In this article, we will be taking a look at the top 5 most expensive cities to live in California. If you wish to see a detailed analysis of Silicon Valley, head straight to the Top 20 Most Expensive Cities To Live In California.
5. Santa Barbara
IM Score: 16
Santa Barbara, an expensive city, is primarily driven by its high housing costs. In August 2023, the median home value was $2 million, with a 23.7% YoY increase. Its prime location, beautiful beaches, and demand from wealthy residents and tourists contribute to the high housing expenses. The overall cost of living in Santa Barbara exceeds the national average due to housing. Despite offering diverse amenities such as dining, recreation, and quality schools, they come at a premium. The city’s Mediterranean climate and natural beauty make it a popular tourist destination, vital to its economy.
4. Palo Alto
IM Score: 17
Palo Alto stands out as a highly costly place to live. Housing is a significant factor, with a median home price of $3.5 million, making it California’s sixth most expensive city. Rent averages around $3,600, while the median household income is $210,000. The city’s population exceeds 60,000 residents and is renowned for hosting Stanford University.
3. Newport Beach
IM Score: 18
Newport Beach, one of the wealthiest U.S. cities, has a high cost of living driven by soaring housing expenses. As of July 2023, the median home value was $4.9 million, up 23% YoY. The city’s prime location, beautiful beaches, and demand from affluent residents and tourists fuel these costs. While other living expenses are above the national average, housing costs still overshadow them.
2. San Francisco
IM Score: 19
San Francisco is among the most expensive cities to live in California. Housing costs are a significant factor, with a median home value of $1.3 million and median rent close to $4,500. The housing market is highly competitive, with homes typically selling in 21 days. The median rent in the city is $3,700, while the median household income is $112,376. San Francisco’s diverse culture, iconic landmarks, and thriving tech industry attract residents. Despite San Francisco having a relatively affordable housing than other cities on the list, we’ve made an exception for it in the list since its other expenses are significant enough to impact savings for buying a house.
1. Beverly Hills
IM Score: 20
Beverly Hills stands seventeenth among the top expensive cities to live in California, with a median home price of $3.02 million and expenses soaring to 570% above the national average. The housing market is competitive, with homes often selling within 60 days. Rent averages $9,183 monthly, while the median household income is $100,000. With over 34,000 residents, Beverly Hills is famous for its luxurious lifestyle, upscale shopping, and celebrity sightings.
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