Yahoo Finance See Why These California Cities Have the Highest and Lowest Costs of Living So Far in 2024
California is notorious for being an expensive place to live. From high taxes to mind-boggling housing prices, many cities in The Golden State are simply unaffordable for the average American. BestPlaces puts the cost of living at just under 50% higher than the national average. For a family to live comfortably in the state, it would take a minimum annual income of around $140,400.
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At GOBankingRates, we searched the cities with the highest and lowest costs of living in the state to see if there is a large difference between the two and what factors may contribute to the disparity. Whether you are hoping to relocate to the West Coast wonder or are just curious about how much it would cost to live there, you won’t want to miss this info. Here are the priciest and most affordable cities in California and what causes their respective costs of living.
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Hillsborough, California
With a cost of living of $273,632, Hillsborough, California, is 150% more than the national average. The town has a population of 11,258, making it a tight-knit community with several affluent neighborhoods. Incorporated in 1910, the city is only a short commute from San Francisco. Located in San Mateo County, the quaint town is known for being a quiet retreat with large home lots and award-winning schools.
Cost of Living
The primary factor affecting the cost of living in this California town is housing. According to Zillow, the average home value in Hillsborough is $5,230,123. While housing prices have been down 1.1% over the past year, the reality is that homes rarely go for sale in the area, and when they do, they generally cost over $1 million.
In addition to prohibitive housing costs, many other categories also exceed the national average. For instance, you can expect to pay 24% more for groceries in Hillsborough than the average person would in the U.S. It is expected that you would need $7,049 per year to cover your grocery bill if you decide to move to the pricey residential community. You will also want to prepare for higher-than-average transportation and healthcare costs. You should plan for around $10,174 a year in transportation expenses and $6,868 for healthcare costs.
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Susanville, California
The most affordable city in California, when it comes to cost of living, is Susanville, California. If you are looking for a less expensive community on the West Coast, you should consider Susanville. The town has a population of 15,737 and a cost of living of $34,696, representing 11% less than the national average. Located in the northeastern area of the state, the city has an unparalleled landscape and plenty of outdoor activities. Only an hour from Reno, Nevada, and two hours from Redding, the town is nestled in the Shasta Cascade region.
Cost of Living Factors
There are several factors that affect Susanville’s low cost of living. Housing in the area is considerably less than in most other cities in the state. As reported by Zillow, the average home value in Susanville is $238,500. Housing prices have dropped slightly (0.8%) over the past year.
While low housing prices may be the main reason for the town’s affordability, residents will find other ways to save as well. Groceries are slightly cheaper than the national average. You should plan to spend approximately $5,583 a year on food. Transportation costs are also less than what the average American would pay. People in Susanville generally pay 14% under the national average for their transportation expenses. Be sure to set aside around $5,953 a year for transportation costs.
On the other hand, utilities and healthcare expenses are higher than the average in the U.S. Utilities cost Susanville residents about just under $5,000 per year, while annual healthcare costs are over $7,000.
Methodology: For this study, GOBankingRates analyzed 6,300 cities across the United States to find the cheapest and most expensive cost of living cities in each state. First GOBankingRates found the cost of living indexes as sourced from Sperlings BestPlaces and using the national average expenditure costs for all residents, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost can be calculated for each city. The total population was sourced from the US Census American Community Survey, and the livability index was sourced from AreaVibes. All data was collected on and is up to date as of May 21, 2024.
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This article originally appeared on GOBankingRates.com: See Why These California Cities Have the Highest and Lowest Costs of Living So Far in 2024
