California dreamin’ comes at a cost, but it might just be worth it.
California’s got it all—iconic cities, stunning scenery, and a hefty price tag to match. The cost of living in California can be sky-high, especially if you’re renting in San Francisco or looking to buy a home in Los Angeles. But if you’re open to inland cities or the Central Valley, you’ll find much more affordable options without losing the California charm. Let’s dive into what it really costs to live in the Golden State.
Housing costs: Median home prices and average rent in California
Housing costs in California are among the highest in the country, but prices can vary significantly depending on the area you’re living in. The average rent in California is around $2,500 per month, significantly higher than the national average monthly rent of $1,645. Coastal cities and sought-after suburbs drive up rent prices, with higher costs due to their prime locations. So, if you’re after ocean views or vibrant city life, expect to pay a premium for rent. However, inland areas and smaller towns offer more affordable options, often below the state average. Exploring California’s charming, lesser-known spots can uncover affordable finds that still offer a sunny, relaxed lifestyle. So if you’re wondering how much an apartment costs in California, we’ll take a look at the cost of housing in a few popular California cities below.
CA housing costs: Average rents and median home sale prices
| City in California | 1 Bed Avg. Rent | 2 Bed Avg. Rent | Median Home Sale Price |
| National Average | $1,495 | $1,725 | $439,000 |
| Irvine | $3,625 | $4,500 | $1,520,000 |
| San Francisco | $3,587 | $4,916 | $1,280,000 |
| San Diego | $2,862 | $3,721 | $974,000 |
| Los Angeles | $2,753 | $3,743 | $1,000,000 |
| Oakland | $2,569 | $3,542 | $825,000 |
| Sacramento | $2,152 | $2,233 | $500,500 |
| Riverside | $1,932 | $2,324 | $635,000 |
| Modesto | $1,595 | $1,804 | $445,000 |
| Fresno | $1,494 | $1,676 | $400,000 |
| Bakersfield | $1,482 | $1,677 | $405,000 |
| Redding | $1,085 | $1,332 | $395,950 |
Housing costs in popular California cities
Bakersfield
Bakersfield offers a more affordable housing market compared to the state average, with the average one-bedroom rent at $1,482 and two-bedrooms at $1,677— the rent prices here are well below California’s average rent of $2,500. While the price of homes for sale in Bakersfield has risen 1% over the last year, it remains budget-friendly compared to other California cities. With its small-town charm, growing job market, and proximity to outdoor attractions, Bakersfield offers a more affordable option for those seeking California living without the high costs of coastal areas.
Read more: Is Bakersfield, CA a Good Place to Live? | 12 Popular Bakersfield, CA Neighborhoods
Fresno
Another California city offering a lower cost of living when it comes to housing prices is Fresno. With the average rent for a one-bedroom at $1,494 and a two-bedroom at $1,676, Fresno’s rent prices are well below the state average, providing more breathing room compared to California’s pricier cities. Fresno’s proximity to national parks like Yosemite and Sequoia, a growing job market, and its agricultural roots give it a unique mix of urban convenience and natural beauty. For those seeking a more relaxed lifestyle with plenty of outdoor opportunities, Fresno strikes a balance between affordability and quality of life.
Read more about Fresno: Should I Move to Fresno, CA? 10 Pros and Cons to Consider
Los Angeles
Now let’s take a look at rent prices in Los Angeles. L.A. isn’t just home to movie stars and sunny beaches—it’s also where the cost of living shines pretty bright. Renting a one-bedroom here will cost you around $2,753 each month, while a two-bedroom averages $3,743. And if you’re thinking about buying, the median home price hovers around $1 million. But with endless entertainment, diverse neighborhoods, and world-class dining, you might just find it’s worth every penny to call the City of Angels home.
Read more: 11 Pros and Cons of Living in Los Angeles
Sacramento
Sacramento strikes a sweet spot between affordability and city charm, making it a compelling choice for those looking to move to California without breaking the bank. While rental prices in Sacramento have been on the rise, with a one-bedroom averaging $2,152 (up 7% from last year) and a two-bedroom at $2,233 (a 6% increase), it’s still a more budget-friendly option compared to other nearby cities. For those considering homeownership, the median sale price in Sacramento is $500,500, Sacramento offers a balanced lifestyle that doesn’t come with the sky-high costs of other major California cities.
Read more: 14 Pros and Cons of Living in Sacramento, CA
Discover popular Sacramento neighborhoods: Downtown Sacramento Neighborhood Guide | North Oak Park Neighborhood Guide | Curtis Park Neighborhood Guide
San Diego
San Diego combines stunning coastal views with a laid-back lifestyle, but it comes at a cost. The cost of living in California is already high, but in San Diego, the average rent for a one-bedroom is $2,862, while a two-bedroom averages $3,721—both above the California average rent of $2,500. That said, many find that the city’s unbeatable weather, vibrant neighborhoods, and beachside lifestyle make it worth the higher price tag.
Read more: 11 Pros and Cons of Living in San Diego, CA
Discover popular San Diego neighborhoods: Gaslamp Quarter Neighborhood Guide | Pacific Beach Neighborhood Guide | North Park Neighborhood Guide
San Francisco
San Francisco is known for its iconic skyline and tech-fueled economy, but it’s also one of the most expensive places to live in the state. The cost of housing in California approaches some of its peak price points here, with the average rent for a one-bedroom at $3,587 and a two-bedroom at $4,916. Homeownership isn’t cheap either, with the median sale price sitting at $1.28 million. However, for many, the city’s rich culture, career opportunities, and unique character outweigh the high cost of living.
Read more: 11 Pros and Cons of Living in San Francisco, CA | 15 Hidden Gems in San Francisco
Discover popular San Francisco Neighborhoods: Nob Hill Neighborhood Guide | Pacific Heights Neighborhood Guide | North Beach Neighborhood Guide
Cost of utilities in California
When you’re evaluating the cost of living in California, you’ll want to factor in the cost of utilities.
For renters in California, utilities typically include electricity, gas, water, trash services, and sometimes internet, though what’s included in rent can vary by property. Electricity costs can be high due to hot inland summers and air conditioning usage, such as in Bakersfield, while coastal areas may have more moderate bills, like in San Diego. Water costs can also fluctuate with the state’s ongoing drought and conservation efforts.
Overall, utilities tend to be higher than the national average, reflecting California’s overall high cost of living. Let’s take a look at the average utility costs for some of our California cities below:
| Monthly Energy Bill | Comparison to National Avg. | |
| National Average | $200.07 | |
| Bakersfield | $412.82 | +63% more |
| Irvine | $208.15 | 0% |
| Fresno | $285.79 | +27% more |
| Los Angeles | $231.21 | +10% more |
| Modesto | $342.58 | +42% more |
| Oakland | $348.63 | +45% more |
| Riverside | $231.35 | +13% more |
| Redding | $215.88 | +2% more |
| Sacramento | $341.39 | +43% more |
| San Diego | $273.87 | +20% more |
| San Francisco | $348.07 | +48% more |
Data from Redfin’s Cost of Living Calculator, September 2024
Grocery costs in California: Rural savings vs. coastal premiums
Groceries in California cost about 5% more than the national average. Staples like dairy, fresh produce, and meat are typically more expensive, particularly in major cities. The state’s focus on organic and locally sourced foods can also drive up prices in certain areas. However, California’s strong agricultural sector means local, seasonal produce can sometimes be found at lower prices in certain regions, like Fresno or Bakersfield.
For example, groceries in Bakersfield cost about 5% more than the national average, with a loaf of bread priced at $3.92. In San Francisco, groceries are 23% above the national average, so that same loaf will cost around $4.66.
California transportation costs often lead the nation
Transportation costs in California can really drive up your monthly expenses. Gas prices often top the national average – in 2023, the average cost of gas per gallon in California was $4.97, compared to the national average of $3.39. Car insurance rates can also be steep, reflecting the state’s crowded roads and busy commutes. In major cities like Los Angeles and San Francisco, you’ll also need to budget for pricey parking. However, the extensive public transportation systems available here can offer some relief. In more rural areas, like Riverside or Fresno, you might find parking is easier on the wallet, but you’ll still want to budget for vehicle maintenance.
Taxes in California exceed the national average
In California, the statewide sales tax is 7.25%, meaning a $100 meal will cost you an extra $7.25 in taxes. Meanwhile the national average falls between 5%-7%. However, many districts tack on additional local taxes, causing sales tax rates to differ across cities. This makes some areas more expensive than others.
Here’s a look at combined sales tax in a few California cities, from highest to lowest:
| California City | Combined Sales Tax |
| Oakland | 10.25% |
| Los Angeles | 9.5% |
| Modesto | 8.88% |
| Riverside | 8.75% |
| Sacramento | 8.75% |
| San Francisco | 8.75% |
| Fresno | 8.35% |
| Bakersfield | 8.25% |
| Irvine | 7.75% |
| San Diego | 7.75% |
| Redding | 7.25% |
California’s income tax rates range from 1% to 13.3%, depending on your income level, with the highest rate applying to earnings over $1 million.
California healthcare prices
Healthcare costs in California can be higher than the national average, influenced by factors such as insurance premiums, out-of-pocket expenses, and prescription prices. However, these costs vary greatly depending on individual needs, including the type of insurance coverage, specific medical conditions, and the frequency of care required. While California offers a range of health coverage options and subsidies, including Medi-Cal for low-income individuals, personal healthcare expenses will differ based on each person’s unique situation and healthcare needs.
The national average cost for a dentist visit is $115.50 while a doctor visit is $140.46. Throughout California, you’ll see a range of average costs for each. In Bakersfield, it’ll cost $126.33 for a dentist visit and just $93.63 for a doctor visit, on average. But if we take a look at cities in the Bay Area, we’ll see that the costs are higher than the national average, with a dentist visit in Oakland costing around $152.73 and a doctor visit at $170.90. In Sacramento, a dentist visit comes out to around $117.35, while a doctor visit costs an average of $183.78.
How much do I need to earn to live in California?
The amount you need to earn to live comfortably in California varies widely depending on the region and your lifestyle. However, let’s use the 30% rule as a guideline, which suggests that no more than 30% of your gross monthly income should be spent on rent. This rule helps ensure that you have enough income left for other expenses and savings. Based on California’s average rent of $2,500, you’d need to earn at least $8,333 per month, or about $100,000 annually, to keep your housing costs within this recommended budget. If you need to do some number crunching to make sure that the perfect apartment fits into your budget, check out our rent calculator.
Methodology
Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.
