Cost of Living in California
Cost of Living in California
(Last Updated – 03/2025)
Lots of people are California dreamin’, but the reality is that the most populous U.S. state is one of the most expensive.
While thinking of wealth, muse on health. If you’re committed to a healthy lifestyle, you’ll be in good company in California.
Innerbody Research found that the Golden State has the healthiest population in the country. All of those sunny days — 258 of them a year — must be keeping everyone fit and happy.
If you’re tempted to move to this sprawling state, keep reading to learn what the California cost of living looks like. Don’t forget to pack your sunglasses.
What’s the Average Cost of Living in California?
Average Cost of Living in California: $64,835 per year
If you have California beaches on your mind, make sure you take a close look at your monthly budget.
California is the fourth most expensive state in the country, according to MERIC data. The only U.S. places that cost more are Hawaii, Washington, D.C., and Massachusetts. What is the cost of living in California? According to 2024 data from the Bureau of Economic Analysis, the annual average cost of living in California is $64,835. Based on that number, it would cost $5,403 per month to live in California. Here is how that breaks down by major spending categories.
|
Category |
Average Annual Per-Capita Cost in California |
|
Housing and Utilities |
$12,188 |
|
Health Care |
$10,373 |
|
Food and Beverages (nonrestaurant) |
$4,708 |
|
Gasoline and Energy Goods |
$1,320 |
|
All Other Personal Expenditures |
$36,245 |
Housing Costs in California
Average Housing Costs in California: $1,599 to $3,082 per month
You’re going to be hard pressed to rent or buy a place for less than $1,000 a month in California, despite the fact that the state has over 14.7 million housing units. Zillow put the median sale price of California homes at $773,263 in December 2024, compared with a U.S. median existing-home sale price of $355,328 in January 2025.
Here’s what housing costs look like on a monthly basis, according to data from the U.S. Census Bureau:
• Median monthly mortgage cost: $2,865
• Median studio rent: $1,599
• Median one-bedroom rent: $1,742
• Median two-bedroom rent: $2,062
• Median three-bedroom rent: $2,304
• Median four-bedroom rent: $2,790
• Median five-bedroom (or more) rent: $3,082
• Median gross rent: $1,992
Home prices can vary greatly throughout this state. These are the typical home prices in 20 major California cities, according to Zillow, in December 2024.
|
California City |
Typical Home Price |
|
Los Angeles(LA Housing Market Trends) |
$949,787 |
|
San Francisco(SF Housing Market Trends) |
$1,133,023 |
|
Riverside |
$582,674 |
|
San Diego(SD Housing Market Trends) |
$935,237 |
|
Sacramento(Sacramento Housing Market Trends) |
$574,156 |
|
San Jose(San Jose Housing Market Trends) |
$1,587,073 |
|
Fresno |
$397,168 |
|
Bakersfield |
$355,699 |
|
Oxnard |
$867,649 |
|
Stockton |
$537,036 |
|
Modesto |
$463,860 |
|
Santa Rosa |
$793,794 |
|
Visalia |
$347,172 |
|
Vallejo |
583,542 |
|
Santa Maria |
$967,801 |
|
Salinas |
$832,770 |
|
San Luis Obispo |
$884,681 |
|
Merced |
$411,638 |
|
Santa Cruz |
$1,134,675 |
|
Chico |
$389,439 |
Utility Costs in California
Average Utility Costs in California: $390 per month
Utilities can add up fast, especially when you add cable and internet bills.
|
Utility |
Average California Bill |
|
Electricity |
$145 |
|
Natural Gas |
$34 |
|
Cable & Internet |
$117 |
|
Water |
$94 |
Sources: U.S. Energy Information Administration, Electric Sales, Revenue, and Average Price; Statista.com, Average monthly residential utility costs in the United States, by state; DoxoInsights, U.S. Cable & Internet Market Size and Household Spending Report; and Rentcafe.com, What Is the Average Water Bill?
Groceries & Food
Average Grocery & Food Costs in California: $392 per person, per month
You gotta eat. How much should you plan to spend on food in California?
The Bureau of Economic Analysis estimates that California’s average annual nonrestaurant food cost per person is $4,708. That equates to $392 per person, per month. The average family of four could end up spending $1,568 per month on groceries.
Where you live in California can have an impact on food pricing. The Council for Community and Economic Research, which ranks the food costs in major American cities, shared the cost of groceries in California cities as of 2024, from lowest to highest.
|
California City |
Grocery Items Index |
|
Bakersfield |
102.4 |
|
Redding |
105.7 |
|
Sacramento |
106.9 |
|
Los Angeles |
109.3 |
|
Orange County |
109.9 |
|
San Diego |
111.1 |
|
San Jose |
115.0 |
|
Oakland |
117.2 |
|
San Francisco |
123.6 |
Transportation
Average Transportation Costs in California: $10,607 to $19,738 per year
From San Diego all the way up to Sacramento, California is notorious for its bad traffic, so prepare to spend a lot of time in the car. How much will all that commuting time cost you?
How many children you have and how many working adults are in your family can all affect how much transportation will cost you in California. The following results from MIT’s Living Wage Calculator, with data from 2024, can give you a general idea of what to expect cost-wise.
|
Family Makeup |
Average Annual Transportation Cost |
|
One adult, no children |
$10,607 |
|
Two working adults, no children |
$12,276 |
|
Two working adults, three children |
$19,738 |
Health Care
Average Health Care Costs in California: $10,373 per person, per year
According to the Bureau of Economic Analysis Personal Consumption Expenditures by State report, the average annual cost of health care per Californian is $10,373.
Of course, your specific health care needs and your coverage also play a large role in how much health care will cost you each year.
Child Care
Average Child-Care Costs in California: $990 to $1,785 or more per child, per month
It’s no secret that child care is one of the larger monthly expenses. In the state of California, what you can expect to spend depends on the age of your child and if you choose to have home-based family care or not.
Good to know: By the 2025-26 school year, the state plans free universal pre-K for all 4-year-olds.
These are the average child care costs you can expect in California, per data from costofchildcare.org.
|
Type of Child Care |
Average Cost Per Month, Per Child |
|
Infant Classroom |
$1,785 |
|
Toddler Classroom |
$1,388 |
|
Preschooler Classroom |
$990 |
|
Home-Based Family Child Care |
$1,269 |
Taxes
Highest Marginal Tax Rate in California: 13.3%
California residents are used to paying a hefty tax bill. State income taxes can go as high as 13.3% for those at the top of the graduated-rate income scale.
That is the highest state income tax rate in the country, as noted by the Tax Foundation’s State Individual Income Tax Rates and Brackets for 2025. Of course, most earners still need to pay federal income taxes.
If you’re looking for somewhere to live that doesn’t charge any state income tax, consider Florida, Tennessee, Texas, South Dakota, Wyoming, Nevada, Washington, or Alaska.
Miscellaneous Costs
It’s obviously important to have an understanding of what the essentials (food, rent, utilities, etc.) will cost you, but we don’t just purchase essentials. What would the fun in that be?
The Bureau of Economic Analysis estimates that additional personal expenditures per Californian come out to $36,245 per year.
Let’s take a closer look at what you might spend some of that money on (costs are as of February 2025):
• Tickets for one day at Disneyland: $103 or more for adults, depending on day and ticket type
• Annual family membership for the Monterey Bay Aquarium: $295
• A day at the beach: Starting at $0 at beaches with free parking
• A world famous Pink’s Hot Dog in Los Angeles: $7.50 for one chili cheese dog with mustard and onions
Recommended: What Are the Average Monthly Expenses for One Person?
How Much Money Do You Need to Live Comfortably in California?
What it means to live “comfortably” is hard to nail down, and your definition will depend on your personal standards. Keeping that in mind, when it comes to living in California comfortably, U.S. News & World Report’s Affordability Rankings, place the Golden State as the least-affordable state. Ouch.
It turns out that having beautiful weather almost every day of the year comes at a price. MERIC also listed California as one of the most expensive states to live in, so take a close look at your budget before moving to California and choose your housing accordingly.
What Cities Have Low Cost of Living in California?
To help you find one of the more affordable areas to live in California, we’ve reviewed the Council for Community and Economic Research’s Cost of Living Index for 2024 to find three cities where cost of living is least likely to break the bank.
Bakersfield
With a cost-of-living index of 111.7, you’re most likely to find relative affordability in Bakersfield. Nature lovers will appreciate having close proximity to whitewater rafting and the aquatic center, as well as the ability to join local hiking clubs. Zillow reported a median home sale price of $389,732 in early 2025.
Redding
Known as the “trails capital of California,” Redding is an outdoorsy person’s dream, with a sea of green, leafy trees in spring and summer (and beautiful fall colors in autumn). As the second-most-affordable city in California, Redding comes in just after the leader with a score of 110.5. According to Zillow, the median sale price for a home in Redding is $383,801 as of early 2025.
Sacramento
Just south of Redding is Sacramento. It’s the third-most-affordable city in California, with a cost-of-living index of 128.8. If you’re looking for a big-city feel without a big-city price, Sacramento may be the place for you. With more than 1.5 million residents in Sacramento County as of 2021, you’re sure to make a new friend or two. There are also more than 30,000 employer establishments here for when you’re ready to look for a new job. Zillow showed a median home sale price of $476,699 in early 2025.
Helpful Resources for Future California Residents
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From beaches to deserts to mountains, California has it all. Because the Golden State has so much to offer, the cost of living in California is relatively high. Still, you may be wooed by the West Coast to put down roots.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
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