Cost of Living in Monterey, CA

An Overview of Cost of Living in Monterey, CA

Are you thinking about relocating, but curious about the potential cost of living in Monterey? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Monterey stands at 192, making it 92% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

The cost of living in Monterey is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Monterey falls into this category, which may not be suitable for those seeking an economically favorable living environment.

When it comes to the cost of living in Monterey, 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 267% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

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, Monterey does not fare better, with grocery expenses coming in at 14.5% higher than the national average.

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

The most insightful perspective on a city comes from its residents. We recently surveyed 23 locals to gauge their perception of the cost of living in Monterey. The feedback revealed that 26% of respondents found the cost of living to be reasonable, with prices on the decline, while 74% regarded it as notably expensive with prices that continue to rise.

Is Monterey Affordable?

Is Monterey an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Monterey, the median home price is 340.5% higher than what most folks pay across the country, and monthly rent prices are 95.5% higher than the usual rates. Income levels in Monterey come in at $80,908, which is 46.2% higher than the national average.

What Factors can Influence the Cost of Living in Monterey?

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 Monterey, the groceries index is 14.5% higher than the national average.

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In Monterey, the transportation index is 30.4% higher than the national average.

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Monterey, the standard sales tax rate starts at 7.25%, and the income tax rates commence at 1%.

Where is the Data From?

The cost of living data in Monterey displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.