The pain: California is home to fifteen of the 25 costliest metropolitan areas within the country.
The source: My trusty spreadsheet checked this Annual “Price Parity” report from the US Bureau of Economic Analysiswhich supplies us an summary of the relative cost of living differences between 384 metropolitan areas across the country in 2023 – including 26 in California. This inflation calculation is predicated on each price and spending fluctuations and is a component of the Federal Reserve's hottest measure of inflation – the “PCE” or personal consumption expenditure rate.
The pinch
This isn't a surprise, but quite one other stark reminder of the state's biggest economic challenge – the price of living here.
The costliest subway within the country? San Francisco, where it costs 18.2% greater than the standard US subway.
Why? Of course it's the price of housing. San Francisco residents pay twice the national standard, with utility costs 58% higher.
The second costliest metropolitan area within the United States is the region that features Los Angeles and Orange counties, with a price of living 15.5% higher than that of a typical American. Housing is 73% dearer and utility costs are 35% higher.
Pressure points
Consider the opposite 13 California metros that top the list of costliest places to live – a group of enormous coastal metropolises.
Ventura County: Costs 13.5% greater than typical U.S. spending and ranks third highest within the nation. Housing costs are 78% higher than US costs, and utilities are 30% dearer.
Santa Barbara: Also No. 3 at 13.5% above normal, with housing construction 76% higher than within the U.S. and utilities 28% dearer.
Salt pans: 13% higher (#5) – Housing 67% higher than US, utilities 35% higher.
San Jose: 12.9% higher (#7) – Housing 113% higher than US, utilities 35% higher.
Holy Cross: 12.6% higher (#8) – Housing 75% higher than US, utilities 34% higher.
Napa: 11.8% higher (No. 10) – Housing 62% higher than US, utilities 39% higher.
San Diego: 11.5% higher (No. 13) – Housing 86% higher than US, utilities 54% higher.
San Luis Obispo: 10.8% higher (No. 14) – Housing 50% higher than US, utilities 27% higher.
Santa Rosa: 10.1% higher (No. 16) – Housing 47% higher than US, utilities 36% higher.
Vallejo: 9.2% higher (#18) – Housing 36% higher than US, utilities 36% higher.
Sacramento: 8.9% higher (#19) – Housing 34% higher than US, utilities 33% higher.
Domestic Empire: 7.9% higher (No. 21) – Housing 32% higher than US, utilities 57% higher.
Stockton: 7.4% higher (No. 23) – Housing 20% higher than US, utilities 39% higher.
Painful reality
California's most cost-effective place to live still has the 89th highest cost of living within the country amongst 384 metro areas tracked.
Living in Hanford, a farming community within the Central Valley, is 1.6% cheaper than the national norm. By this calculation, housing costs are 31% lower than typical U.S. metropolitan areas. But utility prices are 39% higher than the state norm.
Originally published:
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