“How expensive?” tracks measurements of California’s totally unaffordable housing market.
The pain: California is home to 15 of the nation’s 25 costliest metropolitan areas to live in.
The source: My trusty spreadsheet reviewed the annual “price parity” report from the US Bureau of Economic Analysis, which gives us a snapshot of relative differences in the cost of living between 384 metropolitan areas across the nation in 2023 – including 26 from California. This inflation math is based on both price and spending swings, and is part of the Federal Reserve’s favorite inflation gauge, the “PCE” or Personal Consumption Expenditures rate.
The pinch
This is not a surprise, rather another stark reminder of the state’s biggest economic challenge – the cost of living here.
The nation’s most expensive metro? San Francisco, where it that costs 18.2% more than the typical US metro.
Why? Of course, it’s housing expenses. San Franciscans pay double the national norm, with utilities running 58% higher.
The second-priciest metro in the US is the region comprising Los Angeles and Orange counties, with a cost of living that’s 15.5% above what a typical American pays. Housing is 73% costlier and utilities are 35% higher.
Pressure points
Consider the other 13 California metros high on the costliest places to live scorecard — a collection of big, coastal metros.
Ventura County: Costs 13.5% more than typical US expenses, tied for third-highest nationwide. Housing runs 78% above US costs with utilities 30% pricier.
Santa Barbara: Also No. 3 at 13.5% above normal, with housing 76% above the US and utilities 28% costlier.
Salinas: 13% above (No. 5) – housing 67% above US, utilities 35% higher.
San Jose: 12.9% above (No. 7) – housing 113% above US, utilities 35% higher.
Santa Cruz: 12.6% above (No. 8) – housing 75% above US, utilities 34% higher.
Napa: 11.8% above (No. 10) – housing 62% above US, utilities 39% higher.
San Diego: 11.5% above (No. 13) – housing 86% above US, utilities 54% higher.
San Luis Obispo: 10.8% above (No. 14) – housing 50% above US, utilities 27% higher.
Santa Rosa: 10.1% above (No. 16) – housing 47% above US, utilities 36% higher.
Vallejo: 9.2% above (No. 18) – housing 36% above US, utilities 36% higher.
Sacramento: 8.9% above (No. 19) – housing 34% above US, utilities 33% higher.
Inland Empire: 7.9% above (No. 21) – housing 32% above US, utilities 57% higher.
Stockton: 7.4% above (No. 23) – housing 20% above US, utilities 39% higher.
Painful reality
California’s cheapest place to live still has the nation’s 89th highest cost of living among 384 metros tracked.
Living in Hanford, a Central Valley farm community, is 1.6% cheaper than the national norm. Its housing expenses run 31% below the typical US metro, by this math. But its utility prices are 39% higher. //this has me wondering why poor Hanford pays so much for utilities! anyway, a strange oddity//
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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