F
121%
Overall NAT. AVG.
14%
Goods & Services NAT. AVG.
357%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Berkeley California National
Cost of living221140100
Goods & Services114111100
Groceries117112100
Health care121109100
Housing457196100
Transportation129126100
Utilities134127100

An Overview of Cost of Living in Berkeley, CA

Getting a feel for the cost of living in Berkeley is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Berkeley is 221, which is 121% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

The cost of living in Berkeley 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, Berkeley falls into this category, which may not be suitable for those seeking an economically favorable living environment.

When it comes to the cost of living in Berkeley, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 357.4% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Goods and services make up 33% of the total cost of living index score and are a large part of your everyday expenses. These items could include things like haircuts, salons, toothpaste, shampoo, clothes, movies, bowling, gym memberships or yoga. In Berkeley, you can expect to pay 14.1% more than average for these items, making it a more expensive place to live.

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, Berkeley is no exception, where grocery prices are 17.2% above the national average.

What Do Locals Say About the Cost of Living in Berkeley?

Nobody knows their city better than the people who actually live there. So, we asked 26 local residents how they would rate the cost of living in Berkeley and this is how they responded. 15% of people said that the cost of living was affordable, with prices decreasing, while 85% of people said that the cost of living was very expensive and prices continue to rise.

Is Berkeley Affordable?

Wondering if Berkeley 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 Berkeley, for example, the median home price is 473.6% higher than what folks pay nationally, and monthly rent is 86.2% higher than the usual rates. Plus, income levels matter too, with Berkeley boasting a median household income of $91,259, which is 65% higher than the national average.

What Factors can Influence the Cost of Living in Berkeley?

Subsidies: Some areas might offer government subsidies or assistance programs that help lower cost of living for residents. These programs can include anything from 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 crop subsidies. Areas that offer less subsidies, could see an increase in their cost of living.

Urbanization: Urban areas with extensive amenities and job opportunities tend to have a higher cost of living due to increased demand for services and relocation, resulting in higher home prices and higher rents. Less densely populated rural areas, or areas with less demand tend to have fewer amenities and slower job growth, which results in a lower cost of living.

Healthcare: Healthcare expenditures and insurance premium rates can vary significantly, contingent upon the particular city or state. Factors such as the accessibility of healthcare facilities, out-of-pocket expenses for doctor's appointments, dental care charges, prescription medication costs, and expenses related to specialized medical care can all have an impact on the overall cost of living. In Berkeley, healthcare costs are 21.2% higher than the national average.

Where is the Data From?

The cost of living data in Berkeley displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Berkeley is 59% higher than the California average
  • The cost of living in Berkeley is 121% higher than the national average
  • Berkeley housing is 357% higher than the national average
  • California general sales tax is 42% higher than the national average
  • California state income tax is 61% lower than the national average

Most Affordable Places to Live in and Around Berkeley

See all the best places to live around Berkeley

Compare Berkeley, CA Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$154,963$12,914$3,616$4,649
      Renters$57,057$4,755$1,331$1,712
      The affordability of the housing market in Berkeley, CA as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Berkeley homeowners, the median income is $154,963. This indicates that a monthly maximum of $3,616 should be spent by homeowners on all housing related costs. Renters have a median income of $57,057. This indicates that renters would have a maximum of $1,331 for their rent related monthly costs.

      California Sales Tax

      State General Sales Tax With Max Surtax
      California 7.25% 10.5%

      California Income Tax

      State Income Tax (Low) Income Tax (High)
      California 1% 13.3%

      Goods & Services

      Item Berkeley National avg. Difference
      Haircut $25.00$24.263.0%
      Beauty Salon $76.00$45.5666.8%
      Toothpaste $3.64$3.701.7%
      Shampoo $1.45$1.2813.5%
      Movie $16.46$12.1335.7%
      Bowling $27.22$18.0051.2%

      Groceries

      Item Berkeley National avg. Difference
      Ground Beef $5.70$5.842.3%
      Fried Chicken $3.43$1.57118.2%
      Milk $4.91$4.675.1%
      Potatoes $4.87$4.931.3%
      Pizza $13.49$12.0911.6%
      Beer $11.18$10.417.4%

      Health Care

      Item Berkeley National avg. Difference
      Optometrist $137.40$125.689.3%
      Doctor $110.00$135.7819.0%
      Dentist $118.27$113.294.4%
      Ibuprofen $11.76$10.6510.4%
      Lipitor $508.17$468.608.4%

      Housing

      Item Berkeley National avg. Difference
      Home Price $1,059,500.00$184,700.00473.6%
      Avg. Mortgage Payment $6,553.90$2,346.69179.3%
      Apartment Rent $1,767.00$949.0086.2%

      Transportation

      Item Berkeley National avg. Difference
      Gasoline $4.60$3.4633.0%
      Tire Balancing $60.97$59.921.7%

      Utilities

      Item Berkeley National avg. Difference
      All Electricity $182.51$193.995.9%
      Phone $180.31$192.256.2%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Port Costa, CA24212020.0%
      Strawberry CDP (Tuolumne County), CA11612524.6%
      Pacheco, CA4,77511615.7%
      San Miguel CDP (San Luis Obispo County), CA2,69612928.9%
      El Cerrito CDP, CA5,69914039.6%
      Berkeley, CA123,065221121.2%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Victorville, CA122,95811716.5%
      Columbia, MO122,659982.2%
      Odessa, TX122,630963.9%
      Fargo, ND123,5501010.5%
      Hartford, CT122,5491043.9%
      Berkeley, CA123,065221121.2%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.