F
65%
Overall NAT. AVG.
5%
Goods & Services NAT. AVG.
180%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Arroyo Grande California National
Cost of living165140100
Goods & Services105111100
Groceries107112100
Health care93109100
Housing280196100
Transportation127126100
Utilities157127100

An Overview of Cost of Living in Arroyo Grande, CA

The cost of living in Arroyo Grande affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Arroyo Grande is 165, which is 65% higher than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

If you value affordability in your search for a new place to live, Arroyo Grande may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Arroyo Grande falls into this category, which may not align with your desire for an affordable place to call home.

Housing costs are a very significant part of the Arroyo Grande cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 180.4% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Is Arroyo Grande Affordable?

Is Arroyo Grande an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Arroyo Grande is 230.3% higher than the national average, while the average monthly rent prices are 64.1% higher than average. The affordability of any location can also be influenced by median income levels. Arroyo Grande has a median household income of $88,068, which is 59.2% higher than the national average.

What Factors can Influence the Cost of Living in Arroyo Grande?

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Arroyo Grande starts at 7.25% and the income tax rates start at 1%.

Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In Arroyo Grande, the groceries index is 6.6% higher than the national average.

Subsidies: Some areas might offer government subsidies or assistance programs that help lower cost of living for residents. These programs can include anything from 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 crop subsidies. Areas that offer less subsidies, could see an increase in their cost of living.

Where is the Data From?

The Arroyo Grande 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.

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Cost Of Living Quick Facts

  • The cost of living in Arroyo Grande is 18% higher than the California average
  • The cost of living in Arroyo Grande is 65% higher than the national average
  • Arroyo Grande housing is 180% higher than the national average
  • California general sales tax is 42% higher than the national average
  • California state income tax is 61% lower than the national average

Most Affordable Places to Live in and Around Arroyo Grande

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Compare Arroyo Grande, CA Cost of Living

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      Salary Calculator

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$103,452$8,621$2,414$3,104
      Renters$54,808$4,567$1,279$1,644
      The affordability of the housing market in Arroyo Grande, CA as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Arroyo Grande homeowners, the median income is $103,452. This indicates that a monthly maximum of $2,414 should be spent by homeowners on all housing related costs. Renters have a median income of $54,808. This indicates that renters would have a maximum of $1,279 for their rent related monthly costs.

      California Sales Tax

      State General Sales Tax With Max Surtax
      California 7.25% 10.5%

      California Income Tax

      State Income Tax (Low) Income Tax (High)
      California 1% 13.3%

      Goods & Services

      Item Arroyo Grande National avg. Difference
      Haircut $26.25$24.268.2%
      Beauty Salon $89.33$45.5696.1%
      Toothpaste $3.75$3.701.3%
      Shampoo $1.48$1.2815.6%
      Movie $18.12$12.1349.4%
      Bowling $22.67$18.0025.9%

      Groceries

      Item Arroyo Grande National avg. Difference
      Ground Beef $5.77$5.841.1%
      Fried Chicken $2.63$1.5767.0%
      Milk $4.91$4.675.0%
      Potatoes $4.90$4.930.6%
      Pizza $13.49$12.0911.6%
      Beer $11.13$10.416.9%

      Health Care

      Item Arroyo Grande National avg. Difference
      Optometrist $142.20$125.6813.1%
      Doctor $131.33$135.783.3%
      Dentist $131.50$113.2916.1%
      Ibuprofen $11.78$10.6510.6%
      Lipitor $508.17$468.608.4%

      Housing

      Item Arroyo Grande National avg. Difference
      Home Price $610,000.00$184,700.00230.3%
      Avg. Mortgage Payment $5,847.37$2,346.69149.2%
      Apartment Rent $1,557.00$949.0064.1%

      Transportation

      Item Arroyo Grande National avg. Difference
      Gasoline $4.62$3.4633.6%
      Tire Balancing $61.00$59.921.8%

      Utilities

      Item Arroyo Grande National avg. Difference
      All Electricity $231.40$193.9919.3%
      Phone $193.81$192.250.8%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Guadalupe, CA7,65412726.6%
      Santa Maria, CA105,52813535.4%
      Oceano, CA7,60113737.3%
      Grover Beach, CA13,48115656.1%
      Nipomo, CA18,18216261.9%
      Arroyo Grande, CA17,92416564.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Beltsville, MD17,92213232.5%
      Cary, IL17,92611312.6%
      Sainte-Sophie, QC17,917n/a 
      Sheridan, WY17,9381088.0%
      Lenoir, NC17,9098514.9%
      Arroyo Grande, CA17,92416564.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.