“What is the cost of living in California?” Many people are eager to live in this Golden State. Palm trees, golden beaches, and Hollywood hills… It is really a place where you could get an enjoyable life. But the daily cost could drag us down. Staggering rents, gas prices, health insurance, and even a simple lunch, we need to calculate precise budgets for each part of them. That’s why no one could escape the question in the first sentence. So let me give you a deep dive into these numbers!
Cost of Living in California: What Is It?
Living would be costly. Housing, commuting, and eating all charge from us a lot of money. But what is the cost of living precisely? What does it include? What are the living expenses in California? Let’s take a holistic look at this part.
What Is Cost of Living?
Cost of living, or COL, is the total amount of money needed to cover basic necessities like housing, food, transportation, and healthcare in a specific area, according to the Social Security Administration of America. Precisely estimating living expenses can be challenging because it depends on location and length of time, but it is still an important parameter for residents to evaluate the possibility of living in a particular place. That’s why it is vital to know the California’s cost of living.
Cost of Living in California: An Overview
The cost of living in California is significantly higher than the national average: $3039 per month for one person. Its overall cost of living index is 142.2, that ranks third in the US, and is 1.35 times more expensive than the country’s average level. You may find some detailed information in this table:
| Cost of Living in California: An Overview | ||
|---|---|---|
| Expense Category | For One Person | For a Family of 4 |
| Rent & Utilities | $2,058 | $3,474 |
| Food | $697 | $1,815 |
| Transport | $107 | $288 |
As you can see, “rent and utilities” make the biggest bite on our budget, which means housing would be the first thing you need to consider and solve if you want to be a Californian. Food will also cost you a lot, and if you have a family instead of being alone, or you want to eat outside frequently, you will also get a significant increase in your living costs.
Cost of Living in California: Detailed Analysis
Life is more than housing and eating, so is cost. Knowing how much it costs to live in California is important for newcomers, but if they want to have an overall comprehension of these numbers, a detailed analysis is of great importance. Take a look at them with us!
1. Cost of Living in California: Housing
| Housing Cost in Some CA Cities | ||
|---|---|---|
| City | Average Home Value | Rent Cost (Per Month) |
| Los Angeles | $949,787 | $2,151 |
| San Francisco | $1,133,023 | $2,867 |
| San Diego | $935,237 | $2,370 |
| San Jose | $1,587,073 | $2,795 |
| Sacramento | $574,156 | $1,770 |
| Fresno | $397,168 | $1,667 |
The house could be the biggest cost of living in California, no matter you decide to buy or rent one. Unfortunately, the median sale price in California is approximately $773,000, compared with a U.S. median existing-home sale price of $355,000 in early 2025. However, home prices in different cities and regions in California have great differences. Median housing price in big cities, like San Francisco, could reach $1.45 million; Sacramento, on the other hand, is around $475,000, only one-third of the former. So the median housing price of the state is not the key; it is the price of your chosen place that matters most.
Thanks to California’s housing market, the cost of living in California would still be high for renters compared with the national average. If you want to rent an apartment with two bedrooms, the cost will be about $2,725 per month; even just a studio apartment could cost you $1,795 each month! With such a high average rent in California, the housing would really be the first thing you need to consider.
- Want to Manage Housing Cost in California?
- If you want to settle in California but can’t find a good place to rent, you may take a look at uhomes.com. It is a reliable platform that offers students housing in Los Angeles, student accommodation in San Diego, and comfortable apartments in San Jose. If you want a home or just need any help, you can feel free to visit their website, and I believe they could help you manage your cost of life in California!
2. California's Cost of Living: Utilities
Apart from housing and eating, buying utilities is also a vital part of the cost of living in California. It includes the cost of energy like electricity and natural gas, as well as the expense of things we need to use every day, like water, Internet, and so on. According to the U.S. Energy Information Administration, the average electric bill in California is $145, and the natural gas bill is $34. For everyday utilities like Internet and water, the average bill per month is $117 and $94. Even though it is not a very high price compared with other living costs like housing or eating costs, the average utility bill in California still reaches $390 a month, which still needs your consideration.
- Want to save on the utility costs? uhomes also provides many housing options in California. They could help you save a lot of money when you’re living in CA! Come to visit their website to take a further look!
3. Cost of Life in California: Food and Groceries
This is also a vital part of the cost of life in California. No one could live without eating, so no one could escape from food cost. What are the precise numbers for satisfying your mouth and stomach? Let take a deeper insight to know how much you need in your wallet to cover your cost of food in California.
Cost of Food and Groceries
Food and groceries have various types, and every people’s need can be totally different. This blog will provide you a detailed food cost table covering much of the daily need for most people:
| Cost of Groceries | ||
|---|---|---|
| Item | CA Average | US Average |
| Milk, 1 L | $1.24 | $1.11 |
| Bread, 0.5 kg | $4.10 | $3.57 |
| Rice, 1 kg | $4.44 | $4.43 |
| Eggs, a dozen | $5.45 | $4.70 |
| Chicken Breast, 1 kg | $13.50 | $12.30 |
| Apples, 1 kg | $5.15 | $5.12 |
| Banana, 1 kg | $2.17 | $1.85 |
| Potato, 1 kg | $3.14 | $2.83 |
| Onion, 1 kg | $2.82 | $2.90 |
| Beer, 0.5 L | $2.41 | $2.41 |
| Toilet Paper, 4 rolls | $4.77 | $4.53 |
You can easily find that California’s prices are higher for almost every item compared with the average level of the whole country, especially for bread and chicken breast, which are two vital things for many American families. Therefore, if you want to live in California, the budget you should think twice.
If You Want to Dine Out
Really not good at cooking, and want to eat something out? Of course, almost everyone has such a feeling once or twice a month. However, dining out means a higher cost of living in California. According to the statistics, eating lunch out would cost a person about $22, and a dinner for 2 can cost them $83! Even a fast-food meal, like McDonald’s, could charge from you about $13. With such a high price, you may think: forget it, I can just buy a Cappuccino to satisfy myself. Unfortunately, that will also cost you $5.71 on average. So if you want to save money, the cost of living in California will tell you: that’s not a good idea.
4. Living Expenses in California: Transportation
When calculating the cost of living in California, you could never overlook the cost of transportation, as the transportation conditions in California are so poor, more cost is needed to offset the inconvenience. Here are some data published by the MIT Living Wage calculator that could reflect the cost of transportation in CA:
| Cost of Transportation | ||||
|---|---|---|---|---|
| 0 Children | 1 Child | 2 Children | 3 Children | |
| 1 Adult | $884 | $1,023 | $1,289 | $1,483 |
| 2 Adults, one working | $1,023 | $1,289 | $1,483 | $1,645 |
| 2 Adults, both working | $1,023 | $1,289 | $1,483 | $1,645 |
Transportation cost may vary for many reasons, for instance, the city you live in, the commute distance, the car you’re driving, etc. However, the transportation expense is still higher in California than the US average by around 37%, i.e. you must prepare a higher transportation budget in this state.
5. Living Cost in California: Healthcare
The cost of healthcare in America is the highest in the world. In 2024, U.S. healthcare spending reached $5.3 trillion, which averages to $14,885 per person. By comparison, the average cost of healthcare per capita in other developed countries is half as much. Meanwhile, this number increased 8.3% compared with the previous year.
Surprisingly, the healthcare cost in California is lower than the average American level. According to the Bureau of Economic Analysis Personal Consumption Expenditures, the average annual cost of health care per person in California is $10,373, significantly lower than the national average. That means you could get enough healthcare at a lower price here. However, you should also be aware that the actual healthcare cost may vary depending on the city you live in, the expected healthcare level, and so on.
6. Cost of Living in Some California's Cities
Now, you may have a deeper understanding towards these cost numbers. But California is a really big state, and that results in great differences between different cities in the cost. So at the end of this part, this blog shares with you some major cities’ living expenses in California, along with their average salary (after tax).
| Cost of Living in Some Californian Cities | |||||
|---|---|---|---|---|---|
| Cities | Housing and Utility | Food and Groceries | Transportation | Total | Monthly Salary after Tax |
| Los Angeles | $2,151 | $750 | $245 | $3,361 | $4,549 |
| San Francisco | $2,867 | $852 | $178 | $4,110 | $7,086 |
| San Diego | $2,370 | $726 | $179 | $3,469 | $5,254 |
| San Jose | $2,795 | $775 | $174 | $3,952 | $5,915 |
| Sacramento | $1,770 | $731 | $146 | $2,825 | $4,380 |
| Fresno | $1,667 | $622 | $117 | $2,566 | $3,632 |
| Long Beach | $1,879 | $664 | $161 | $2,851 | $4,411 |
| Oakland | $2,034 | $877 | $139 | $3,254 | $5,482 |
Cost of Living in California: How Much You Need?
This question is not easy to answer, as everyone has some different criteria on “enough”. So we use a commonly accepted definition created by MIT: the living wage. MIT defines it as “the hourly rate that an individual in a household must earn to support themselves and/or their family.” MIT also provides the living wage in California:
| Living Wage in California (Per Hour) | ||||
|---|---|---|---|---|
| 0 Children | 1 Child | 2 Children | 3 Children | |
| 1 Adult | $28.72 | $50.83 | $64.17 | $82.66 |
| 2 Adults, one working | $38.53 | $46.95 | $51.15 | $60.47 |
| 2 Adults, both working | $19.27 | $27.84 | $34.55 | $42.86 |
These data could give you a rough concept of the living expenses in California. If you want a decent life here, that would be the standard you need to attain.
How to Reduce the Cost of Living in California?
With such a high living expenses in California, it will be harder to achieve a balanced and enjoyable life here. If increasing the wage is not likely in the near future, here are some useful tips to reduce the living costs in California.
- Living outside city centers. Housing prices would be terrible in big cities like Los Angeles, San Francisco, etc. But other smaller cities, like Stockton or Riverside, could offer you lower housing prices while letting you live in California; some places, like the countryside of big cities, could also provide you with some low-cost houses, and you can reach downtown without a high transportation cost.
- Make dishes by yourself. Dining out is good to eat something delicious, but it is costly compared with making food at home. Cooking is actually a fun thing to do, as you could make some awesome food with your own hands, which could give you a sense of achievement. At the same time, cooking at home is healthier and cleaner!
- Use public transportation. Some big cities in California have a robust public transportation network, which could bring you to most places. So if you really need to reduce the cost, try to abandon driving a car to the places where you could reach by subway or a bus. That could help you save the cost of gas, parking, and maintenance.
Final Thoughts
The cost of living in California is relatively high in the US. To enjoy a comfortable life in this state, you need to earn a salary of no less than $28.72 per hour. No matter you are a student who wants to study in California or a job seeker who chooses here as a destination, your income should always be the first thing to consider. But once you could earn a decent salary, California, the Golden State, could offer you a really enjoyable life. So keep going to achieve such a bright future!
FAQ about the cost of living in California
What is the cost of living in California?
The cost of living in California is $3039 per month for one person. This number is significantly higher than the nation’s average. Its overall cost of living index is 142.2, that ranks third in the US, and is 1.35 times more expensive than the country’s average level. Among them, the housing cost being nearly double the national average.
How much money is needed to live comfortably in California?
If you are single, with no children, the wage to meet your daily requirement would be $28.72; if you are married, raising two children, and both of you have salaries, your living wage would be $34.55. The actual number will vary based on the city you live, the living condition you want, and so on.
Is California expensive to live in?
Yes. The average cost of living in California is around $3039 per month for one person, ranking third in the United States. Almost all aspects of living expenses in California, including housing, transportation, groceries, and utilities are higher than the national average.
Which cities have low cost of living in California?
Three cities in California would be cost-friendly: Bakersfield, Redding, and Sacramento. Their median home sale prices are $389,732, $383,801, and $476,699 in early 2025, which are relatively low compared with major cities’ price. For instance, San Francisco’s median home price has reached $1,254,031 according to Zillow.
