Is Living in San Diego Expensive? A Cost Breakdown

San Diego, California, is known for its appealing climate, beaches, and vibrant cultural scene, making it a sought-after place to live. Understanding the financial implications of residing in this Southern California city is important for prospective residents. This article provides a clear, objective overview of the various costs associated with living in San Diego.

Overall Cost of Living

The cost of living in San Diego is approximately 45% to 50% above the U.S. average, largely driven by housing expenses. While expensive, San Diego’s overall cost of living is slightly lower than the California state average, by about 3%. This positions the city as a high-cost area within the United States.

Major Expense Categories

Housing

Housing represents the most substantial expense for residents in San Diego. As of August 2025, the average monthly rent for a studio apartment is around $2,022, while a one-bedroom apartment averages $2,372. For those needing more space, a two-bedroom apartment typically costs about $2,968 per month. The median home price in San Diego is approximately $1,113,702, reflecting a significantly higher cost than the national average. Location within the city heavily influences these figures, with coastal and downtown areas commanding higher prices.

Transportation

Transportation costs also contribute significantly to the overall budget. The average monthly transportation expense in San Diego can be around $443, which is 41% higher than the national average. Gasoline prices in the region are consistently higher than the national average, often exceeding $4.90 per gallon. Car insurance rates in San Diego average approximately $1,536 annually, slightly more than the national average. Public transportation options, including the Metropolitan Transit System (MTS) buses and trolleys, offer a monthly pass for around $72, providing a more economical alternative to car ownership for some.

Food

Food expenses in San Diego are also above the national average, with groceries being about 11% pricier. A single person can expect to spend approximately $277 to $390 per month on groceries. Dining out also adds to food costs, with an inexpensive meal potentially costing around $15 and a mid-range restaurant meal for two averaging $36. These figures suggest that budgeting for food requires careful consideration, whether cooking at home or enjoying the city’s culinary scene.

Utilities

Utility costs in San Diego are generally higher than the national average, specifically around 39% to 42% more. The average monthly electric bill in San Diego ranges from $160 to $351, depending on usage and home size. Natural gas bills averaged about $96 in January 2024, though these can fluctuate based on seasonal demand. Residents can anticipate spending roughly $68 per month for internet services. Water, sewer, and trash services add to these recurring expenses, contributing to the overall utility burden.

Healthcare

Healthcare expenses in San Diego are approximately 2% higher than the national average. While insurance premiums vary, out-of-pocket costs for common services reflect this slightly elevated regional average.

Miscellaneous and Leisure

Miscellaneous and leisure activities also factor into the cost of living. Non-essential expenses like entertainment and personal care items are about 14% pricier in San Diego compared to the U.S. average. Budgeting an additional $150 to $300 per month for dining out, entertainment, and personal care items is a reasonable estimate.

Income and Earning Potential

The average annual salary in San Diego is approximately $69,845, while the median annual salary is around $73,080. For an individual to live comfortably, an annual salary ranging from $80,000 to $122,000 before taxes is often suggested. San Diego’s economy offers competitive salaries in various sectors, with industries such as management, legal, and healthcare practitioners often commanding higher wages (e.g., average hourly earnings reaching $81.36, $74.35, and $65.08, respectively). Diverse job markets in technology, real estate, and professional services also attract talent. While the cost of living is elevated, opportunities for robust income generation exist to support a comfortable lifestyle.

Local Tax Landscape

California has a progressive state income tax system, with rates ranging from 1% to 12.3%. San Diego County residents are also subject to sales tax on most goods and services. The combined sales tax rate in San Diego is 7.75%, which includes statewide and local district taxes, adding to the cost of everyday purchases. For homeowners, property taxes are collected at the county level, with California having an effective average property tax rate of 0.68%. These various taxes collectively contribute to the total financial outlay for individuals living in San Diego.