F
100%
Overall NAT. AVG.
8%
Goods & Services NAT. AVG.
294%
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 Morgan Hill California National
Cost of living200140100
Goods & Services108111100
Groceries115112100
Health care123109100
Housing394196100
Transportation130126100
Utilities132127100

An Overview of Cost of Living in Morgan Hill, CA

Are you thinking about relocating, but curious about the potential cost of living in Morgan Hill? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Morgan Hill stands at 200, making it 100% 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.

If you prioritize affordability when seeking a new place to live, Morgan Hill 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, Morgan Hill falls into this category, which may not align with your preferences for a budget-friendly living environment.

Housing costs significantly influence the Morgan Hill cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 293.9%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.

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, Morgan Hill 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 Morgan Hill?

Locals have the inside scoop on their city. So, we polled 6 residents in Morgan Hill to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 17% find it reasonable with decreasing prices, but 83% think it's quite pricey, with prices that continue to rise.

Is Morgan Hill Affordable?

Is Morgan Hill 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 Morgan Hill is 379.9% higher than the national average, while the average monthly rent prices are 93.5% higher than average. The affordability of any location can also be influenced by median income levels. Morgan Hill has a median household income of $128,373, which is 132% higher than the national average.

What Factors can Influence the Cost of Living in Morgan Hill?

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 Morgan Hill, the standard sales tax rate starts at 7.25%, and the income tax rates commence at 1%.

Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Morgan Hill, the transportation index is 30.4% higher than the national average.

Utilities: Similar to the prices of any other goods or services, utility expenditures can exhibit substantial variability, influenced by factors such as climate, energy sources accessibility, geographical location and state regulations. Costs related to electricity, water, heating, and waste disposal can fluctuate, whether higher or lower, contingent on the city or state. In Morgan Hill, the utilities index is 31.8% higher than the national average.

Where is the Data From?

The Morgan Hill 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. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Morgan Hill is 43% higher than the California average
  • The cost of living in Morgan Hill is 100% higher than the national average
  • Morgan Hill housing is 294% 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 Morgan Hill

See all the best places to live around Morgan Hill

Compare Morgan Hill, CA Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      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$159,946$13,329$3,732$4,799
      Renters$74,419$6,202$1,736$2,233
      A good way to judge both the affordability of the housing and the cost of living in Morgan Hill is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Morgan Hill has a median income of about $159,946 for people who own homes. Based on that number, a maximum of $3,732 should be spent on expenses related to housing. Renters have a slightly different median income, which is $74,419. Based on this average, renters should spend no more than $1,736 on all rental costs if they want to maintain a non-impoverished standard of living.

      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 Morgan Hill National avg. Difference
      Haircut $33.94$24.2639.9%
      Beauty Salon $48.51$45.566.5%
      Toothpaste $3.72$3.700.4%
      Shampoo $1.66$1.2829.9%
      Movie $13.31$12.139.7%
      Bowling $33.30$18.0085.0%

      Groceries

      Item Morgan Hill National avg. Difference
      Ground Beef $5.79$5.840.8%
      Fried Chicken $2.13$1.5735.7%
      Milk $5.05$4.678.2%
      Potatoes $4.77$4.933.4%
      Pizza $14.92$12.0923.5%
      Beer $10.99$10.415.6%

      Health Care

      Item Morgan Hill National avg. Difference
      Optometrist $158.95$125.6826.5%
      Doctor $194.05$135.7842.9%
      Dentist $147.78$113.2930.4%
      Ibuprofen $11.51$10.658.1%
      Lipitor $390.15$468.6016.7%

      Housing

      Item Morgan Hill National avg. Difference
      Home Price $886,300.00$184,700.00379.9%
      Avg. Mortgage Payment $8,581.10$2,346.69265.7%
      Apartment Rent $1,836.00$949.0093.5%

      Transportation

      Item Morgan Hill National avg. Difference
      Gasoline $4.81$3.4638.9%
      Tire Balancing $65.62$59.929.5%

      Utilities

      Item Morgan Hill National avg. Difference
      All Electricity $294.74$193.9951.9%
      Phone $190.07$192.251.1%
      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.
      Freedom, CA3,95914848.2%
      Watsonville, CA52,39815352.9%
      Interlaken, CA7,59616261.8%
      Amesti, CA3,24017575.2%
      Gilroy, CA55,22718281.7%
      Morgan Hill, CA44,78920099.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Binghamton, NY44,8198515.1%
      Plainfield, IL44,85712424.2%
      Winter Garden, FL44,88811717.0%
      Strongsville, OH44,6751021.9%
      San Bruno, CA44,663219119.5%
      Morgan Hill, CA44,78920099.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.