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TEMPO.CO, Jakarta - California serves as an ideal escape for beachgoers with its stunning coastlines. But, did you know that the state is also famous for its high cost of living? According to Visual Capitalist, California is listed among the 2024 highest cost-of-living states in America, with an estimated US$53,171 annual cost of living.
Besides, California is home to some of the most expensive cities in the country, where luxurious lifestyles and high costs of living are the norm. Citing the US News and LA Homes, here’s a closer look at the most expensive cities in California.
List of the Most Expensive Cities in California
1. Los Angeles
Topping our list of the most expensive cities in California is Los Angeles. The high cost of living is partly attributable to the city's thriving entertainment industry.
The so-called City of Angels is prominently short of affordable houses due to an influx of new residents. With the current sky-high prices, no wonder Los Angeles is among the most expensive cities in the U.S.
2. Santa Barbara
Santa Barbara allures visitors with its stunning beaches and a multitude of opportunities for outdoor activities. But, the coastal city is also renowned for its lavish neighborhoods, which many refer to the former as the "playground for the rich and famous."
Similar to Los Angeles, housing is also a major problem in Santa Barbara. People have no choice but to seek housing options outside the city or to commute due to the high cost of renting or housing.
3. Santa Rosa
Next on the list of the most expensive cities in California is Santa Rosa. While people in other cities complain about the rising prices of groceries, those in Santa Rosa don’t share this concern.
They grow much of their produce at home or in community gardens. Yes, Santa Rosa is home to a plentiful of farms, orchards, hopyards, and vineyards.
4. San Diego
San Diego is definitely not for budget-conscious individuals. Living in the city may cost you a fortune, especially when it comes to housing prices. According to the US News, houses in San Diego cost twice as much as the national median sale price.
Even so, for some, the high cost of living is offset by the benefits of residing in San Diego. With such a desirable climate and stunning coastal areas, which many refer to as the “sunshine tax," people are willing to sacrifice the dollars they have to live in the downtown area of San Diego.
5. San Francisco
San Francisco is globally recognized as one of the most expensive cities, not just in California but worldwide. With a population of more than 800,000 in 2024, San Francisco boasts extortionate housing prices, groceries, and utilities.
6. Salinas
Salinas, a city known for its agricultural roots and the birthplace of John Steinbeck, is among the most expensive places to live in the state. Real estate prices contribute to the city's expensive living costs.
While houses in Salinas come with expensive price tags, it is relatively affordable by California standards. Additionally, other expenses in food, transportation, and utilities so far have not exceeded the national average.
7. Vallejo
Living costs in Vallejo remain higher than the national average. However, the city is considered to be the most affordable compared to other parts of the Bay Area.
The median home price stands at approximately US$500,381, making Vallejo the ideal escape for many San Franciscans from extortionate housing.
8. San Jose
San Jose, the capital of Silicon Valley, is another high-cost city known for its thriving tech industry. Home to tech giants like Google and Apple, the median home price here is over $1 million, and the cost of living, especially for housing and dining, remains exceptionally high.
9. Sacramento
The cost of living in Sacramento remains considerably high across the country. Although its median home price has surpassed US$450,000, purchasing a place to live is still attainable. Furthermore, Sacramentans have access to a wide variety of locally sourced foods.
10. Stockton
Aside from Vallejo, Stockton also serves as the perfect alternative for people looking for more reasonable housing prices. The median home price in Stockton is US$372,378, despite being still relatively higher than the national average.
It is also worth mentioning that the Northern California city comes with quite hefty price tags for groceries, utilities, and transit.
11. Palo Alto
You need to take Palo Alto’s cost of living into account before deciding to move to the city. According to Payscale, it’s 49 percent higher than the national average.
People here spend more on utilities and bus fares since both are 10 percent and 24 percent higher than the national average, respectively.
12. Newport Beach
With a population of nearly 90,000 people, Newport Beach’s median home price stands at US$1,720,584, whereas renting a house costs you around US$2,875, as cited from the US News.
Aside from California’s Los Angeles, New York’s Manhattan, Hawaii’s Honolulu, and others are among the most expensive cities in the U.S. Click to find more.
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