F
241%
Overall NAT. AVG.
8%
Goods & Services NAT. AVG.
764%
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 Saratoga California National
Cost of living341140100
Goods & Services108111100
Groceries115112100
Health care123109100
Housing864196100
Transportation130126100
Utilities132127100

An Overview of Cost of Living in Saratoga, CA

Understanding the cost of living in Saratoga 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 Saratoga cost of living index is 341, which is 241% 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, Saratoga 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, Saratoga 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 Saratoga, 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 763.5% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

The substantial and relentless rise in grocery prices definitely warrants some attention. Over the past two years, grocery expenses have escalated by more than 10%. Having said that, the situation in Saratoga is even less favorable, with grocery prices here being 14.5% higher than the national average.

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

Nobody knows their city better than the people who actually live there. So, we asked 6 local residents how they would rate the cost of living in Saratoga and this is how they responded. 17% of people said that the cost of living was affordable, with prices decreasing, while 83% of people said that the cost of living was very expensive and prices continue to rise.

Is Saratoga Affordable?

Is Saratoga 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 Saratoga, for instance, where the median home price falls 982.8% higher than the national average, and monthly rent rates are 251.8% higher than usual. Additionally, median income levels contribute to the equation, with Saratoga flaunting a median household income of $201,046, 263.4% higher than the national norm.

What Factors can Influence the Cost of Living in Saratoga?

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.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Saratoga, the housing index stands at 763.5% higher than the national average.

Where is the Data From?

The cost of living data in Saratoga 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.

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Cost Of Living Quick Facts

  • The cost of living in Saratoga is 144% higher than the California average
  • The cost of living in Saratoga is 241% higher than the national average
  • Saratoga housing is 764% 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 Saratoga

See all the best places to live around Saratoga

Compare Saratoga, 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$202,012$16,834$4,713$6,061
      Renters$174,659$14,555$4,075$5,240
      To approximate the cost of living and the housing affordability in Saratoga, CA, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Saratoga have a median income of $202,012. Therefore, the amount that a consumer should spend on housing costs should be no more than $4,713 per month to avoid calamity and poverty. The renters in the city have an income of about $174,659, which would make their monthly maximum allowable rental costs $4,075.

      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 Saratoga 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 Saratoga 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 Saratoga 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 Saratoga National avg. Difference
      Home Price $2,000,001.00$184,700.00982.8%
      Avg. Mortgage Payment $8,581.10$2,346.69265.7%
      Apartment Rent $3,339.00$949.00251.8%

      Transportation

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

      Utilities

      Item Saratoga 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.
      Mountain View CDP, CA2,58513030.1%
      Brookdale, CA1,29316261.9%
      Boulder Creek, CA5,30516565.0%
      Lompico, CA88117574.8%
      Alum Rock, CA11,79817877.8%
      Saratoga, CA31,084341240.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Centereach, NY31,10013938.6%
      Lakeside, FL31,058963.7%
      Hopkinsville, KY31,0528712.5%
      Miami Lakes, FL31,02113534.8%
      Princeton, NJ31,16119190.8%
      Saratoga, CA31,084341240.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.