An Overview of Cost of Living in Simi Valley, CA
Understanding the cost of living in Simi Valley can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Simi Valley cost of living index is 171, which is 71% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.
The cost of living in Simi Valley 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, Simi Valley 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 Simi Valley 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 199.8% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.
Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Simi Valley goods and services are 16.2% more expensive than the national average, leaving you with less money at the end of the month.
Groceries are getting more expensive by the day and the cost of groceries makes up 13% of the overall cost of living index. In the past two years, prices have shot up by over 10%! Unfortunately, in Simi Valley, it's the same story – grocery costs are 12.2% higher than what people pay across the country.
What Do Locals Say About the Cost of Living in Simi Valley?
The most insightful perspective on a city comes from its residents. We recently surveyed 13 locals to gauge their perception of the cost of living in Simi Valley. The feedback revealed that 15% of respondents found the cost of living to be reasonable, with prices on the decline, while 85% regarded it as notably expensive with prices that continue to rise.
Is Simi Valley Affordable?
Is Simi Valley 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 Simi Valley, the median home price is 231.7% higher than what most folks pay across the country, and monthly rent prices are 125.2% higher than the usual rates. Income levels in Simi Valley come in at $99,245, which is 79.4% higher than the national average.
What Factors can Influence the Cost of Living in Simi Valley?
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 Simi Valley, healthcare costs are 7.9% higher than the national average.
Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Simi Valley, the groceries index is 12.2% 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 Simi Valley, the housing index comes in at 199.8% higher than the national average.
Where is the Data From?
The cost of living data in Simi Valley 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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