An Overview of Cost of Living in Monterey, CA
Are you thinking about relocating, but curious about the potential cost of living in Monterey? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Monterey stands at 199, making it 99% 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, Monterey 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, Monterey falls into this category, which may not align with your preferences for a budget-friendly living environment.
Housing costs make up a big chunk of the cost of living in Monterey, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 275.3% more than the average city. This includes stuff like home prices, rent, 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 Monterey, you can expect to pay 21.5% more than average for these items, making it a more expensive place to live.
The cost of groceries continues to rise at an alarming rate. Over the last two years, grocery prices have increased by more than 10%! Unfortunately, in Monterey, the news isn't any better as grocery prices are 10.4% higher than the national average.
What Do Locals Say About the Cost of Living in Monterey?
Nobody knows their city better than the people who actually live there. So, we asked 23 local residents how they would rate the cost of living in Monterey and this is how they responded. 26% of people said that the cost of living was affordable, with prices decreasing, while 74% of people said that the cost of living was very expensive and prices continue to rise.
Is Monterey Affordable?
Is Monterey an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Monterey is 352.7% higher than the national average, while the average monthly rent prices are 94.5% higher than average. The affordability of any location can also be influenced by median income levels. Monterey has a median household income of $119,911, which is 47.4% higher than the national average.
What Factors can Influence the Cost of Living in Monterey?
Utilities: Much like any other costs, utility expenses can exhibit considerable variations, influenced by factors such as climate, available energy sources, geographic location and state regulations. The costs associated with electricity, water, heating, and waste disposal can vary significantly depending on the city or state in question. In Monterey, the utilities index stands at 42.7% higher than the national average.
Transportation: In cities with limited or no public transportation, residents may find it necessary to own and maintain vehicles, thereby elevating the cost of living. Monthly expenditures include fuel, insurance, routine maintenance and potential lease or financing commitments. In Monterey, the transportation index stands at 36.6% higher than the national average.
Housing: When everyone's vying for homes in popular areas, it drives up property prices and rents, making the overall cost of living surge. On the flip side, in less sought-after locales, where housing demand is low, prices tend to dip, resulting in a more economical cost of living. In Monterey, the housing index comes in at 275.3% higher than the national average.
Where is the Data From?
The cost of living in Monterey, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.
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