San Diego is considered expensive in 2025, with average rent for a 2-bedroom apartment at $2,850 and above-average costs for groceries, utilities, and property taxes.
In 2025, the median home price in San Diego is $875,000, requiring a household income of at least $10,500 per month to afford comfortably. For renters, expect to pay around $2,850 monthly for a basic 2-bedroom apartment. Here’s a closer look at the costs of living in America’s Finest City.
Housing Costs in San Diego
Housing is the biggest expense for most San Diegans. Buying a home in a decent neighborhood generally starts around $750K for a modest 3-bedroom, with prices quickly exceeding $1M in more desirable areas like Carmel Valley or Encinitas. Condos and townhomes offer a slightly more affordable path to homeownership, typically ranging from $450K-$750K.
For renters, a simple 1-bedroom apartment averages $2,200 monthly, while a 2-bedroom runs closer to $2,850. Luxury units and beachfront properties command even higher rents. It’s common for rentals to require proof of income exceeding 3x the monthly rent. Some popular neighborhoods and their typical rents:
- North Park: 1BR $2,100 | 2BR $2,700
- Pacific Beach: 1BR $2,400 | 2BR $3,100
- Hillcrest: 1BR $2,000 | 2BR $2,600
- La Jolla: 1BR $2,600 | 2BR $3,400
Many newer housing developments, especially condos and planned communities, have monthly HOA fees ranging from $200-$600+. This covers amenities and exterior maintenance but adds substantially to total housing costs.
Utilities and Energy Bills
Basic utilities for a 1,000 sqft apartment in San Diego cost around $250 monthly, including electricity, gas, water, and trash. Larger homes may pay $350+, especially if using air conditioning heavily in summer. Statewide efficiency standards help keep energy costs in check.
| Utility | Typical Monthly Cost |
|---|---|
| Electricity | $110 |
| Natural Gas | $40 |
| Water/Sewer/Trash | $100 |
| Internet | $65 |
While San Diego’s mild climate helps limit heating and cooling needs, the city’s water and sewer rates are among the highest in the country. Expect to pay 20-30% more than the national average.
Groceries and Food
Feeding a family in San Diego isn’t cheap. The average single adult spends around $400 monthly on groceries, while a family of four averages $1,100. Grocery costs run about 10% higher than the national average.
A typical grocery basket in San Diego looks something like:
- 1 gallon milk – $3.50
- Loaf of bread – $3.25
- 12 eggs – $3.00
- 1 lb chicken breast – $4.50
- 1 lb bananas – $0.60
Dining out adds up quickly too. Expect to pay $15-$20 per person for a basic meal at a casual restaurant, or $30+ at nicer establishments. Even fast food combos often exceed $10 after tax.
Taxes and Fees
San Diego’s base sales tax rate is 7.75%, although some neighborhoods charge more. For homeowners, annual property taxes average 1.1% of the assessed value – so the typical $875K house pays over $9,600 yearly.
California also has a progressive income tax topping out at 12.3% for high earners. A couple making $150K may have an effective state income tax rate around 6%, or $9,000 annually, in addition to federal taxes.
| Tax | Rate |
|---|---|
| Sales Tax | 7.75% |
| Property Tax | 1.1% assessed value |
| State Income Tax | 1% – 12.3% |
Vehicle registration fees are also quite high, averaging $200-$300 yearly per car. All these taxes and fees can add thousands to a household’s annual expenses compared to more affordable areas.
Transportation and Lifestyle
Getting around San Diego isn’t cheap either. While public transit exists, most residents rely on personal vehicles. Expect to pay $200+ monthly for car payment, insurance, gas, and maintenance per vehicle. Parking can also be expensive and hard to find in denser areas.
Other lifestyle expenses like gym memberships, entertainment, and hobbies add up too. A basic gym runs $40-$80 monthly, while a night out for dinner and drinks can easily exceed $75 per person. Child care is also very costly, averaging over $1,200 monthly for full-time infant care.
Sample Monthly Budget
| Expense | Single Adult | Couple | Family of 4 |
|---|---|---|---|
| Housing (rent/mortgage) | $2,200 | $2,850 | $3,500 |
| Utilities | $200 | $250 | $350 |
| Groceries | $400 | $700 | $1,100 |
| Transportation | $200 | $300 | $400 |
| Lifestyle/Entertainment | $400 | $600 | $800 |
| Taxes (income/property) | $600 | $1,000 | $1,400 |
| Total | $4,000 | $5,700 | $7,550 |
To live comfortably, a single adult in San Diego should budget at least $4,000 in gross monthly income (before taxes). Couples will want to aim for $5,500+, and families $7,500+. While doable on less, it requires sacrificing on housing, location, or lifestyle.
Frequently Asked Questions
Q: What salary do you need to live in San Diego?
A: To live comfortably, target an annual gross income of at least $50K for a single adult, $70K for a couple, or $90K for a family. However, $100K+ is ideal for most households.
Q: Is San Diego more expensive than Los Angeles?
A: Overall, San Diego is slightly less expensive than LA. Housing costs 5-10% less on average, although certain beachfront areas rival LA prices.
Q: What’s the cheapest area to live in San Diego?
A: Inland neighborhoods like Chula Vista, El Cajon, and Escondido tend to offer the lowest housing costs, although prices have risen there too. Expect to pay 10-20% less than central San Diego.
Q: How much do I need to make to buy a house in San Diego?
A: To afford the median priced home of $875,000, you’ll need a household income of at least $125,000, plus significant savings for a down payment and closing costs. Condos can be purchased with an income closer to $80K-$100K.
Q: Is San Diego a good place to retire?
A: San Diego can be a great place to retire if you have significant savings and don’t mind downsizing. The excellent weather, beaches, and laid-back vibe are big draws. However, the high costs can be challenging for retirees on a fixed income.
Q: What are the biggest hidden costs of living in San Diego?
A: Parking and transportation costs often catch people off guard, as well as high utility rates and extra fees like HOAs. Eating and drinking out is also pricier than many expect.
While San Diego is undoubtedly an expensive place to call home, many residents find the perfect weather, beaches, and quality of life well worth the premium. By understanding the true costs and budgeting accordingly, it’s possible to enjoy a fulfilling life in this beautiful SoCal city.