Cost Of Living In California


Cost Of Living In California

California city is a great place for ex-pats, students and families to move. It has many job opportunities, cultures and traditions. In short, it is economically the most prosperous state. You may want to factor in the cost of living when considering a move to California. To determine whether or not it is affordable for you, compare your current housing and food costs with those in Nigeria or foreign states which have more than 34% higher cost of living than the average city in the nation. The cities in California differ greatly with some places cheaper, while others are more expensive than the national average.


California is more expensive than average, with goods and services costing 15.4% more on average. It has the 3rd highest overall cost of living out of all U.S. states. In general, living in dense urban areas is more expensive than living in rural areas. California has 26 metropolitan areas. The most expensive is the San Francisco-Oakland-Hayward metro area, where the cost of goods and services is 31.6% higher than average and 16.2% higher than the statewide average.


So, how much should someone budget in California to live well? We will now be rounding numbers to the nearest dollar. Note that there may be slight discrepancies in total calculations, but these are close estimations at best. Let’s do the breakdown.


Cost of Shelter in California (Cost Of Living In California)

Housing is expensive in California – a typical home value is $475,900, more than double the national median home value of $204,900. When we break down the homes by what year they were built and how old they are, we see that older homes are worth a lot more – typically when it was built in 1939 or earlier and older it will be about $648,500.


The typical Californian spends $1429 on rent, which is more than the national median of $1,023. With monthly rent from $1295 for a one-bedroom to over $2,000 for five or more bedrooms, this is sure to deter some people from renters in California.

The Cost Of Utilities In California

Cutting back on your utility bill can be as simple as opting for a cheaper internet or cable service. California’s average electricity, water, gas and internet costs are $375 per month.

Cost Of Feeding In California

An important issue to examine when considering the cost of living in an area is food costs. The United States Department of Agriculture has data that shows the cost varies from state to state.

Surprisingly, an average person in California spends much less on food than US citizens as a whole. The Bureau of Labour Statistics, for example, found that the average American household spends over $7000 on food – even though California is one of the most expensive states to live in. This likely reflects how diverse California’s economy is – with more people moving to the state and not all of them having high incomes.

Cost Of Transport Fare In California

With a high cost of living, you will be spending more on transportation. The cost of living in California is 84% higher than the national average, because most people drive to work, and there are more accidents. The average American spends $1,168 on gas alone in one year.

According to MIT’s Living Wage Calculator, for a single person, it is $4,900 per year. While for a family of 4 consisting of two working adults and two children the transportation is $13,317 per year.

Health Related Bills In California

The healthcare system in California is excellent, with great air quality and good weather for living a healthy lifestyle. However, the healthcare system does not come cheaply. The average monthly cost of health insurance ranges from $400 to $7,000 over an annual period in California, depending on your specified needs and insurance coverage.


Tax Clearance In California

Residents are often upset with the high taxes they have to pay. With federal, state, and local taxes, the tax burden in California is high. It has the highest state income tax in the country, with those in the highest bracket paying up to 13.3%. In addition, there are still sales taxes and local taxes, and most people still have to pay federal income taxes. With high taxes, the average adult in California pays $8,248 a year in taxes. This is above the national average of $6,542.

Cost Of An Individual or Family

A family of four living in California should expect to spend $156,292 on annual expenses and a state average for the same size family is $96,515. Living singly is comparatively less expensive than hosting the greatest cost of living for a family of four in California.

Cost Of Childcare In California

Raising a child, in California is costly, and the average annual cost can reach up to $11,129 per year. Various fees are depending on factors like location and age of the child.

Other Costs In California

Beyond the necessities, there are other expenses to take into consideration such as entertainment, potentially unforeseen things like natural disasters, and more. The cost of this varies based on your situation. For instance, you could go to the beach and spend nothing, but if you want to visit interesting places with your family, expect to spend some money.

Wrapping up

High-paying jobs are necessary for living in California. You might also want to manage income and avoid incurring unnecessary costs like high housing expenses.


In California, to live comfortably your income needs to be over $46,636 annually. Single individuals need at least $114,715. Your monthly expenses should include housing, medicine and healthcare, utilities, and public transportation. Housekeeping is costly for families of four or more.


With higher wages in California, it is possible to earn a living, as long as you don’t blow your budget.


Here, we have discussed how much the average salary in California is and how much you would need to earn for a comfortable life. Hope this entry was helpful, please share!!!


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