You might not be surprised to learn that San Diego has been named the most expensive place to live in the United States, according to a U.S. News & World Report ranking for 2023-2024.
San Diego has always been an expensive city, but it just recently became officially the most expensive, according to the city’s median gross rent and annual housing costs for mortgage-paying homeowners which is the data that was used to determine its unaffordability.
Another piece of news that also doesn’t come as a shock is that Los Angeles came in second place.
San Diego’s median home price surpassed $1 million for the first time in August, which is nearly $650,000 more than the national average, according to some estimates. Additionally, San Diego residents have to pay for additional fees, such as homeowners association dues or apartment complex maintenance costs, which contribute to the city’s unaffordability.
Los Angeles County also experienced a record-breaking median home price of over $900,000 in September.
Despite the high cost of living, many San Diego residents are willing to pay elevated prices due to other aspects of the region that make it an ideal place to live. Some San Diegans refer to the cost-of-living differences as a “sunshine tax.”
The inflation rate nationwide remains a persistent problem for federal officials, and San Diego residents seem to have been feeling it even more. The U.S. Bureau of Labor Statistics estimated that San Diego exceeded the year-to-year national rate of inflation, which was around 3.7% in September. Over the last 12 months, prices in the San Diego area advanced about 4.7% overall.
Components contributing to the increase included shelter, which was up 8.4 percent during that period.
Housing costs have been one of the most pressing issues facing elected officials, with prices skyrocketing for both buyers and renters due to a continued lack of available units to meet the demand in the region. Rent has risen in the region by about 8.8% between September 2022 and September 2023, while the average price for a single-family home has risen by about 10.1% during that time.
In addition to housing costs, San Diego residents have also experienced significant increases in electricity costs, which have jumped by about 16.2% over the last year. Dining out, gasoline, medical care, and alcoholic beverages have also seen increases of 5.8%, 5%, 2.5%, and 2.1%, respectively.
However, some price categories have seen a decrease over the last year, including utility gas services (-11.4%), used vehicles (-7.7%), fruits and vegetables (-5.8%), “durable” items purchased by consumers (-3%), and products in the meat, poultry, fish, and eggs food group (-2.7%).
Overall, the inflation rate in the region has fallen compared to the past two years. In September 2022, the annual inflation rate was estimated to be about 8.5%, while the year prior, the rate was estimated to be about 6.5%.
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Laura is a travel fanatic who loves seeing and doing new things. She lives in Ventura, CA, and spends a lot of time exploring California’s cities, beaches, and national parks.