An Overview of Cost of Living in Malibu, CA
Are you thinking about relocating, but curious about the potential cost of living in Malibu? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Malibu stands at 334, making it 234% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.
The cost of living in Malibu is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Malibu falls into this category, which may not be suitable for those seeking an economically favorable living environment.
Housing costs are a very significant part of the Malibu cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 744.7% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.
Recurring essentials like haircuts, toothpaste, and entertainment, from movies to gym sessions, can really add up in your budget and make up 33% of the cost of living index. In Malibu, you you will have to spend 16.2% more than average when compared to the typical prices for these items, making it a more expensive place to live.
The surge in grocery costs is indeed alarming, especially when groceries make up a large portion of your monthly expenditures. Over the past two years, there has been an inflation of over 10% in grocery prices. Unfortunately, Malibu does not fare better, with grocery expenses coming in at 12.2% higher than the national average.
What Do Locals Say About the Cost of Living in Malibu?
The real experts on a city are its residents. That's why we reached out to 13 locals to get their views on the cost of living in Malibu. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 54% found it budget-friendly with decreasing prices, while 46% said it's simply not affordable as prices have continued to rise.
Is Malibu Affordable?
Is Malibu affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Malibu, the median home price is 982.8% higher than the national average and monthly rent prices are 189% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Malibu boasting a median household income of $162,716, 194.1% higher than the national average.
What Factors can Influence the Cost of Living in Malibu?
Subsidies: Certain cities or states may institute government subsidies or assistance programs designed to alleviate the financial burdens associated with the cost of living for their residents. These programs encompass a variety of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Areas that provide fewer subsidies may see an uptick in their overall cost of living.
Utilities: Similar to the prices of any other goods or services, utility expenditures can exhibit substantial variability, influenced by factors such as climate, energy sources accessibility, geographical location and state regulations. Costs related to electricity, water, heating, and waste disposal can fluctuate, whether higher or lower, contingent on the city or state. In Malibu, the utilities index is 12.4% higher than the national average.
Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In Malibu, healthcare costs are 7.9% higher than the national average.
Where is the Data From?
The Malibu cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.
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