Why is California in a DOOM LOOP? Because the cheapest place to live is expensive in comparison to the rest of the nation.
“The pain: The cheapest place to live in California – the Central Valley’s Hanford – is still more expensive than 295 metropolitan areas across the US.
The source: My trusty spreadsheet reviewed the annual “price parity” report from the US Bureau of Economic Analysis. It gives us a snapshot of relative differences in the cost of living among 384 metropolitan areas across the nation in 2023 – including 26 from California. This inflation math is based on both price and spending swings, and is part of the Federal Reserve’s favorite inflation gauge – the “PCE” or Personal Consumption Expenditures rate.”
You have to love California to live here. But, it is very expensive.
Where is California’s cheapest place to live?
The cheapest US metro? Pine Bluff, Arkansas
By Jonathan Lansner, Orange County Register, 12/17/24 https://www.pressenterprise.com/2024/12/17/where-is-californias-cheapest-place-to-live/?utm_email=748C044F85E504D9655355A755&lctg=748C044F85E504D9655355A755&active=yesD&utm_source=listrak&utm_medium=email&utm_term=https%3a%2f%2fwww.pressenterprise.com%2f2024%2f12%2f17%2fwhere-is-californias-cheapest-place-to-live%2f&utm_campaign=scng-pe-localist-eve&utm_content=curated
“How expensive?” tracks measurements of California’s totally unaffordable housing market.
The pain: The cheapest place to live in California – the Central Valley’s Hanford – is still more expensive than 295 metropolitan areas across the US.
The source: My trusty spreadsheet reviewed the annual “price parity” report from the US Bureau of Economic Analysis. It gives us a snapshot of relative differences in the cost of living among 384 metropolitan areas across the nation in 2023 – including 26 from California. This inflation math is based on both price and spending swings, and is part of the Federal Reserve’s favorite inflation gauge – the “PCE” or Personal Consumption Expenditures rate.
The pinch
Hanford was California’s most affordable spot because its cost of living was 1.6% below the national norm — and it still ranked 89th highest nationally.
The cost savings in Hanford are housing expenses, which run 31% below the typical US metro, by this math. Its utility prices are 39% higher.
Pressure points
The next nine cheapest California places to live are a decidedly inland and central collection of less-populated metros. Clearly, these farm towns offer some Golden State cost relief.
Merced: Costs ran 0.5% below the typical national expenses (80th highest among the 384 metros) with housing 23% below US norms, but utilities 43% higher.
El Centro: 0.1% above typical (No. 76) – housing 22% below US, utilities 37% higher.
Visalia: 1.3% above (No. 65) – housing 17% below US, utilities 41% higher.
Bakersfield: 2.2% above (No. 59) – housing 12% below US, utilities 43% higher.
Redding: 2.8% above (No. 53) – housing 10% below US, utilities 42% higher.
Madera: 2.9% above (No. 52) – housing 9% below US, utilities 44% higher.
Yuba City: 3.6% above (No. 43) – housing 5% below US, utilities 45% higher.
Fresno: 4.0% above (No. 42) – housing 4% below US, utilities 44% higher.
Chico: 4.6% above (No. 37) – housing 1% above US, utilities 47% higher.
Flip side
Want to find a cost of living bargain nationally? Get away from the big cities.
The cheapest US metro is Pine Bluff, Arkansas, where expenses run 19.7% below average. Its housing is 61% more affordable than the norm, and utilities 18% lower.
This same math tells us that living in rural America costs 11.8% less than national norms, with housing 41% cheaper and utilities 11% lower.
Painful reality
Of course, California had the nation’s most expensive market.
San Francisco living costs 18.2% more than the norm, with its housing double typical US spending, with utilities 58% higher.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]Popular affordable-housing stories from 2024 …
- No. 1: It takes $349,200 income to buy an Orange County home, 3.5 times the US salary
- No. 2: LA’s latest homeless housing project, at nearly $600K a unit, opens in Skid Row
- No. 3: 20 least-affordable US cities to buy a home are all in California
- No. 4: California’s down payment assistance lottery reopens for first-time homebuyers
- No. 5: California has 13 of the most unaffordable small US cities
- No. 6: Huntington Beach housing development at former Magnolia Tank Farm up for approval again
- No. 7: LA Mayor Bass wants affordable housing. But these low-income tenants say at their expense
- No. 8: See where rents are falling or rising in LA, Inland Empire and Orange County
- No. 9: ‘Duplex’ law allowing 4 homes on a lot struck down for California’s charter cities
- No. 10: You need a $73,000 pay raise to buy Southern California’s median-priced home
