Here Is the Cost of Living for Each Generation in California

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There’s a reason California is easily the most populous state in the country, outdistancing No. 2 Texas by about 8.5 million people. In addition to its vast size, the Golden State has plenty of sunshine, a diverse geography and world-renowned cities that serve as centers of technology, culture and entertainment.

But if you want to live there, you’ll need to pay for the privilege.

California is the third-most expensive state based on a cost-of-living index devised by the Missouri Economic Research and Information Center (MERIC). The overall index score in California is 144.7 — well above the national mean of 100. The only states more expensive are Hawaii (184.6) and Massachusetts (146.9).

As with all states, costs in California will vary depending on where you live. You’ll face much higher living costs in big coastal cities like Los Angeles, San Francisco and San Diego than you will in smaller inland towns such as Yreka, Twentynine Palms and Lamont.

Your age also plays a role in how much it costs to live in California. GOBankingRates revealed the average monthly expenses and highest expenditure cost for each generation in every state, including the Golden State. Researchers looked at data from MERIC, the U.S. Census Bureau, the Bureau of Labor Statistics and the Federal Reserve. Spending categories included groceries, healthcare, housing, utilities, transportation and miscellaneous expenses.

Here’s a look at the cost of living for each generation in California:

Gen Z (Born 1997 or Later)

• Grocery: $3,755
• Healthcare: $3,126
• Housing: $17,012  
• Utilities: $3,748
• Transportation: $5,298
• Total expenditures: $32,939

Millennials (Born 1981 to 1997)

• Grocery: $6,548
• Healthcare: $8,329
• Housing: $22,961  
• Utilities: $6,014
• Transportation: $7,880
• Miscellaneous: $1,110
• Total expenditures: $52,840

Gen X (Born 1965 to 1980)

• Grocery: $7,630
• Healthcare: $12,769
• Housing: $24,085
• Utilities: $7,574
• Transportation: $9,258
• Miscellaneous: $1,274
• Total expenditures: $62,591

Boomers (Born 1946 to 64)

• Grocery: $6,196
• Healthcare: $14,260
• Housing: $17,709
• Utilities: $6,475
• Transportation: $6,727
• Miscellaneous: $1,248
• Total expenditures: $52,61

More Insights From the Study

Gen Xers have the highest living costs in the Golden State, just like they do in the rest of the country. Expenditures for Gen Xers in California average $62,591 a year, according to the study. That’s much higher than the averages for Gen Zers ($32,939), baby boomers ($52,616) and millennials ($52,840).

Gen Xers in California outspend other age groups in nearly every category. The one exception is healthcare, where boomers have the highest costs. One thing the data reveals is that Gen Xers have entered a stage of life where their incomes — and costs — begin to peak.

Methodology: For this study, GOBankingRates analyzed each U.S. State to find the average monthly expenses and the highest expenditure cost for different generations. First, GOBankingRates found information on each state including; total population, population ages 65 and over, total households, household median income — all sourced from the U.S. Census American Community Survey. The cost of living indexes for each state as sourced from Missouri Economic Research Information Center. For each cost of living index the average expenditure cost can be calculated using the Bureau of Labor Statistics Consumer Expenditure Survey 2602 for different generations. The generations are defined as; Gen Z born between 1997 or later, millennials born between 1981 and 1997, Gen X born between 1965 and 1980, and boomers born between 1946 and 1964. This calculation gives the average expenditure cost of living for each generation in each state. Using the average home value, as sourced from Zillow Home Value Index for August 2024, assuming a 10% down payment and using the national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. Using the average mortgage and expenditure costs the total cost of living can be calculated for each state and for each generation. The highest expenditure index and average monthly cost were also shown to find the highest expenditure cost for each state. The states were sorted to show the cheapest to most expensive total cost of living. The data was collected on and is up to date as of Aug. 24th, 2024.

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