California cost of living
Can you afford to live in the Golden State?
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Relocating to California offers a unique blend of cultural diversity, natural beauty and economic opportunity. However, before packing your bags, it’s essential to get a clear picture of what everyday expenses look like in the Golden State. The cost of living here is often a deciding factor for families and individuals considering a move.
To determine the cost of living in California, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in California spend $64,835 each year on goods and services, on average.
Jump to insightThe median rent in California is $2,201, versus the national median rent of $1,639.
Jump to insightResidents in California spend $297.72 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $4.49 in California.
Jump to insightRecent data shows that employees in California pay $1,356 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in California
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in California was $64,835 in 2023. This number reflects the typical amount residents devote each year to housing, health care, groceries, fuel and a variety of other goods and services.
Here’s a breakdown of the largest spending categories in California:
| Category | Annual per-capita cost in California |
|---|---|
| Housing and utilities | $12,188 |
| Health care | $10,373 |
| Food and beverages for off-premises consumption | $4,708 |
| Gasoline and other energy goods | $1,320 |
| All other personal consumption expenditures | $36,245 |
| Total cost | $64,835 |
Housing costs in California
Housing is the largest monthly expense for most Californians. According to 2025 data from Apartments.com, the average rent in California is $2,201, compared with the national average rent of $1,639. The amount you pay for rent will depend on your city, neighborhood and the size of your home. The U.S. Census Bureau’s 2023 American Community Survey provides these average monthly rents across California:
- One-bedroom rent: $1,742
- Two-bedroom rent: $2,062
- Three-bedroom rent: $2,304
- Four-bedroom rent: $2,790
For those interested in buying a home, the median home price in California is $837,800, much higher than the U.S. median home price of $446,638.
Property taxes are another factor to consider. California’s effective property tax rate is 0.7% — among the highest in the nation.
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Food costs in California
Grocery and food expenses in California depend on both where you live and your eating habits. According to the most recent U.S. Census data, the average Californian spends $297.72 per week on groceries, while the U.S. average is $270.21.
Living in a major city often means higher food prices, both at grocery stores and in restaurants. Residents who dine out frequently or shop at specialty markets will see their costs climb even further. On the other hand, cooking at home and shopping at discount or bulk retailers can help manage expenses, especially outside of urban areas where prices are less steep.
Transportation costs in California
Transportation is another major component of the cost of living in California. The average price for a gallon of regular gas is $4.49, higher than the U.S. average of $3.13.
For those who drive, auto insurance is also a significant expense. The average annual premium in California is $1,252.19, compared with $1,258 nationally.
Health care costs in California
The typical employee contribution for employer-sponsored health insurance is $1,356 per year in California, while employers pay the remaining $6,714 out of a total premium of $8,070.
Nationally, employees contribute $1,640 out of a total annual premium of $8,182.
Utility costs in California
Utility prices in California can be noticeably higher than in other states. The average monthly electric bill is $144.81, while the national average is $136.84.
For natural gas, Californians pay $22.55 per thousand cubic feet, compared with $12.92 across the U.S.
FAQ
Does California have a high cost of living?
Yes, California has a higher cost of living than the national average. Housing and utilities are much more expensive than in most states, with typical rent and home prices far above U.S. averages.
Is California a good place to live?
Yes, California is a good place to live if you’re seeking diverse communities, economic opportunity and access to world-class amenities. While fewer people have moved to California recently, many are still drawn to its vibrant cities and mild climate. However, you should be prepared for higher costs in most aspects of daily life.
Is California good for renters?
No, California isn’t good for renters. The state has some of the highest rental prices in the country, and finding quality housing can be difficult. While tenant protections are stronger than in many states, the high prices and limited availability mean renters face more competition and higher monthly payments.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
