Cost of Living in Newport Beach, CA

An Overview of Cost of Living in Newport Beach, CA

Understanding the cost of living in Newport Beach can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Newport Beach cost of living index is 325, which is 225% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

If you value affordability in your search for a new place to live, Newport Beach 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, Newport Beach 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 Newport Beach 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 725.2% more than the average city. This includes things like home and rent prices, 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 Newport Beach, 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.

Groceries are getting more expensive by the day and the cost of groceries makes up 13% of the overall cost of living index. In the past two years, prices have shot up by over 10%! Unfortunately, in Newport Beach, it's the same story – grocery costs are 13.1% higher than what people pay across the country.

What Do Locals Say About the Cost of Living in Newport Beach?

Locals have the inside scoop on their city. So, we polled 31 residents in Newport Beach 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? 19% find it reasonable with decreasing prices, but 81% think it's quite pricey, with prices that continue to rise.

Is Newport Beach Affordable?

Is Newport Beach 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 Newport Beach, for instance, where the median home price falls 970.1% higher than the national average, and monthly rent rates are 153.8% higher than usual. Additionally, median income levels contribute to the equation, with Newport Beach flaunting a median household income of $133,849, 141.9% higher than the national norm.

What Factors can Influence the Cost of Living in Newport Beach?

Utilities: Much like any other costs, utility expenses can exhibit considerable variations, influenced by factors such as climate, available energy sources, geographic location and state regulations. The costs associated with electricity, water, heating, and waste disposal can vary significantly depending on the city or state in question. In Newport Beach, the utilities index stands at 5.9% lower than the national average.

Urbanization: Urban areas with extensive amenities and job opportunities tend to have a higher cost of living due to increased demand for services and relocation, resulting in higher home prices and higher rents. Less densely populated rural areas, or areas with less demand tend to have fewer amenities and slower job growth, which results in a lower cost of living.

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 Newport Beach, the groceries index is 13.1% higher than the national average.

Where is the Data From?

The Newport Beach 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.