If you’re moving to California or relocating within the state, understanding the costs of living in different cities and regions is crucial. Whether you have the budget for the best or want to know which cities to avoid due to high costs, exploring California’s most expensive cities can be enlightening. Discover why tech wealth, ocean views, and upscale lifestyles drive up housing costs in these areas. Sit back and enjoy a snapshot of the economic landscape where high prices are simply part of the postcode.
Key Takeaways
This Article Includes
- San Francisco, despite a recent decline in home prices, continues to showcase a healthy market with steady demand and high home prices, supported by its strong tech industry and stable real estate market expectations.
- Coastal cities like Santa Barbara and Santa Monica maintain their high cost of living due to their desirable lifestyle offerings, such as beautiful beaches and luxury amenities, which influence the housing demand and market prices.
- Iconic cities such as Los Angeles and San Francisco remain some of the most expensive in California, with factors like booming entertainment industries and the thriving tech sector contributing to the high cost of living and significant real estate values.
#1. San Francisco
San Francisco, a beacon of culture and innovation in the Golden State, is one of the most expensive cities in California, and arguably in the United States. Home to the iconic Golden Gate Bridge, its real estate market is characterized by:
- Homes range from $200,000 for a studio condo to double-digit millions
- Ongoing demand and value growth
- A year-over-year increase in median sale price and price per square foot
These factors highlight the high demand and value of real estate in San Francisco.
The city’s real estate market is as diverse as its culture, offering a range of neighborhoods catering to various lifestyles and preferences, from relaxed areas to luxury districts. The thriving tech industry, a key part of the city’s iconic status, significantly drives the high demand for real estate. When comparing San Francisco to Los Angeles, the lower cost of living in LA can be a major draw.
A significant contributor to the high overall cost of living in California, San Francisco’s housing market remains resilient, exhibiting the following characteristics:
- Minimal vacancies
- Average home prices around $1.2 million
- Expectations of market stability and growth without a forecasted crash
- An average of multiple offers per property indicates high buyer interest.
#2.Los Angeles
Los Angeles, the city of stars, is renowned for its high cost of living. Homes in Los Angeles range from around $400,000 for a two-bedroom condo to nearly $200 million for a one-of-a-kind luxury estate, both significantly exceeding the national average.
Supporting over 200,000 jobs and contributing more than $30 billion to California’s economy, the city’s entertainment industry is indeed booming. Los Angeles offers incentives for the entertainment industry, such as no-charge use of city properties for filming and coordination of filming permits, along with California’s statewide tax credit program.
These factors, combined with the city’s iconic status and high demand for housing, contribute to Los Angeles’s high cost of living and its reputation as one of the most expensive cities in California. Despite this, it’s often considered one of the best cities in California to live in.
#3. San Jose
Being the heart of Silicon Valley, San Jose hosts over 2,500 high-tech companies and approximately 90,000 jobs. A city that thrives on innovation, it boasts proximity to renowned educational institutions like Stanford University. Common areas of expertise for residents include science, engineering, technology, and math.
The bustling downtown area of San Jose is a hub of high-rise housing and businesses, while its northern part hosts significant technology firms. This balanced mix of work and play contributes to the city’s high cost of living.
San Jose also enjoys over 300 days of sunshine each year and offers an array of amenities like cultural venues, parks, trails, and sports events, enhancing its quality of life. These factors inevitably contribute to the city’s high cost of living and the average home price of over $1.2 million.
#4. Beverly Hills
Synonymous with luxury and opulence, Beverly Hills—one of Los Angeles’s top suburbs—consistently ranks as one of the most expensive cities in California. This reputation is fueled not only by its lavish estates but also by its high-end shopping and fine dining experiences.
Rodeo Drive represents the pinnacle of upscale shopping in Beverly Hills, featuring over a hundred high-end labels. Some notable landmarks and shopping centers in the area include:
- The Beverly Wilshire Hotel
- Rodeo Drive
- Wilshire Boulevard
- The Beverly Center
These destinations enhance the area’s high-end shopping allure, extending the array of luxury shopping options. Condos in Beverly Hills typically range from $1 million to $8 million or more. Beverly Hills luxury homes are priced from $2 million to over $25 million, with often 10 or more homes listed for over $50 million at any given time.
The culture of luxury extends to its dining scene, with Michelin-starred restaurants like Maude and CUT by Wolfgang Puck catering to clientele seeking a luxurious dining experience. Other dining highlights include the iconic Beverly Hills Hotel’s restaurants and Il Pastaio, popular for its authentic Italian dishes and ambiance. All these factors contribute to its esteemed cost of living.
#5. Santa Barbara
Santa Barbara, renowned for its stunning beaches and desirable coastal lifestyle, stands out as another of California’s most expensive cities. As the county seat of Santa Barbara County, where median home prices hover around $2 million, the city’s attractive coastal lifestyle is further enhanced by miles of sunny beaches, fueling high demand for housing and, in turn, high housing prices.
Each of Santa Barbara’s beaches, including Arroyo Burro Beach, Butterfly Beach, East Beach, Goleta Beach Park, and Leadbetter Beach, offers unique settings for beach-goers, with a variety of activities such as beach play, kayaking, surfing, and horseback riding.
The diverse range of beach-related activities, including volleyball courts and kayaking, adds to the city’s allure and its premium cost of living.