Price Of Dwelling In San Francisco

San Francisco is a world-class cultural and financial center and home to some of the world’s most well-known technology companies. Also, the cost of living there is notoriously high, which may be one reason the city’s population has declined in recent years. According to US Census data, San Francisco’s population shrank by about 7.5 percent between 2020 and 2022. When considering a move to San Francisco, it’s important to know what to expect. Read on to find out more.
How much does it cost to live in San Francisco?
The typical cost of living in San Francisco is not for the faint of heart. According to RentCafe, the cost of living in the city is 28 percent more expensive than the average cost of living in California and a whopping 79 percent more than the national average.
Everyday expenses that contribute to San Francisco’s expensive lifestyle include utility bills, which are 32 percent higher than the rest of the country, grocery costs, which are 31 percent higher, and transportation costs, which are 38 percent higher. But it’s housing costs that make up the bulk of most people’s expenses, and those prices will likely shock you, too.
Housing costs in San Francisco
Like most California real estate markets, finding a home in San Francisco is expensive. Whether you’re buying or renting, you can expect to spend a whopping 207 percent more than the national average, according to RentCafe.
If you want to buy a home in San Francisco, you’ll need a large bank account (perhaps backed by one of the many high-paying tech jobs). According to Redfin, the median retail price here in April 2023 was just over $1.33 million. That means half of the homes sold in April actually sold for more than that amount. At around $3,313 a month with RentCafe, renting doesn’t come much cheaper here. These costs far exceed the capabilities of many Americans.
labour market
Although San Francisco is home to many large employers, the city has been hit hard by layoffs in recent years. In 2022, more than 24,000 people were laid off from 166 companies here. The tech industry in particular, including Bay Area-based giants like Twitter, Meta and Alphabet, made headlines last year for their significant downsizing. The coming year looks equally disheartening, with jobs forecast to fall further.
However, the California Department of Employment Development reports that San Francisco County had an unemployment rate of 3.0 percent as of March 2023, which is actually lower than the statewide rate of 3.6 percent during the same period. And for non-tech jobs, the outlook is brighter as both the leisure and hospitality sectors post year-over-year job gains.
In terms of pay, high salaries in the city help offset the high cost of living. According to ZipRecruiter, the median salary in San Francisco as of May 2023 is $94,480. Most salaries in the city range from about $76,000 to $112,000, they say. For comparison, census data shows that the median household income in the United States in 2021 was $70,784.
food costs
According to RentCafe, the cost of groceries in San Francisco is about 31 percent higher than the national average. MIT’s Living Wage Calculator provides a more detailed look at what you can spend on groceries in San Francisco: For a single adult living in the city, the annual cost of groceries comes out to about $4,686, while the cost of an adult would be approximately $4,686. A child would cost $6,916. The grocery bill for two adults with one child would be $10,702 per year.
Bankrate’s Cost of Living Calculator can show you the cost of certain groceries in San Francisco compared to another city. For example, milk costs about $3.38, eggs $3.83, and bread $5.04.
transport
San Francisco has a well-developed public transportation system with buses, trains, ferries and the city’s famous cable cars. BART (Bay Area Rapid Transit) fares are based on distance travelled. An adult single fare on Muni, the city’s bus and subway system, costs $2.50 and a monthly pass is $81.
If you prefer to drive, be aware that gasoline prices in California are quite high. According to the AAA, the average cost of a gallon of gasoline in the city was $4.79 in mid-May, compared to $3.53 nationwide.
Local and State Taxes
- VAT: Sales tax in San Francisco is set by the state; it is currently at 8.625 percent.
- income tax: San Francisco residents pay a flat 1.50 percent city income tax and the California state income tax, which is based on annual income and ranges from 1 percent for those on low incomes to 13.3 percent for those whose annual salary is over $1 million .
- wealth tax: San Francisco property tax rates are calculated based on the appraised value of a property. For the 2022-2023 tax year, the tax rate is 1.179 percent.
Move to San Francisco
When you’re in a challenging real estate market like San Francisco, it’s even more important to have an experienced local real estate agent by your side. A real estate agent who knows the city well can help you find a neighborhood that fits your budget and lifestyle, and ease your transition to a new, expensive city. Before you make the move, carefully examine your budget and determine if living in expensive San Francisco is worth your finances.
FAQs
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What salary do you need to live in San Francisco?
Both housing costs and ongoing expenses are high here. Therefore, analyze your current income to find out how much you can afford for monthly housing expenses. Experts often recommend the 28/36 rule, which states that no more than 28 percent of your monthly income should be devoted to housing and no more than 36 percent to total debt. According to Redfin data, the average home price here is a whopping $1.33 million. So take high home prices into account when planning your budget. According to the US Census Bureau, the median household income in San Francisco was US$126,187 in 2021.
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How expensive is it to live in San Francisco?
Very. According to RentCafe, the cost of living in San Francisco is 79 percent higher than the national average. Everything from housing to utilities and health care to food is significantly more expensive here than anywhere in the country. (Although salaries tend to be higher here too, so there’s a certain balance.)
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How does the cost of living compare to California?
According to RentCafe, the cost of living in San Francisco is 28 percent higher than the state average in California. In particular, housing construction is 52 percent higher than the rest of the state. Bankrate’s Cost of Living Calculator shows that the cost of living in San Francisco is 18.65 percent higher than Los Angeles and 24.34 percent higher than San Diego.