F
92%
Overall NAT. AVG.
8%
Goods & Services NAT. AVG.
267%
Housing NAT. AVG.
Search Homes for Sale
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 Monterey California National
Cost of living192140100
Goods & Services108111100
Groceries115112100
Health care123109100
Housing367196100
Transportation130126100
Utilities132127100

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 192, making it 92% 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 Monterey 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, Monterey 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 Monterey, 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 267% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

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, Monterey does not fare better, with grocery expenses coming in at 14.5% higher than the national average.

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

The most insightful perspective on a city comes from its residents. We recently surveyed 23 locals to gauge their perception of the cost of living in Monterey. The feedback revealed that 26% of respondents found the cost of living to be reasonable, with prices on the decline, while 74% regarded it as notably expensive with prices that continue to rise.

Is Monterey Affordable?

Is Monterey an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Monterey, the median home price is 340.5% higher than what most folks pay across the country, and monthly rent prices are 95.5% higher than the usual rates. Income levels in Monterey come in at $80,908, which is 46.2% higher than the national average.

What Factors can Influence the Cost of Living in Monterey?

Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In Monterey, the groceries index is 14.5% higher than the national average.

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In Monterey, the transportation index is 30.4% higher than the national average.

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Monterey, the standard sales tax rate starts at 7.25%, and the income tax rates commence at 1%.

Where is the Data From?

The cost of living data in Monterey 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.

New Real Estate Listings in Monterey Area
Search Homes for Sale in Monterey, CA

Cost Of Living Quick Facts

  • The cost of living in Monterey is 37% higher than the California average
  • The cost of living in Monterey is 92% higher than the national average
  • Monterey housing is 267% higher than the national average
  • California general sales tax is 42% higher than the national average
  • California state income tax is 56% lower than the national average

Most Affordable Places to Live in and Around Monterey

See all the best places to live around Monterey

Compare Monterey, CA Cost of Living

      vs
      How would you rate the cost of living in Monterey?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Monterey?
      Write a review to give others more information about this area.
      See all Monterey poll results

      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$112,832$9,403$2,633$3,385
      Renters$70,428$5,869$1,643$2,113
      A good way to judge both the affordability of the housing and the cost of living in Monterey is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Monterey has a median income of about $112,832 for people who own homes. Based on that number, a maximum of $2,633 should be spent on expenses related to housing. Renters have a slightly different median income, which is $70,428. Based on this average, renters should spend no more than $1,643 on all rental costs if they want to maintain a non-impoverished standard of living.

      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% 12.3%

      Goods & Services

      Item Monterey National avg. Difference
      Haircut $33.94$24.2639.9%
      Beauty Salon $48.51$45.566.5%
      Toothpaste $3.72$3.700.4%
      Shampoo $1.66$1.2829.9%
      Movie $13.31$12.139.7%
      Bowling $33.30$18.0085.0%

      Groceries

      Item Monterey National avg. Difference
      Ground Beef $5.79$5.840.8%
      Fried Chicken $2.13$1.5735.7%
      Milk $5.05$4.678.2%
      Potatoes $4.77$4.933.4%
      Pizza $14.92$12.0923.5%
      Beer $10.99$10.415.6%

      Health Care

      Item Monterey National avg. Difference
      Optometrist $158.95$125.6826.5%
      Doctor $194.05$135.7842.9%
      Dentist $147.78$113.2930.4%
      Ibuprofen $11.51$10.658.1%
      Lipitor $390.15$468.6016.7%

      Housing

      Item Monterey National avg. Difference
      Home Price $813,600.00$184,700.00340.5%
      Avg. Mortgage Payment $8,581.10$2,346.69265.7%
      Apartment Rent $1,855.00$949.0095.5%

      Transportation

      Item Monterey National avg. Difference
      Gasoline $4.81$3.4638.9%
      Tire Balancing $65.62$59.929.5%

      Utilities

      Item Monterey National avg. Difference
      All Electricity $294.74$193.9951.9%
      Phone $190.07$192.251.1%
      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.
      Moss Landing, CA3111716.8%
      Boronda, CA1,74013231.5%
      Sand City, CA32013737.1%
      Salinas, CA156,17714747.2%
      Elkhorn, CA99815454.1%
      Monterey, CA28,57519291.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Granite City, IL28,5638217.9%
      Schererville, IN28,5591099.1%
      Northampton, MA28,55212524.6%
      Burton, MI28,5988911.0%
      Lake in the Hills, IL28,6171066.5%
      Monterey, CA28,57519291.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.