Is housing the only thing that makes CA expensive? (San Jose: appointed, for sale)

[wth110]

or do taxes play a big role (specifically income tax)?
i would assume things like groceries, utilities, etc are not that overpriced compared to other states so what do you guys think?

[checkup]

Compared to other major cities, other costs are only a bit higher (maybe 10-20%)

Taxes are higher, but the difference varies by which state/city you're comparing too. It's about the same as NYC, higher than Chicago, much higher than Texas/Florida cities

Housing is the main cost, both renting and buying

[oldtrader]

The best way to answer this, is to use a cost of living calculator.

I chose moving from Austin Texas earning $75,000, and San Jose/Sunnyvale Ca as an example and they say it would require 60% higher salary to live in San Jose. They compare quite a number of items cost each place, which will give you an idea of where the difference in costs of living occur.

Cost of Living comparison calculator

[cardinal2007]

Originally Posted by oldtrader

The best way to answer this, is to use a cost of living calculator.

I chose moving from Austin Texas earning $75,000, and San Jose/Sunnyvale Ca as an example and they say it would require 60% higher salary to live in San Jose. They compare quite a number of items cost each place, which will give you an idea of where the difference in costs of living occur.

Cost of Living comparison calculator

I think this cost of living calculator is seriously lacking, I entered the area I grew up in, Northern Virginia/ DC, to compare to San Jose, and it gave prices for housing as 746K vs 764k, I'm not kidding, for 746K in the DC area you would get about 3000sqft, and here you would get maybe 1600sqft? I think that is seriously lacking, while most people may be trying to keep up with the Joneses in the DC area so to speak and will spend some crazy amount on housing to do so, if you're looking to have some minimal level of housing you will find it much easier to achieve in the DC area, if you want to live in a 3bd townhouse or better for example, I imagine you would have to spend at least 500-700k here, depending on town, versus, 300k-500k in the DC area, depending on town. So if you have such a place in DC area and are asking what it would take for salary to keep the same standard of living, this calculator will tell you you need a 6% increase in salary, and you will be very disappointed when you are trying to buy a townhouse say in Sunnyvale, and others are bidding 700k for it. If on the other hand keeping up with the Joneses is your main priority, then I suppose using the median house price is appropriate.

I will say except for the rent the rest does seem more of an apples to apples comparison, I'm not sure on the energy, I think you need a lot less electricity in the summer and winter here, but the electricity costs more. A lot of places don't even have A/C here.

[mysticaltyger]

Originally Posted by andr3wha

or do taxes play a big role (specifically income tax)?
i would assume things like groceries, utilities, etc are not that overpriced compared to other states so what do you guys think?

Housing is not the only thing, but it is the biggest factor. Sales & income taxes are also higher than most places. Utility rates are also higher, but your costs may be the same or lower if you live in the coastal metro areas because of the mild climate. Gas prices are also higher. Food is the same or a little higher than other places.

Southern California is generally a bit cheaper than the Bay Area in terms of sales taxes and overall prices, but incomes in SoCal are also usually lower.

[Tulemutt]

Originally Posted by andr3wha

or do taxes play a big role (specifically income tax)?
i would assume things like groceries, utilities, etc are not that overpriced compared to other states so what do you guys think?

Your question is too vague for such a large state with so much variety. California can be cheap for real estate and taxes depending on where you want to locate and how much/little income you have - and your income source.

[NinaN]

Comparing to Texas...

Wine is cheaper (and better) here!
I find restaurants here much more expensive and not as good.
Taxes (income tax much higher, property tax % lower but offset somewhat by higher home prices)
One thing that annoys me is you have to pay to park anywhere near a state park, even to just take a hike or a picnic
Utilities rate higher for us (we only have PG&E here), but usage is lower due to better weather
Gasoline add about 50 cents per gallon for taxes here

And yes, it's worth it!

[SportyandMisty]

Regulation also has an impact.

For example, milk in California is not fungible with milk from other states -- California regulators have regulated milk in such a way that milk produced/processed in other states can't be imported to California for sale. This makes the price of milk higher in California than it would be if such regulation were not in place.

See CDFA > ANIMAL HEALTH & FOOD SAFETY SERVICES > MILK & DAIRY FOOD SAFETY > Milk Standards

There are many other examples such as gasoline - at the chemical level, gasoline in California is different according to regulations and therefore gasoline from elsewhere in the US cannot be imported to California for sale.

[Charles]

Goods and services COULD be more expensive since real estate is more expensive. The owner of a barber shop for example may be paying higher rent because real estate is more expensive so those costs are passed on to you.

[That's one reason I try to buy some things in low rent districts. A hair cut in Santa Ana is the same as a hair cut in Newport Beach but the NB haircut price includes higher lease/rent overhead and is more expensive.]

[1AngryTaxPayer]

any kind of fuel is much higher here.