Cost of Living in Santa Cruz, CA

An Overview of Cost of Living in Santa Cruz, CA

The cost of living in Santa Cruz 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 Santa Cruz is 203, which is 103% 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, Santa Cruz 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, Santa Cruz falls into this category, which may not align with your desire for an affordable place to call home.

Housing costs make up a big chunk of the cost of living in Santa Cruz, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 303.9% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

The relentless increase in grocery prices is a noteworthy trend. In the last two years, grocery costs have experienced an upward trajectory of over 10%. Unfortunately, Santa Cruz is no exception, where grocery prices are 14.5% above the national average.

What Do Locals Say About the Cost of Living in Santa Cruz?

Locals have the inside scoop on their city. So, we polled 24 residents in Santa Cruz 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? 29% find it reasonable with decreasing prices, but 71% think it's quite pricey, with prices that continue to rise.

Is Santa Cruz Affordable?

Is Santa Cruz affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Santa Cruz, the median home price is 385% higher than the national average and monthly rent prices are 114.8% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Santa Cruz boasting a median household income of $86,618, 56.6% higher than the national average.

What Factors can Influence the Cost of Living in Santa Cruz?

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

Subsidies: Some cities and states may extend government subsidies or aid programs aimed at reducing the cost of living for their residents. These initiatives encompass diverse forms of support, including 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 farm subsidies. Regions with limited subsidy provisions may witness an increase in their overall cost of living.

Housing: When there's a high demand for housing in trendy places, it can cause property prices and rental rates to soar, leading to a significantly higher cost of living. Conversely, in less desirable locations, where demand is low, prices tend to decrease, resulting in a more budget-friendly cost of living. In Santa Cruz, the housing index is 303.9% higher than the national average.

Where is the Data From?

The Santa Cruz 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.