest states in the country. The cost of living in the state overall is 39 percent higher than the national average, but that varies depending on the particular city. In San Francisco, for example, the cost of living is a whopping 91 percent higher than the national average.
What is the average home value in California
Buying a house here is expensive. According to the California Association of Realtors, the median price of a home in the state is a high $898,980, and rising — that number is up 9.9 percent from a year ago.
How much does it cost to live comfortably in California
While living comfortably is a relative term, the cost of living in California is steep. Housing costs in particular are significantly higher than in the rest of the country. In addition, utility expenses are 29 percent higher and food costs are 12 percent higher than national averages. As a result, according to MIT’s living-wage calculator, a single individual would need to earn at least $21.82 per hour to have what’s considered a living wage in the state. SHARE: Mia Taylor is a contributor to Bankrate and an award-winning journalist who has two decades of experience and worked as a staff reporter or contributor for some of the nation's leading newspapers and websites including The Atlanta Journal-Constitution, the San Diego Union-Tribune, TheStreet, MSN and Credit.com. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Related Articles