Cost of Living in California: A Look Back from 2015 to 2024

California, known for its sunny beaches, booming tech scene, and vibrant culture—has long been a place people dream of calling home. But behind the beauty and excitement, there's a harsh reality: the rising cost of living. Over the past decade, prices for housing, gas, groceries, and more have gone up fast, making life in California a big financial challenge for many. In this article, we’ll look at how the cost of living has changed from 2015 to 2024 and what it means for people who live here or plan to move. Whether you’re already in California or just curious, let’s dive into what it really costs to live in the Golden State.

In this article, I’ll share a personal breakdown of real costs I’ve experienced over the last nine years living in Los Angeles and San Francisco. From rent and groceries to transportation and utilities, these firsthand numbers will give you a clear picture of what it’s really like to manage daily expenses in California’s most iconic cities. Whether you're considering a move or just curious about life on the West Coast, these insights offer a window into the financial reality many face here.

Housing Costs (Renting)

• 2015: 1 Bedroom apartment in Burbank, CA: $1,075.00 per month (750 sq ft)
• 2016: 1 Bedroom apartment in Canoga Park, CA: $1,175.00 per month (950 sq ft)
• 2017: 1 Bedroom apartment in North Hollywood, CA: $1,450 per month (1000 sq ft)
• 2018: 1 Bedroom apartment in Oakland, CA: $1,800 per month (700 sq ft)
• 2020: 1 Bedroom apartment in Santa Monica, CA: $2,100 per month (950 sq ft)
• 2021: 1 Bedroom apartment in Thousand Oaks, CA: $2,350 per month (850 sq ft)
• 2022: 2 Bedroom apartment in Granada Hills, CA: $2,550 per month (1075 sq ft)
• 2024: Same apartment after rent increase: $2,655 per month

If you’re planning to rent an apartment or house in California, be prepared to pay upfront—most rentals require one to two months' rent in deposit. This added cost can make the initial move-in even more challenging in an already pricey market.

I’ve always rented in Los Angeles, but I’ve seen how housing prices have changed through friends who bought homes nearby. In 2020, one friend purchased a 3-bedroom house in Palmdale, CA, for around $320,000. Another bought a 3-bedroom house in Corona, CA, just last year for over $500,000. Recently, a 2-bedroom apartment in my own complex sold for more than $650,000. These examples show just how much housing costs have surged, even within a few years and across different areas.

These days, affording a house feels nearly impossible. With prices rising so quickly, especially in California, homeownership has become out of reach for many people, even those with stable, well-paying jobs.

Transportation and Gas Prices

• 2015: Before I had a car I was expending around $150 USD per month in buses to go to my work everyday.
• 2016: I got my first car in the US, and the gas was around $2.85 per gallon.
• 2017: Gas price around $3.20
• 2018: Gas price around: $3.50
• 2019: Gas price around: $3.75
• 2020: Gas price around $4.10
• 2021: Gas price around $4.50
• 2022: Gas price around: $6.50
• 2023: Gas price around: $5.90
• 2024: Gas price around: $4.90

Groceries and Essentials

From 2015 to 2022, it was just my wife and me, so our expenses were based on a two-person household. After our baby was born in 2022, our costs shifted to support a family of three.

• 2015: Around $450 per month
• 2016: Around $480 per month
• 2017: Around $500 per month
• 2018: Around $525 per month
• 2019: Around $540 per month
• 2020: Around $570 per month
• 2021: Around $600 per month
• 2022: Around $700 per month
• 2023: Around $750 per month
• 2024: Around $800 per month

For electricity it vary depends on the use, but from 2015 to 2020 our bill was not higher than $150 per month, but after 2020 now I normally pay around $250.

For Internet, since 2015 they had pretty much a similar cost, from $50 to $70 dollars per month.

For cellphones, the cost depends on the number of lines you have, but before for 3 lines I was paying around $125, and now I pay around $175.

Taxes and Regulatory Costs

Since I work under a W-2, my employers handle the deductions for taxes and other mandatory costs directly from my paycheck. This includes federal and state taxes, Social Security, Medicare, and health insurance premiums. I'll share the percentage of my annual salary that went toward these deductions, giving insight into how much was withheld each year.

• 2015: From a Salary of $95,000 they took around 26%.
• 2016: From a Salary of $120,000 they took around 28%.
• 2017: From a Salary of $127,000 they took around 29%.
• 2018: From a Salary of $145,000 they took around 30%.
• 2020: From a Salary of $245,000 they took around 33%.
• 2021: From a Salary of $400,000 they took around 40%.
• 2022: From a Salary of $192,000 they took around 37%.
• 2024: From a Salary of $210,000 they took around 38%.

Quality of Life and Economic Opportunities in California

• Climate and Natural Beauty: California’s diverse landscapes—from sunny beaches to mountain ranges—are a big draw. The mild climate and scenic views add to the quality of life, making it one of the most desirable places to live in the U.S.
• Cultural Diversity: California is known for its multicultural population and vibrant communities, offering a rich mix of cultural experiences, cuisine, and traditions.
• Access to Amenities and Activities: With world-class restaurants, entertainment, parks, and tech hubs, residents enjoy a broad range of activities and resources. However, these come with a cost, making budgeting important for maintaining a comfortable lifestyle.

Economic Opportunities:

• Tech and Entertainment Hubs: As home to Silicon Valley, Los Angeles, and other industry hubs, California offers unique opportunities in technology, entertainment, and media. High-paying jobs in these sectors attract top talent from around the world.
• Competitive Job Market: The job market is highly competitive, especially in tech, entertainment, and finance, which drives salaries higher but also creates pressure to perform in demanding roles.
• Entrepreneurial Environment: California fosters an entrepreneurial spirit, with access to venture capital, incubators, and a network of experienced professionals, making it a great place for startups.

Balancing Costs with Quality of Life: Living in California offers many lifestyle benefits, but the high cost of housing, taxes, and essentials can strain finances. For those who can navigate these expenses, the state offers an unmatched mix of professional and personal opportunities.

Lessons Learned and Future Outlook

Lessons Learned:

• Adapting to Rising Costs: Over the years, living in California has underscored the need to budget carefully and adjust spending habits, especially as housing, transportation, and everyday expenses have steadily risen.
• Financial Planning is Key: Planning for the long term, especially with savings and investments, has been essential in coping with California’s high cost of living. Many residents find that balancing quality of life with financial priorities is a constant challenge.
• Resilience and Flexibility: Californians often need to be flexible with their career and housing choices, whether it’s considering remote work options, moving to more affordable areas, or finding ways to increase income through side projects or entrepreneurial ventures.

Future Outlook:

• Remote Work and Relocation Trends: The rise of remote work has opened new possibilities for living outside traditional high-cost areas, which may gradually alleviate housing demand in core cities. However, California’s desirable lifestyle means demand is unlikely to disappear entirely.
• Environmental and Policy Impacts: With continued environmental regulations and housing policies, residents may see shifts in energy costs, transportation options, and housing affordability in the coming years.
• Adapting to Economic Shifts: As California’s industries continue to grow and evolve, residents will need to stay adaptable, finding ways to benefit from the state’s economic opportunities while navigating its high costs.

California’s cost of living presents unique challenges, but with careful planning and a proactive approach, it’s possible to thrive here. The future may hold new shifts and pressures, but understanding and adapting to these dynamics can help residents make the most of what the state has to offer.

Conclusion

Living in California comes with undeniable rewards—beautiful landscapes, vibrant cities, and unique career opportunities. But these advantages come at a high price. Over the past decade, rising costs have made it challenging to maintain a comfortable lifestyle, especially for those hoping to buy a home or raise a family.

As someone who’s navigated these expenses year after year, I’ve learned the importance of financial planning, adaptability, and resilience. While the future may bring more shifts in the cost of living, the key to thriving in California lies in staying informed, adjusting to new challenges, and finding balance between quality of life and financial goals.

Whether you're already a resident or considering a move, understanding the true cost of living here can help you make decisions that align with your goals and values. California is a place like no other—and with the right approach, it’s possible to make the most of everything this state has to offer.