“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.
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 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 than the national norm.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com