Insights » Cities in California with highest and lowest household expenses

2023 Report: Cities in California where Household Expenses are Highest and Lowest

How does living in the Golden State affect your wallet? doxo breaks down key insights about the state’s household expenses, with a close eye to how bills differ in towns and cities. On average, California’s household expenses, doxo’s data reveals, are $2,838 per month.

doxo’s data also has infographics for 431 cities and towns across California, breaking down localized bill pay data figures as well. The state-wide rankings for most and least expensive cities provide insight into cost of living in California and how it changes according to location.

The data sheds light on California’s cost of living through other metrics, too. For example, the “percent of household income” data point shows what percentage of household income local residents spend on bills. doxo’s data also indicates how much more or less expensive specific cities are than the national and state average.

California residents pay $2,838 in household bills a month

The average California household pays $2,838 a month for the 10 most common household bills. This figure takes into account the 10 most common household bills, which are:Mortgage; Rent; Auto Loan; Utilities (electric, gas, water & sewer, and waste & recycling); Auto Insurance; Cable & Internet & Phone, Health Insurance (consumer paid portion); Mobile Phone; Alarm & Security; and Life Insurance.

California residents, overall, pay average household bill expenses: the state ranks 2nd out of 50 states in terms of average monthly spending. Slightly more expensive than California is Hawaii, where residents pay $3,070 a month on average; slightly more affordable is New Jersey, where residents pay $2,727.

For comparison, the most affordable state in the US for household bills is West Virginia, where residents pay $1,530 per month.

California’s household expenses, on average, are 38.7% higher than the national average of $2,046.

Absolute dollar amounts don’t tell the full story, however. The “percentage of household income” metric provides a more proportional look at bill spending in a particular location. California households spend 40% of their income on household expenses, which is higher than many states where households pay costlier expenses on average.

Annually, California residents pay $428 billion in household bills. See more data about bill pay in California by clicking on the infographic link below.

Data: doxo INSIGHTS’ bill pay infographic about California

• Average Bill Cost per HH: $2,838 per month
• State Bill Pay Market Size: $428 billion
• doxoINSIGHTS State Rank: 2 out of 50
• Percent of HHI Used for Bills: 40%
• Difference from the National Average: 38.7% higher

Housing costs drive California’s high expenses

The average California’s household pays $2,838 in the 10 most common household bills per month. The much higher-than-average rent and mortgage prices drive the expenses as high as they are, with both being significantly more than the national average. The average mortgage payment in California is $2,402, and average rent is $1,762, compared to the national average mortgage bill of $1,321 and rent bill of $1,191. This makes California’s mortgage costs 82% higher than the national average, and rent costs 48% higher than the national average.

Life insurance is also an area in which California residents spend considerably more than the national average. The average household in California pays $110 a month for life insurance, compared to the national average of $89.

Auto insurance, however, is more affordable in California than it is in the country overall. While US residents on average spend $207 per month on car insurance, in California they spend just $196.

Note: Health Insurance and Life Insurance expenses do not account for payments made by employers on behalf of employees. These just include out-of-pocket expenses. Also, the state and national bill totals take into account the percentage of households that pay a bill.

Average California Household Bill Spending

San Ramon is the most expensive area for California’s household bills

Residents of San Ramon pay the highest household bills in the state of California, at an average of $4,390 per month. Danville, home to major tech companies and entrepreneurs, comes in second in the rankings, with residents paying an average of $4,367 on household expenses. Marina Del Rey, in the heart of Los Angeles, comes in 9th, at $4,047 on average.

Interestingly, residents who live in one of the 10 most expensive localities in California are likely to spend a smaller share of their income on household expenses than the residents of the 10 most affordable areas in California (listed below). For example, San Ramon residents spend just 30% of their income on household expenses, on average. Meanwhile, residents of El Centro, the most affordable area in the state, spend 41% of their income on bills.

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 doxo INSIGHTS’ 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).

El Centro is the most affordable place in California for household bills

Out of 431 cities and towns, El Centro is the most affordable place in California, with residents paying $1,641 on average for household bills. Household bills account for 41% of local income in Wasco. In fact, most of the areas on the list below spend around 50% of average household income on bills; a markedly higher number than those on the “10 most expensive” list.

Wasco comes in at the second most affordable town or city in California, with residents paying $1,724 per month on average.

Also on the list of 10 least expensive cities in California are Crescent City ($1,749 per month), Taft ($1,760 per month), and Yucca Valley ($1,764 per month).

10 Most Affordable California Cities for Household Bills

Some individuals may be deciding whether to move from a more expensive city to a less expensive one. doxoINSIGHTS can be a valuable resource for consumers seeking to make key decisions like this, allowing them to compare California’s household expenses against average bills in different cities and states across the country. They can also use doxo INSIGHTS’ regional bill comparison database to compare average costs for over 4000 towns and cities across the country.