Take a closer look at what it takes to budget to live in the Bay Area.
San Francisco is a hub of opportunity, with a strong economy and beautiful weather. It boasts incredible dining options and endless possibilities for outdoor recreation and fitness.
If you’re considering relocating to San Francisco, it’s important to consider the area’s cost of living and average salaries. Like other major cities such as New York and Los Angeles, San Francisco has a high cost of living. One of the biggest expenses to keep in mind is renting a place to live. So, how far does a salary of $100,000, just above the median income of $94,000, go in the Bay Area? Let’s take a closer look.
What’s the average salary in San Francisco?
Living in a city with a high cost of living, such as San Francisco, can make it challenging to earn enough money. The U.S. Census Bureau reports that the median household income in San Francisco is $126,187.
However, a recent study reveals that a $100,000 salary in San Francisco is equivalent to $36,445 after federal, state and local taxes are taken into account, along with the cost of living, including housing, utilities, groceries, transportation and other goods and services.
New government guidelines announced this past June have set the income threshold for low-income individuals in San Francisco at $104,400 or less. This income threshold will determine eligibility for specific housing aid programs.
Top industries in San Francisco
In San Francisco, with Silicon Valley nearby, the technology industry reigns supreme. However, it’s not the only industry thriving in the area. The employees in the tech industry have the highest median salary at $140,000, according to payroll solutions platform Gusto.
The other top industries in the city that have the highest salaries above $100,000 include finance, insurance and logistics. Average salaries in these industries hover between $103,000 and $140,000 per year.
Cost of living in San Francisco
Let’s talk about the cost of living so you can work out your budget if you have an average salary in San Francisco.
Housing costs. In San Francisco, housing is 242.3% higher than the national average. Renting an apartment in San Francisco is expensive — a one-bedroom costs $3,554 per month, up 4 percent from last year. A two-bedroom is $5,007 per month, up 10 percent.
Utility costs. The average energy bill in San Francisco is very high at $275.58, despite the mild weather. When compared to Los Angeles and San Diego, it’s one of the highest in California.
Transportation costs. Luckily, San Francisco has a walk score of 93, indicating that amenities are easily accessible. Additionally, the city has numerous bike lanes, making cycling a viable transportation option. Just be mindful of the city’s hilly terrain. Using public transportation, such as cable cars, buses and rail systems, can also be cost-effective in the long run.
Tax costs. California has the highest state sales tax rate of 7.25 percent in the United States. The minimum combined sales tax rate for San Francisco is 8.625 percent.
Three reasons to move to the Bay Area
Although finding affordable housing can be a challenge, the allure of San Francisco‘s progressive culture, incredible cuisine and active lifestyle continues to draw people in.
1. Experience an outdoor lifestyle
San Francisco has plenty of parks, including the Presidio, with bay views and hiking trails, and Dolores Park with a Disneyworld-like playground and gorgeous views. Muir Woods, north of the city, gets you a great view of the California redwood forests. Enjoy free Sunday concerts with the San Francisco Symphony for a picnic and music.
2. You’ll never stop eating with this culinary scene
San Francisco is the perfect place to explore if you’re a food enthusiast. Many fantastic restaurants cater to all tastes and budgets, from high-end, five-star establishments to food trucks serving delicious street tacos. The city constantly introduces new bakeries, coffee shops seafood and sushi joints worth checking out.
Visit Japantown, one of the largest and oldest in the U.S., with various items ranging from clothing to manga to snacks. Nearly every weekend, you can find a market selling fresh produce and culinary delights, too.
3. The weather is just right
On average, San Francisco experiences temperatures of 80 degrees Fahrenheit or higher for only 21 days per year due to its coastal climate. The coldest month is January, with temperatures typically around 50 degrees Fahrenheit. San Francisco’s rainy season is from November to April, with about 70 rainy days per year, but it’s not too chilly. It’s always a good idea to bring a sweater just in case.
Pack up for San Francisco
Before you consider moving to the Bay area, checking your budget is essential. A good rule of thumb is to earn at least three times the monthly rent to afford an apartment comfortably.
Even though the cost of living is high in San Francisco, it’s hard not to see the benefits and countless opportunities, making it a worthwhile investment. Find your next San Francisco apartment here.
