Is Sacramento Expensive to Live In?

Sacramento, California, a prominent city, often prompts questions regarding its affordability. This article provides a comprehensive overview of the cost of living within the city, examining various expenditure categories that impact household budgets.

Overall Cost of Living in Sacramento

The cost of living in Sacramento is approximately 29% higher than the national average, presenting a higher financial commitment for residents. However, when compared to the broader state of California, Sacramento offers a relatively more affordable option, with its cost of living estimated to be about 14% lower than the California state average.

A cost of living index, where 100 represents the national average, shows Sacramento at 127.2. This means the total cost of necessities, including housing, food, and transportation, is 27.2% higher than the U.S. average. This positions Sacramento as a moderately expensive city nationally, but more affordable than California’s most expensive urban centers.

Sacramento Housing Market

Sacramento’s housing market reflects California’s trend of elevated costs. The average monthly rent is around $1,916. A one-bedroom apartment ranges from $1,376 to $1,770 per month, and a two-bedroom from $1,739 to $2,091. Houses for rent average about $2,419 monthly.

For homeownership, the median listing home price in Sacramento was approximately $483,500 in July 2025, with the median sold price around $497,000. The market is competitive, with homes often receiving multiple offers and selling within 26 to 42 days.

Though the market showed slight softening in early 2025, prices have generally increased. Neighborhoods vary significantly; East Sacramento has median listing prices around $837,000, while East del Paso Heights offers options at a median of $310,000. The median price per square foot was approximately $326 in July 2025.

Daily Living Expenses

Beyond housing, utility costs are about 74% higher than the national average. A basic utility package for an apartment, including electricity, gas, water, internet, and trash, can range from $350 to $370 per month. The average monthly electric bill is around $150, while water and gas average $78 and $45 respectively.

Grocery expenses are approximately 7% higher than the national average. For a single adult, annual food expenses might be around $4,623, while a household with two working adults and two children could budget about $13,587 annually. A loaf of bread costs about $4.08, a gallon of milk $4.93, and a dozen eggs around $5.01.

Transportation costs are between 44.2% and 52% above the national average. Gasoline prices are around $4.51 to $4.67 per gallon. For public transportation, a basic one-way fare for buses and light rail is $2.50, with a daily pass costing $7 and a monthly pass at $100. Car ownership is often necessary due to the city’s layout.

Healthcare costs are slightly higher than the national average, by about 2.8% to 6%. An optometry check-up averages $173.55, and a dentist appointment costs about $121.82. For health insurance, a single individual might pay an average of $480 per month for private coverage, with a family of four paying around $1,152 per month for premiums.

Factors Influencing Local Costs

Several factors contribute to Sacramento’s cost of living. Its proximity to the higher-cost San Francisco Bay Area plays a significant role. Individuals seeking more affordable housing migrate to Sacramento, and this increased demand from Bay Area residents influences housing prices and general expenses.

Sacramento’s sustained economic growth and expanding job market also exert upward pressure on living expenses. The city has seen increased job opportunities across sectors like government, healthcare, and technology. This robust job market, coupled with population growth, leads to heightened demand for housing, goods, and services, contributing to rising prices.

Continuous population growth further exacerbates the demand for housing and essential services. As more people move into the area, housing and resource supply struggles to keep pace, increasing competition among residents. This heightened demand directly influences rental rates and home purchase prices. Local market dynamics, including historic charm and new development, also shape the cost structure, with specific neighborhoods experiencing varying demand and price appreciation.