doxoINSIGHTS » California » Cost of Living in California: Cities where Household Expenses are Highest and Lowest in 2024

Cost of Living in California: Cities where Household Expenses are Highest and Lowest in 2024

What is the cost of living in California? doxo breaks down key insights about California’s household expenses, with a close look into how bills differ between towns and cities across the state. 

According to doxo’s The Cost of Bills Index™ (COBI), the average household in California pays $3,010 in monthly expenses. doxoINSIGHTS compares the cost of the ten most common household bills across different regions. This includes Utilities, Cable & Phone, Mobile Phone, Auto Loans, Auto Insurance, Life Insurance, Health Insurance, Alarm & Security, Rent, and Mortgage.

The data sheds light on California’s cost of living through other metrics as well. For example, the “percent of household income” data point shows what percentage of their household income residents spend on bills each month. 

By leveraging these tools, residents can gain a clearer understanding of their household expenses and optimize their financial planning.

California ranks as the 2nd most expensive state in the US for household bills

According to doxo’s COBI report, California is ranked as the 2nd most expensive state in the U.S. for household bills, making it the least expensive state for these expenses. 

At $36,115 per year, California’s household expenses, on average, are 42% higher than the US average of $25,513. 

Absolute dollar amounts don’t tell the full story, however. doxo’s “Percentage of Household Income” data provides a more proportional look at bill spending in a particular location. California households spend 36% of their income on bills. 

COBI helps consumers understand how much it costs to live in one area as compared to another as it relates to the most common household bills. For COBI, the number 100 represents the national average and then, states, counties and cities are assigned a number, either above or below 100, based on how they compare to the national average. The COBI for California is 142.

• Average Bill Cost per Household: $3,010 per month
• Cost of Bills Index(COBI): 142
• doxoINSIGHTS State Rank: #2
• Percent of Household Income Used for Bills: 36%
• Compared to the National Average: 42% higher

California Household Expenses are 42% Higher Than the National Average

The average California household pays $3,010 per month in the 10 most common household bills. The least expensive of these are alarm and security bills. 

On the lowest end of the spectrum, the average monthly payment for alarm and security bills in California is $91, compared to the national average of $85, making it approximately 1% lower.

Monthly mortgage bills are the most significant of the 10 most common bills for California residents. The average monthly mortgage payment is $1,022, compared to the national average of $1,402, making it 31% less expensive. 

Average California Household Bill Spending

*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage).

Porter Ranch has the highest cost of living in California for household bills

Residents of Porter Ranch pay the highest household bills in the state of California, at an average of $4,878 per month. The Cost of Bills Index (COBI) for Porter Ranch is 229, meaning the average cost of bills in this city is 129% higher than the national average.

In proportion to household income, monthly bills in Porter Ranch make up 41% of the average annual household income of $142,170. 

Access detailed infographics about each city or town by clicking on the hyperlinks in the “City” column in the tables below. You can also browse doxoINSIGHTS’ regional bill comparison database to see infographics about more than 4,200 cities and towns across all 50 states in the US.

10 Most Expensive California Cities for Household Bills

*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage).

Thermal has the lowest cost of living in California for household bills

Out of 460 cities, Thermal is the most affordable place in California, with residents paying $1,444 on average for household bills, accounting for 57% of annual income of $30,489. The Cost of Bills Index (COBI) for Thermal is 68, meaning the average cost of bills in this city is 32% below the national average. 

Red Bluff is the second most affordable city in California, with residents paying $1,742 per month on average.

Also on the list of the 10 least expensive cities in California are Ridgecrest ($1,754), Chowchilla ($1,779) and Clearlake ($1,827).

10 Most Affordable California Cities for Household Bills

*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage).

Some individuals might be considering moving from a more expensive city to a less expensive one. For those making such decisions, doxoINSIGHTS can be a valuable resource. It allows consumers to compare household expenses in California with average bills in various cities and states nationwide.