The most common associations with California are sunshine, beaches, Hollywood, and celebrities. However, this is only one part of this beautiful state. Different ethnic groups live here and have formed a rich cultural and culinary scene. This diversity is what broadens your horizons and is therefore appealing to many. For many, Southern California is a dream destination. And it’s not without reason. Living in Southern California can be a great choice for raising a family. Some of the safest cities in the United States are located here. Excellent schools and low crime rates make these places attractive for family life. In addition, California is one of the most expensive states for living. That’s why it’s crucial to have a plan and research the cost of living in Southern California before you move. Thus, you will find places that fit your expectations and budget.
The average cost of living in California
If you are considering moving to California, consider your budget. California is the third most expensive state in the United States. Hawaii and Washington, D.C. are only more expensive. Data from the Bureau of Economic Analysis indicates the median annual cost of living in California is over $46,000. If we consider the monthly level, it is about $3880. Some of the cheapest places in Southern California are:
- Bakersfield
- Fresno
- Lancaster
- Clovis
- Oceanside
The cost of living in Southern California is higher than in other states, but you will find a better quality of life.
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In what follows, we will consider the primary consumer categories to get a clearer picture of costs.
Cost of utilities in California
Utilities in Southern California cost an average of $375 per month. Average costs for electricity are $117, $118 for cable and internet, $63 for gas, and $77 for water. The fact that you live in a Mediterranean climate can save you money. Heating and cooling costs are low compared to other parts of the United States. Also, many older apartment buildings in Los Angeles do not have central heating. Furthermore, the western parts of the city enjoy cooling from coastal breezes. As a result, you can expect your utility bills to be about 30% lower than the national average. The average bill in Los Angeles is about $130 and includes gas, electricity, water, and waste disposal.
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Get ready for rising rents and real estate prices in Southern California.
Housing costs
The first thing you should do if you’re considering renting or buying real estate in Southern California is to take a close look at the prices. It is the third most expensive state for housing. If you don’t have a lot of money to invest, one option is to buy a home in a low-cost-of-living neighborhood. The average cost of a studio apartment is about $1,150, a two-bedroom apartment is about $1,700, and a three-bedroom apartment is over $2,300.
Also, for comparison, the average sales price of a home in California was $700,000, while the national median price was $353,900. Property prices also depend on the city you choose in Southern California for your new home. In addition, real estate prices are higher in Los Angeles County than elsewhere. Here are some of the median home prices in Southern California:
- Los Angeles metropolitan area = $700,000
- San Diego County = $743,000
- Orange County = $935,000
- Bakersfield = $330,317
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The price of food
The average monthly price of food is about $300 per person. If you are single, you will need a monthly salary of about $40,000, excluding taxes. You will spend 9.8% of your annual income on food. Note that the cost of food also varies by region. Southern California is a foodie’s paradise. You probably know it’s the land of the taco truck. You can also buy them for $1.5 to $2. Lunch at one of the best restaurants will cost up to $38. In addition, this bill will be increased by 9.5%, which is the sales tax. Prices for food items such as bread, milk, and eggs are in line with other parts of the country.
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On average, a household of four may spend over $1,200 on groceries.
Organic food prices
Organic food prices are significantly higher. The price difference can be as much as 196%. For example, for ten large ordinary eggs, you would pay $2.19. In contrast, ten organic eggs will cost you $6.49. Organic meat is about 75% more expensive. If you choose organic food, a family of two will have to spend around $140 per week.
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Tax rates
Moving to California will bring you higher taxes. Compared to other states, taxes here are higher than average. Southern California also has one of the highest income taxes in the United States. If your taxable income exceeds $1 million, you will pay a total tax of 13.3%. Income tax rates depend on the resident’s income. They range from 1% to 12.3%. Southern California also has the highest sales tax rate in the state at 7.25%. However, property tax rates are lower than the national average. The average rate is 0.79%, while the national average is 1.19%.
Cost of transportation
Life in Southern California is almost unimaginable without a car. Average transportation costs range from $4,900 to $13,317 per year. The cities have a public transportation system that offers buses and rails. However, it is convenient for people who live near public transportation lines. The price per trip is $1.75. Due to the vastness and size of cities, many areas are not close to public transportation lines. As a result, 84% of people drive to work, and only 2% use public transportation. As a result, you’ll spend a lot of time on the highways, but you’ll also spend a lot of money on car insurance. The average cost of auto insurance is nearly $2,000, more than $500 more than the national average.
The Cost of Living in Southern California: Is It Right for You?
Living in Southern California is expensive, but the average income rate is higher than in many other states. It means that with all the cost of living in Southern California, you will statistically have a better chance of finding a good job. Here are also some of the richest and poorest cities in the United States. It would mean that these costs of living are not unique to everyone. That’s why it’s crucial to make a good plan before you move and estimate the costs to decide in your best interest.
References:
https://livingcost.org/cost/united-states/ca
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