The cost of living in California
is sky-high—and climbing all the time, thanks to a competitive housing market and unusually steep transportation costs. A single adult needs at least $45,322 to live comfortably in California. From Disneyland to the giant redwoods, California is a true American wonderland: but with a high quality of life comes an equally high cost of living. Here to break down the real costs of living in California is Jerry
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created to save drivers money on car and home insurance
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How high is the cost of living in California?
California is a famously expensive state—but just how expensive is it to live there? With a cost of living index of 151.7, California has the second-highest cost of living of any US state, right behind Hawaii
. What does that number really mean? Well, the US average cost of living index is an even 100, so any number above 100 means a higher-than-average cost of living. By comparison, Hawaii’s cost of living index is 192.9, while New York
and Oregon’s
are 139.1 and 134.2, respectively. In other words, California stands head and shoulders above just about every other state when it comes to the cost of living. Let’s put that in terms of real costs—like food, healthcare, housing, transportation, and more. Here’s what these essential expenses cost in California, as compared to the national average.
Food: $333 to $978 per month
Leading the list of non-negotiable costs of living is food. In this case, we’re talking about non-restaurant food and drinks—i.e., your monthly grocery bill.
Data from MIT’s Living Wage Calculator
shows that the annual cost of food in California ranges from $3,999 to $11,742, depending on family size, income, and location. A single adult in California typically spends at least $333.25 per month on groceries, while grocery bills for a family of four could total $978.50 every month! By comparison, the Bureau of Labor Statistics found in 2020 that the average monthly grocery bill for US households was approximately $411. Keep in mind that these estimates only include groceries. That morning coffee from Starbucks, your afternoon McChicken, and your date night splurge are all additional expenses on top of this.
Healthcare: $636 per month
According to a 2020 report from the Bureau of Economic Analysis, average annual healthcare costs per person in California total $7,638. That works out to $636.50 per month. That’s significantly higher than the national average of $477 per month.
But unlike food, which is a fairly universal expense, healthcare costs can vary significantly between individuals and families. If you’ve got a household member with expensive prescriptions or other major healthcare costs, you’re likely to see a much higher cost of living in California.
Housing: $1,643 to $2,785 per month
Housing costs play an outsize role in California’s high cost of living. The typical home value
in the Golden State was $790,475 as of April 2022—and costs are rising all the time. How does that work out in terms of monthly costs? Well, your exact housing costs will depend on the type of home you live in:
Median monthly mortgage payment: $2,421
Average studio rent: $1,643
Average one-bedroom rent: $1,964
Average two-bedroom rent: $1,996
Average three-bedroom rent: $2,349
Average four-bedroom rent: $2,785
Of course, these are just averages across the state. For instance, in downtown San Francisco
, the average monthly rent for a studio apartment is just under $3,000—close to the state average for a four-bedroom! Housing costs in L.A.
, on the other hand, are more manageable, with the average one-bedroom going for about $2,371 per month. How do California housing costs compare to the rest of the country? The typical home value in the US is dramatically lower at just $337,560—but average rent is at an all-time high at $1,904 per month.
Transportation: $411 to $1,217 per month
Getting around is another major expense in California, and it depends on a lot of factors—that’s why there’s such a huge range in the average estimate. Californians pay between $411 and $1,217 per month for transportation. For context, the national average for a two-person household is $818 per month.
To put those big numbers in perspective, here are a few important figures:
Average annual cost of car insurance in California: $1,872 to $2,351 (liability
only vs. full coverage
) Muni monthly pass in San Francisco: $81
Average commute length
in California: 46.88 miles Average cost of a gallon of gas, June 2022: $6.25
How much you need to live comfortably in California: $45,322 to $97,243 per year
Based on the numbers above, a single adult needs to make at least $45,322 per year, or $21.82/hour, to live in California. A living wage for a family of four, on the other hand, is $97,243 per year or $46.75/hour!
Taking into account California’s minimum wage of $15/hour, it’s clear that living comfortably in California can be a significant challenge. After all, there’s living, and then there’s living well—and the latter costs more than the bare minimum! Check out the list below to see how some basic non-essentials compare in cost to the national average:
Average cost of a date: $226.35 (US average: $116)
Average cost of a night at the movies: $15.22 (US average: $10.61)
Average cost of a Big Mac: $5.11 (US average: $3.99)
Disneyland tickets: $255 and up per person (US average theme park ticket price: $91)
Average sales tax: 8.82%(US average: 5.09%)
Of course, what makes life comfortable is different for every person. You may be able to comfortably meet all your needs and enjoy a full life in California for less than $45,000—but in most cases, that’s the baseline for basic needs and additional expenses.
The California cities with the lowest cost of living
With the cost of living in California so high, you might be wondering—are there any places in the Golden State where things are a little less expensive.
Good news: there are several California cities with a low cost of living compared to the rest of the state. Although you’ll see a cost of living index (COLI) above the national average in just about every city, a few California locations fall way below the state average. Here’s your list:
Eureka
(COLI: 103.2): This stunning coastal city near California’s legendary redwood forests also boasts the lowest cost of living of any major city in the state! Fresno
(COLI: 103.3): Centrally located, safe, and close to Sequoia and Yosemite National Parks, this city in the San Joaquin Valley has stayed affordable over the years. Bakersfield
(COLI: 103.4): U.S. News and World Report named this Central valley agricultural hub one of the best places to live in the country in 2019. Chico
(COLI: 114.5): This small Northern California city is a favorite among hikers, golfers, and anyone who loves the outdoors. Stockton
(COLI: 115.6): A low cost of living, moderate weather, and the state’s oldest university all make Stockton an attractive place to live.
If you want to realize your dream of living in California without taking on unmanageable living expenses, keep these six cities in your sights!
How to find affordable car insurance in California
California’s cost of living is well above the national average, and car insurance costs are no exception. On average, Californians pay at least $246 more for car insurance each year than most Americans.
But living in California doesn’t have to mean a life sentence to high insurance premiums. In fact, with help from Jerry
, residents of the Golden State have a chance to bring their rates down considerably—without spending all day on the phone or filling out endless forms. How do you win the insurance game in California? Simple: download the Jerry app, enter your information, and wait 45 seconds. Pick the rate you like best, and Jerry’s team of experts will help you switch—no need to get on the phone!
How much could you lower your rate by shopping with Jerry? On average, users see an annual savings of $800+!
“Jerry
quoted me a price that saved me almost $4000 a year in California! I definitely recommend Jerry.” —Patricia B. RECOMMENDEDThis app is great, but the customer service is even better! Not to mention convenient! My husband and I got the lowest rate (much lower than the rates I was finding online through my own searches), quickly, and pretty much all through text message! Thank you so much for a hassle free experience👍
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