An Overview of Cost of Living in Pasadena, CA
Are you thinking about relocating, but curious about the potential cost of living in Pasadena? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Pasadena stands at 191, making it 91% 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.
If you prioritize affordability when seeking a new place to live, Pasadena may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Pasadena falls into this category, which may not align with your preferences for a budget-friendly living environment.
Housing costs are a major factor in the Pasadena cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 268.1% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.
The things you purchase regularly, like clothes, haircuts, movie tickets and gym memberships, can make a big dent in your budget and make up 33% of the cost of living index. Unfortunately in Pasadena, these items will cost you 16.2% more than what's considered the norm, making it a more expensive place to call home.
The relentless increase in grocery prices is a noteworthy trend. In the last two years, grocery costs have experienced an upward trajectory of over 10%. Unfortunately, Pasadena is no exception, where grocery prices are 12.2% above the national average.
What Do Locals Say About the Cost of Living in Pasadena?
When it comes to knowing a city, its residents are the experts. We conducted a survey with 10 locals to understand their opinions on the cost of living in Pasadena. The results indicated that 20% found it reasonably priced with decreasing prices of goods and services, while 80% viewed it as quite expensive, with increasing prices.
Is Pasadena Affordable?
Wondering if Pasadena is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Pasadena, for example, the median home price is 345.1% higher than what folks pay nationally, and monthly rent is 88.3% higher than the usual rates. Plus, income levels matter too, with Pasadena boasting a median household income of $85,129, which is 53.9% higher than the national average.
What Factors can Influence the Cost of Living in Pasadena?
Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Pasadena, the baseline sales tax rate begins at 7.25%, and income tax rates start at 1%.
Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.
Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Pasadena, the transportation index is 24.3% higher than the national average.
Where is the Data From?
The Pasadena cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.
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