Cost of Living in San Diego, CA

An Overview of Cost of Living in San Diego, CA

Getting a feel for the cost of living in San Diego is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in San Diego is 168, which is 68% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

If you value affordability in your search for a new place to live, San Diego 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, San Diego 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 San Diego 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 194.5% 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 San Diego, you you will have to spend 12.6% more than average when compared to the typical prices for these items, making it a more expensive place to live.

The cost of groceries continues to rise at an alarming rate. Over the last two years, grocery prices have increased by more than 10%! Unfortunately, in San Diego, the news isn't any better as grocery prices are 15.6% higher than the national average.

What Do Locals Say About the Cost of Living in San Diego?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 35 locals to understand their opinions on the cost of living in San Diego. The results indicated that 29% found it reasonably priced with decreasing prices of goods and services, while 71% viewed it as quite expensive, with increasing prices.

Is San Diego Affordable?

Is San Diego 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 San Diego, for instance, where the median home price falls 240.8% higher than the national average, and monthly rent rates are 86.5% higher than usual. Additionally, median income levels contribute to the equation, with San Diego flaunting a median household income of $83,454, 50.9% higher than the national norm.

What Factors can Influence the Cost of Living in San Diego?

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In San Diego, the prevailing sales tax rate starts at 7.25%, and income tax rates kick off at 1%.

Transportation: In cities with limited or no public transportation, residents may find it necessary to own and maintain vehicles, thereby elevating the cost of living. Monthly expenditures include fuel, insurance, routine maintenance and potential lease or financing commitments. In San Diego, the transportation index stands at 27% higher than the national average.

Healthcare: Healthcare expenses and insurance premiums can vary significantly depending on the specific city or state. Factors such as accessibility to healthcare facilities, out-of-pocket expenses for doctor's visits, dental care expenses, prescription costs and specialized medical care fees can all influence the overall cost of living. In San Diego, healthcare costs are 5% higher than the national average.

Where is the Data From?

The San Diego cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.