California is the #38 Most Expensive City in the U.S.
- Housing is 107% higher than the national average. The average home cost in California ranges from $800,000 to $850,000, which is more than double the national median of $1,100,739.82. If you're buying a new house in California, plan to put down 15–20% of the home price upfront as a down payment. Your monthly mortgage payments in California can reach $5,900 or higher, about twice the typical American monthly mortgage payment.
Renting in California is 85.48% higher than the national average. The average rent in California is $2,535.47 per month on average, significantly above the national average of $1,645. A one-bedroom home in San Francisco costs $3,500 monthly, while a one-bedroom home in Los Angeles averages $2,800. Despite the premium pricing, many rentals in the state offer limited space, and rarely include parking. - Utilities are 30% higher the national average. PG&E electricity bills have jumped 70% since 2020, averaging $345.63 monthly compared to $125 in 2020. California's renewable energy investments and wildfire mitigation costs drive rates to 44.8¢ per kWh—among America's highest. HOA fees range from $200 to $800 monthly, depending on location and amenities.
- Food prices in California are 13% higher than the US median. A gallon of milk costs $5.22, compared to $4.07 nationally, or $3.92 in Texas. If you're a family of four, expect to spend $1,400 to $1,800 monthly for groceries in California. Single adults might spend $450 to $650 monthly, based on your dietary preferences and shopping habits.
- Healthcare costs in California are 8.22% higher than the national average. A routine check-up costs $165, compared to $142 nationally, or $135 in neighboring Arizona. Emergency room visits without insurance can exceed $3,500. However, California's extensive healthcare network provides access to world-class medical facilities, like Stanford Medicine, UCLA Medical Center, and Cedars-Sinai.
- Miscellaneous expenses are 13.51% higher than the national average. This includes fitness memberships ($120 to $200 monthly), entertainment at theme parks like Disneyland ($100+ a day), and personal care services. Beach access remains free, but resort-style living comes at premium pricing.
Moving to California? Be ready to pay more. But hey, the sunshine and coastal views are free—just make sure your paycheck can handle everything else! 👉 Next Step: Compare single-family homes in California
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Browse Homes For Sale in CaliforniaIs Living in California Too Expensive?
With a budget of 1,100,739.82, you'll get a modest three-bedroom home in Palo Alto with no yard. The same amount buys a house with a backyard in Georgia or North Carolina. Moreover, California's premium extends beyond housing to utilities, transportation, and everyday services.
Housing in California
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Miscellaneous Costs in California
What Salary Do You Need to Live in California
- Homeowners spend $144,495 per annum: This includes mortgage payments, property taxes, insurance, utilities, groceries, and transportation. Homeowners in coastal or high-demand areas pay even more due to high real estate values and maintenance costs.
- Renters spend $78,293per annum: Monthly rent often exceeds $2,535.47 in cities like Los Angeles and San Francisco. Add in utilities, internet, food, and commuting, and renters face steep annual expenses, especially in urban neighborhoods.
- Families with kids spend $12,188 per annum: Childcare, school costs, and larger housing needs push annual spending significantly higher. Families in top school districts or opting for private education face greater financial demands.
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