Cost of Living in Anaheim, CA

An Overview of Cost of Living in Anaheim, CA

Knowing the cost of living in Anaheim allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Anaheim stands at 162, marking it 62% higher than the national average.

If you prioritize affordability when seeking a new place to live, Anaheim may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Anaheim falls into this category, which may not align with your preferences for a budget-friendly living environment.

When it comes to the cost of living in Anaheim, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 183.4% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Recurring essentials like haircuts, toothpaste, and entertainment, from movies to gym sessions, can really add up in your budget and make up 33% of the cost of living index. In Anaheim, you you will have to spend 12% more than average when compared to the typical prices for these items, making it a more expensive place to live.

The surge in grocery costs is indeed alarming, especially when groceries make up a large portion of your monthly expenditures. Over the past two years, there has been an inflation of over 10% in grocery prices. Unfortunately, Anaheim does not fare better, with grocery expenses coming in at 13.1% higher than the national average.

What Do Locals Say About the Cost of Living in Anaheim?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 25 locals to understand their opinions on the cost of living in Anaheim. The results indicated that 32% found it reasonably priced with decreasing prices of goods and services, while 68% viewed it as quite expensive, with increasing prices.

Is Anaheim Affordable?

Is Anaheim affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Anaheim, for instance, where the median home price falls 226.2% higher than the national average, and monthly rent rates are 83.7% higher than usual. Additionally, median income levels contribute to the equation, with Anaheim flaunting a median household income of $76,723, 38.7% higher than the national norm.

What Factors can Influence the Cost of Living in Anaheim?

Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Anaheim, the groceries index is 13.1% higher than the national average.

Subsidies: Certain cities or states may institute government subsidies or assistance programs designed to alleviate the financial burdens associated with the cost of living for their residents. These programs encompass a variety of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Areas that provide fewer subsidies may see an uptick in their overall cost of living.

Utilities: As with the prices of anything else, utility costs can exhibit significant variations, contingent on factors like climate, energy source availability, geographic location and state regulations. The expenses associated with electricity, water, heating, and waste disposal can fluctuate, either upward or downward, depending on the particular city or state. In Anaheim, the utilities index registers 5.9% lower than the national average.

Where is the Data From?

The Anaheim cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.