What makes San Diego to be one of the most expensive cities?

[dweej]

As I'm reading the OP's post, it seems the question isn't "why is S.D. real estate so expensive?" but rather "what elements of life cost more in S.D., thus making the COL index so much higher?". Most have already touched on the R.E. costs, but there are a couple of other things- you mentioned that taxes are similar in both areas, but I'm not sure if Chicago has all of the various environmental/recycling/use fees and taxes that you'll find in this area (CRV, disposal fees on various automobile items, soon-to-be additional fee per gallon of gas, etc.). It also costs more to transport water to this region, so most people find that they pay more per month on their water bill here than other areas of the country. And with affordable housing/good schools a fair distance from employment centers, you may end up paying more on fuel and vehicle maintenance overall. Besides those things, you probably won't feel much of a difference in terms of cost between the two places. The vibes are totally different, of course, but cost shouldn't be your main sticking point when comparing the two metro areas. Good luck!

[jghall00]

It's mostly the cost of housing. As other posters mentioned, Prop 13 and heavy regulation make new development very expensive here in California. In addition, the lax lending standards of the past decade greatly inflated housing prices beyond any reasonable multiple of income. This is rapidly changing though. Also, grocery stores are unionized and there's no super wal-mart to provide price competition. Those are the primary causes of the high cost of living here.

[dweej]

Originally Posted by jghall00

It's mostly the cost of housing. As other posters mentioned, Prop 13 and heavy regulation make new development very expensive here in California. In addition, the lax lending standards of the past decade greatly inflated housing prices beyond any reasonable multiple of income. This is rapidly changing though. Also, grocery stores are unionized and there's no super wal-mart to provide price competition. Those are the primary causes of the high cost of living here.

The unionized grocery stores do tend to be more expensive...I forgot about that. There are a couple that are non-union, although I don't know how many locations there are: Stater Bros. (which feels, looks like a regular grocery store) and Winco Foods (which feels and looks like a wharehouse, club store, but isn't. You bag your own groceries and it is cheap.). We have both here in Temecula, but I'm not sure about locations closer to the SD metro area. Good luck!

[Sweating in Florida]

Originally Posted by hanna_house

I'm not an expert on the cost of living in SD, but I would imagine a big factor is average cost of housing vs. average salary. One thing you do save on here, that helps with rent being a little more expensive, is low utility bills. Last month we paid $25 for gas and electric together! As for restaurants, it can be expensive to eat out but there is such a huge variety of places to pick from that it's up to the individual how much they want to spend. Groceries don't seem much different than what I was used to in MI. Gas prices are sometimes higher and sometimes lower than in MI. So basically, there are probably more jobs and jobs that pay more in Chicago to help offset housing costs.

$25.00 for gas and electric???? Do you cook, watch TV or have AC on at all. Doesn't it get hot there?

[dweej]

Originally Posted by Sweating in Florida

$25.00 for gas and electric???? Do you cook, watch TV or have AC on at all. Doesn't it get hot there?

It does get hot, but not as much coastally, and certainly not in the winter . When we lived in a small apartment in Oceanside with no air conditioner (not that we didn't use it....we literally didn't have one) and did virtually no cooking whatsoever, that's about how much our bills were. Now that we have three kids and we cook and we live in Temecula which is a lot hotter, our highest electric bill in the summer was about $200 (gas, water, and trash are billed separately). Use, sq. footage, location, etc are naturally going to have a huge affect on your utility bills.

[zango]

I have read several times that the cost of land, permits, materials and labor are all higher in Ca. Everyone has their finger in the pie here. And the end product is a 3/2 craker box priced at $500k. But since the recession hit. You can "steal" it for $450k. Still, the weather is bliss. And many people have extended family in Ca. So they do not leave.

[scratchNsniff]

What are the parameters for figuring the COL for cities? I would say SD and Socal are comparable in cost to most major cities when utilities are factored in. In the Phoenix Metro area, housing is cheaper, yes. A decent house can be rented for $800-$1500. BUT!!! We can spend upwards of $200-$500 ON ELECTRICITY ALONE in the summer months. And what about the heating costs in the snowy wintry cities? Also, when I lived in SoCal, I actually noticed that items might've been slightly LESS expensive in SoCal. I was TV shopping at one point and looked at items in both LA and Phoenix and Phoenix seemed to be slightly more expensive. Socal is right by a major shipping port, you don't have to ship stuff as far as say, Phoenix. So I don't think that it is that much cheaper to live in AZ. Plus, the overall living atmosphere can be dreary, there's lots of sandy beach but no water, and there's is just not much to do in Phoenix other than watch tv and wait to pass away.

[deuterdu]

Originally Posted by Percy82

Hi there!

I'm moving to San Diego in a couple of months, but I wanna do a lot of research to ensure is a successful step.

I've been doing some research and I've found (even in this site) that San Diego is more expensive than Chicago and one of the most expensive US Cities.

What does exactly makes San Diego to be one of the most expensive cities?

I've been checking the groceries on San Diego stores... in Chicago the groceries are more expensive.
Tax in Chicago area greater than San Diego taxes.
Gas prices are lower in the San Diego area.

I know the rent is higher than Chicago, but besides this, what makes San Diego to be expensive.

The US Average cost of living is 100. In San Diego is 145 and in Chicago is 118 (I've found this is this site)

I would like to get a hand on this. How do they set a number as cost of living. What it involves?

I think something that may make San Diego more expensive, is that there is a lot to do, a lot of places to eat outdoors and that stuff... but I need to know this from San Diego people.

What makes San Diego expensive? How much do you pay on bills and groceries? How much do you spend dining out, etc...

Thanks a lot!

3 main things: 1) The weather 2) The beaches 3) Proximity to mountains

[dweej]

Originally Posted by scratchNsniff

What are the parameters for figuring the COL for cities? I would say SD and Socal are comparable in cost to most major cities when utilities are factored in. In the Phoenix Metro area, housing is cheaper, yes. A decent house can be rented for $800-$1500. BUT!!! We can spend upwards of $200-$500 ON ELECTRICITY ALONE in the summer months. And what about the heating costs in the snowy wintry cities? Also, when I lived in SoCal, I actually noticed that items might've been slightly LESS expensive in SoCal. I was TV shopping at one point and looked at items in both LA and Phoenix and Phoenix seemed to be slightly more expensive. Socal is right by a major shipping port, you don't have to ship stuff as far as say, Phoenix. So I don't think that it is that much cheaper to live in AZ. Plus, the overall living atmosphere can be dreary, there's lots of sandy beach but no water, and there's is just not much to do in Phoenix other than watch tv and wait to pass away.

This is also very possible, and quite common, in this area.

[jeena]

I live in a NYC suburb with the highest property taxes in the nation, but I rented a beautiful house in North County last year and the owner told me she had to pay for water and other services, which made her house expenses and property taxes equal to what I pay just in taxes because city services are included in my tax bill.

I feel my 3600 sq. ft. $500,000 home in NY is much more valuable than a comparable $500,000 home in San Diego because I have two floors with separate apartments (and an above ground basement) which would rent at the rate of $1700 per floor, and I have the option to live on one floor or the basement and rent the others, a much better value than a comparable San Diego home at the same price with no basement.

Many restaurants here are much cheaper than San Diego, my cousin who lives in North County was shocked when I told her I get a two scrambled egg, home fries, and toast breakfast for $2.85 in NY. In SD I was paying $6.99 for this same breakfast. McDonald's has higher priced food items in SD than NY, I was surprised.

The food prices in the stores are higher in SD than NY, I kept supermarket hopping in order to find lower prices on my favorite food items, but I soon learned it was a waste of time. The cost of wine is much cheaper in SD than NY, about half price cheaper, I really liked that (lol)!

The price of gas is about the same, we are paying about $2.89 now.

On the surface, it's about the same expense to live in a upper middle class neighborhood in suburban SD or NY, but NY beats SD in the number of income producing properties available that offset the expenses of home ownership, so it's much cheaper to live in NY if you choose to buy a multi-family property.