Average Cost of living in San Diego, CA

San Diego, known for its stunning beaches, vibrant culture, and pleasant climate, is also recognized for its high cost of living. The cost of living in San Diego is a crucial consideration for potential residents and current inhabitants alike. 

With its desirability comes a higher price tag, making it essential to understand the various components that contribute to the overall cost of living in this beautiful city.

Several factors influence the cost of living in San Diego, including housing, utilities, food, transportation, healthcare, and entertainment. 

Each of these elements varies in cost and can significantly impact an individual’s or family’s budget. In this article, we will delve into these components to provide a comprehensive understanding of what it costs to live in San Diego.

Housing Costs

Housing costs in San Diego, CA, are among the highest in the nation, reflecting the city’s desirability and competitive real estate market. As of mid-2024, the median listing price for homes in San Diego is approximately $995,000, with the median price per square foot at $748. 

Homes in desirable neighborhoods such as Rancho Bernardo, Carmel Valley, and City Heights often see even higher prices. The competitive market means that many homes sell quickly and often above the listing price, with an average sale-to-list price ratio close to 100%.

The rental market in San Diego is equally demanding, with the average rent for a one-bedroom apartment around $2,414 and a two-bedroom apartment costing about $3,262 per month. Houses for rent can go even higher, averaging $3,995 per month. 

These high costs are driven by limited housing inventory and strong demand, resulting in a fast-paced market where homes often sell within 30 days of listing. 

This tight inventory means buyers and renters must act quickly and be prepared for potential bidding wars, further driving up prices.

Utilities and Internet

In San Diego, CA, utility costs significantly impact the overall cost of living. On average, residents spend about $312 per month on electricity alone, which equates to approximately $3,744 annually. 

This figure is notably higher than the national average, attributed to the high electricity rates in the region, which are around 39 cents per kilowatt-hour. 

This rate is significantly above the California average of 34.82 cents per kilowatt-hour and more than double the national average of 17 cents per kilowatt-hour. 

These high costs are a result of the region’s extensive reliance on imported energy and the expenses associated with maintaining the local power grid.

Internet services in San Diego offer various options with different price points and speeds. Providers like AT&T and Cox Communications dominate the market, with AT&T offering fiber internet with speeds up to 5 Gbps for around $55 per month. 

Cox, on the other hand, provides cable internet services starting at $50 per month for 100 Mbps speeds. Other providers such as Starlink offer satellite internet, which is a viable option in more rural areas, with plans starting at $120 per month for speeds ranging from 50 to 220 Mbps. 

The average cost for a reliable internet connection in San Diego is approximately $60 per month, which can vary based on the provider and the specific service plan chosen.

Food and Groceries

In San Diego, CA, food and grocery costs are significantly higher than the national average. For example, the price of a dozen eggs can range from $2.00 to $6.99, while a gallon of milk typically costs around $5.07. 

Fresh produce is also on the higher end, with apples costing between $0.91 and $3.99 per pound and tomatoes averaging about $2.20 per pound. Additionally, staples like boneless chicken breast are priced at approximately $6.18 per pound. 

Dining out in San Diego is similarly expensive, with a basic lunchtime menu costing around $28 and a combo meal at a fast-food restaurant about $14.

These elevated prices extend to other grocery items as well. For instance, local cheese averages $6.53 per pound, and a loaf of bread can cost about $2.83. 

Wine and beer are also pricey, with a mid-range bottle of wine costing approximately $15.00 and a domestic beer around $2.01 for a 0.5-liter bottle. 

These costs contribute to the overall high cost of living in San Diego, making it essential for residents to budget carefully for their food and grocery expenses.

Healthcare

San Diego offers a robust healthcare system with numerous options for residents and visitors. The city is home to renowned healthcare institutions like Scripps Health, which provides a wide range of services across multiple locations. 

Scripps Health is noted for its excellence in areas such as heart care and orthopedics, and it offers comprehensive care through its hospitals, specialty centers, urgent care facilities, and walk-in clinics. 

The organization is well-integrated, allowing patients to easily access primary care physicians, specialists, and state-of-the-art facilities through its MyScripps patient portal. 

This portal enables online scheduling, bill payment, test result viewing, and prescription refills, making healthcare management convenient and efficient.

For those seeking affordable healthcare options, Covered California is the state’s health insurance marketplace that connects residents with various insurance plans, including Medi-Cal for low-income individuals and families. 

Covered California offers multiple tiers of plans—Bronze, Silver, Gold, and Platinum—each varying in premiums and out-of-pocket costs to cater to different financial needs. 

Additionally, San Diego County’s expanded Medi-Cal coverage ensures that more residents have access to essential health services regardless of immigration status. 

This includes comprehensive coverage for adults aged 26-49 and free or low-cost healthcare for children under 19.

Taxes

San Diego’s tax landscape includes several key components, such as sales tax, property tax, and state income tax. As of 2024, the combined sales tax rate in San Diego is 7.75%, which includes the California state sales tax of 6%, plus local district taxes. 

This rate is relatively low compared to other major California cities like Los Angeles (9.5%) and San Francisco (8.625%). Property taxes in San Diego are calculated at an average effective rate of 0.75% of a home’s assessed value, which is relatively moderate compared to other states. 

For instance, the average property tax on a $500,000 home would be approximately $3,750 annually.

Income taxes in California are progressive, with rates ranging from 1% to 12.3% based on income levels, with an additional 1% surcharge on incomes over $1 million. 

This makes California’s top marginal income tax rate the highest in the United States, effectively reaching 13.3% for the highest earners. It’s important for residents and newcomers to be aware of these tax implications as they significantly impact overall living costs. 

For business owners, understanding the requirements for sales tax collection is crucial, as economic or physical presence in the state can obligate a business to collect and remit sales taxes.

Comparison with Other Cities

When comparing San Diego to other major cities, it’s evident that while the cost of living is high, it remains more affordable than some of its California counterparts. 

For instance, housing in San Diego is approximately 8.8% less expensive than in Los Angeles, and healthcare costs are marginally lower by about 1.1%. Compared to Palo Alto, San Diego’s housing costs are significantly lower, with Palo Alto’s housing being 309.4% more expensive. 

However, San Diego still ranks as one of the most expensive cities in the United States, with a median monthly cost of living around $3,427, placing it higher than cities like Miami, Tampa, and Colorado Springs.

On a broader scale, San Diego’s cost of living is high even when compared to cities outside of California. For example, living expenses in San Diego are considerably higher than in places like Raleigh, North Carolina, and Omaha, Nebraska. 

Despite this, San Diego offers a unique combination of coastal living, cultural amenities, and favorable weather that many residents find worth the extra cost. 

Compared to Irvine, CA, another high-cost area, San Diego is slightly more affordable but both cities share high expenses in terms of housing and general living costs.

Read more: Reasons you should move to Fort Collins

Conclusion

In summary, the cost of living in San Diego is influenced by various factors, including housing, utilities, food, transportation, healthcare, and entertainment. 

Understanding these costs is vital for residents and potential movers to make informed financial decisions. With careful planning and budgeting, it’s possible to enjoy the high quality of life that San Diego offers while managing living expenses effectively.

Tips for managing living expenses in San Diego include exploring affordable housing options, utilizing public transportation, and taking advantage of free or low-cost entertainment and recreational activities.

By being mindful of these costs and planning accordingly, residents can make the most of their time in this beautiful coastal city.

For those moving to San Diego, hiring residential movers in San Diego can greatly ease the transition. 

Professional movers not only transport your belongings but also provide valuable assistance in navigating the city’s transportation system and settling into your new home. 

Moving companies often offer city orientation services, helping newcomers familiarize themselves with the local transit routes and amenities. 

Whether you choose to rely on public transportation or plan to drive, having your move managed by professionals can ensure a smoother and more efficient relocation experience.

Written by Billy Guteng. August 16, 2024

Billy is a content writer for Kukun. He was born in France, and has lived in multiple cities around the world ever since. He loves art, design and architecture as well as construction and real estate.