What makes SD so expensive? (San Diego: lease, health insurance, home)

[AnotherBravesFan]

I lived and worked in San Diego for over 20 years and recently left for greener pastures. While housing is the big factor in the high cost of living, San Diego has also ranked #1 in gasoline prices and utility rates in national surveys. Granted, most people don't have to use much AC or heat, but what you pay for what little you use is high. Homeowners' insurance and auto insurance are also expensive. And don't forget taxes...sales tax at 8.75% & a 9.3% marginal income tax rate. Both may go higher with the current budget "crisis" in Sacramento. And if you can afford a single family home for $400,000... you'll pay over $4,000/year in property taxes. As others have noted, many people are willing to make financial sacrifices to live in San Diego. When the quality of life didn't support what I had to pay to live there, I left.

[NYSD1995]

Originally Posted by Pom

I just looked in the Washington Post real estate section, and there were no single family houses for sale within 30 miles of the city under $600k. Houses in the distant burgs were around $400k. So my question still is what makes people think SD is more expensive than other large metro areas?

If I moved to the DC metro I could probably bank a 30% pay increase with no additional responsibilities. It would also open up career paths that do not exist here. San Diego has DC housing costs but midwestern salaries.

[JMadison]

Originally Posted by Pom

I see numerous posts about how insanely expensive things are there, and I was wondering what, exactly, people are referring to. I realize housing is costly, but surely not so much more than other large metropolitan areas.

Off the top of my head that's the #1 thing, home prices. At least 4X the national average. So that means you nead 8x the national average income as an individual to own a home there.

Mediteranian climate probably plays into it big time, as well as a relatively lesser crime rate than say L.A. to the north.

[Charles]

Originally Posted by AnotherBravesFan

I lived and worked in San Diego for over 20 years and recently left for greener pastures. While housing is the big factor in the high cost of living, San Diego has also ranked #1 in gasoline prices and utility rates in national surveys. Granted, most people don't have to use much AC or heat, but what you pay for what little you use is high. Homeowners' insurance and auto insurance are also expensive. And don't forget taxes...sales tax at 8.75% & a 9.3% marginal income tax rate. Both may go higher with the current budget "crisis" in Sacramento. And if you can afford a single family home for $400,000... you'll pay over $4,000/year in property taxes. As others have noted, many people are willing to make financial sacrifices to live in San Diego. When the quality of life didn't support what I had to pay to live there, I left.

I'm probably not too far from you here in Huntsville and you're right, going from San Diego to Huntsville or Madison County is going from one extreme to another. However, I got a feeling that housing prices in California (SD, OC, LA) will continue go down, maybe not to the $120/sqft level for nice neighborhoods in Huntsville but maybe $150-$200/sqft, or a 2000 sqft home in a decent neighborhood in the $350K-$400K range. The median incomes and Alt-A/Option Arm resets pretty much point in that direction. In the past couple years per square foot housing price ratios have gone from maybe a 3:1 or 4:1 ratio to maybe a 3:2 ratio.

[10,000Lakes]

Originally Posted by sdlife619

It simply comes down to housing, and the fact that wages don't support the high cost of living in California.

Supply and demand is one thing, but if developers are only building expensive luxury condo's and homes that range anywhere from 300K to a dinky sized condo to well over 600K for new homes, how are working class or even middle class citizens able to afford to live here? It's almost impossible, unless you are some sort of professional, slightly rich, or move here with a ton of cash on hand.

Even older neighborhoods are expensive to live in, so it's not necessarily always about new housing construction that makes it tough to afford.

if you pick up reality ad's around town, the majority of all homes range are over 350K, some way over that considering you don't get much for your money in SD.

Agreed. Also, to me it seems gas is more expensive. Registration here for your cars is a lot. Many schools you must pay yearly for your child to ride to school etc.. just a lot of things that add up..

[sdlife619]

I also agree, gas prices are always higher in California for no good reason, maybe taxes? But still there is price gouging going on which is not right.

There's a gas station on Fletcher Pkwy heading towards El Cajon, right across the street from Beef N Bun that is always 50 cents to a dollar more than the competition! Gas is almost $4.00 a gallon right now at that station, and I don't understand why the price is so ridiculously high and way more than the gas stations down the street off Navajo Rd.

It's either because of greed or stupidity, why even have your doors open when your gas always cost about a dollar more than everybody else? I can't understand how the place is still open, how is the owner making money?

It's all the little stuff in California that adds up is what makes it tough to survive, and part of reason why people are broke.

[dweej]

Originally Posted by AnotherBravesFan

And don't forget taxes...sales tax at 8.75% & a 9.3% marginal income tax rate. Both may go higher with the current budget "crisis" in Sacramento. .

Income tax rate is already up from this. Posted at the end of August, marginal income tax rate is 9.55%

[randian]

Originally Posted by sdlife619

I also agree, gas prices are always higher in California for no good reason, maybe taxes?

It's true that California has one of the highest gasoline excise taxes in the nation, and it is one of the few that charges both excise and sales tax on gasoline (in effect charging sales tax on excise tax).

Putting that aside, the major driver of gas prices in California is the fact that California requires a special blend of gasoline that is different than that available anywhere else. Refiners, naturally, charge more for special orders. In addition, when there are spot shortages on the California market, those shortages cannot be satisfied by rerouting shipments from another part of the country that might be experiencing an excess of fuel. That causes price volatility and huge upward price swings whenever there is a spot shortage, followed naturally by huge downward swings when the shortage is alleviated or demand abates.

Originally Posted by sdlife619

Gas is almost $4.00 a gallon right now at that station, and I don't understand why the price is so ridiculously high and way more than the gas stations down the street off Navajo Rd.

Not being familiar with the area, I assume Fletcher Parkway is a major thoroughfare and Navajo Road isn't. That's your clue. Ever noticed that gas stations by a freeway are usually more expensive than those 1/2 mile off the freeway? They can charge more because it's convenient.

[Ultrarunner]

Originally Posted by randian

It's true that California has one of the highest gasoline excise taxes in the nation, and it is one of the few that charges both excise and sales tax on gasoline (in effect charging sales tax on excise tax).

Putting that aside, the major driver of gas prices in California is the fact that California requires a special blend of gasoline that is different than that available anywhere else. Refiners, naturally, charge more for special orders. In addition, when there are spot shortages on the California market, those shortages cannot be satisfied by rerouting shipments from another part of the country that might be experiencing an excess of fuel. That causes price volatility and huge upward price swings whenever there is a spot shortage, followed naturally by huge downward swings when the shortage is alleviated or demand abates.


Not being familiar with the area, I assume Fletcher Parkway is a major thoroughfare and Navajo Road isn't. That's your clue. Ever noticed that gas stations by a freeway are usually more expensive than those 1/2 mile off the freeway? They can charge more because it's convenient.

Mostly Politics... CA had some of cheapest gasoline and diesel in the country... Parts of CA the oil just bubbles out of the ground naturally...

Add politics to the equation and you create shortages and high prices

[randian]

Originally Posted by Ultrarunner

Mostly Politics... CA had some of cheapest gasoline and diesel in the country... Parts of CA the oil just bubbles out of the ground naturally...

Too bad there's no way the CA legislature will approve new drilling sites.