Cost of Living in California

California has a cost of living index of 144, making it 44% more expensive than the national average. The statewide median household income is $97,882 (30% above the US median of $75,149). Across 1,379 cities tracked in California, costs vary widely depending on location, proximity to metro areas, and local housing markets.

Housing drives most of the variation. The average median rent across California cities is $1,822/mo (38% above the national median of $1,319), and the average median home value is $663,852 (118% above the national figure of $304,900). There is a 234-point spread between the most affordable city, Calipatria (index 77), and the most expensive, Tiburon (index 311) — an enormous range that reflects dramatic differences in housing markets within the state.

While California is expensive, the higher median income partially offsets these costs. Prospective residents should evaluate specific cities, since some areas within the state are significantly more affordable than others.

The largest cities in California by population are Los Angeles (index 169, pop. 3,857,897), San Diego (index 176, pop. 1,385,061), San Jose (index 216, pop. 990,054), San Francisco (index 228, pop. 836,321), and Fresno (index 105, pop. 543,615). Cost of living varies considerably even among these major population centers, highlighting the importance of comparing individual cities rather than relying on the state average alone.

Data: US Census Bureau (ACS 2023), Zillow, HUD, BEA Regional Price Parities. Updated monthly.