Cost of Living Reality

Choosing where to lay down your roots is a journey that transcends mere geography; it’s a financial saga that can shape the rest of your life. Where you may have grown up may not be the place you raise your own family. Times change, and the economics of a given region may not be sustainable anymore. I moved to San Diego over 15 years ago from Silicon Valley, and one of my main drivers was economical, as it was about 15-20% cheaper for housing back then. Fast forward to 2023, and San Diego has surpassed the Bay Area as the most expensive city to live in California. I couldn’t afford my own house if I had to purchase it today on our income. I can only imagine the cost of living reality for my children in San Diego when it is their turn to raise a family.

The latest revelations from US News thrust us into the heart of America’s economic narrative, where the cost of living casts a shadow over our decisions. Topping the charts in the most expensive places to live are California, Hawaii, New Jersey, New York, and Washington, while the more budget-friendly havens include Mississippi, Alabama, Arkansas, Kentucky, and West Virginia. Nestled comfortably in the middle of this spectrum are the burgeoning destinations of Idaho and North Carolina, claiming the 22nd and 23rd spots, respectively.

Delving into the numerical realm reveals a stark contrast in the value of your hard-earned dollar depending on your location. Take Mississippi, for instance, where the annual mean wage stands at $45,180, accompanied by an average rent of $1,016. Here, the spending power of $100 extends to a princely $115.60. On the flip side, California boasts an annual mean wage of $73,220 (which is hard to believe), but renting digs into your pockets at a hefty $2,032. In the Golden State, the spending value of $100 dwindles to a mere $83.60. The disparity in spending power between these two states is staggering, with a jaw-dropping $30 difference.

Real Estate Comparison (Median-Priced Home)

*According to Redfin (June 2023)

California: $799,000

Mississippi: $263,000

Amidst the sea of numbers, it’s crucial to navigate wisely. Seeking God’s guidance and engaging in open conversations with your family can serve as invaluable compass points in this odyssey of determining where to live. Obviously, there are many other factors, including job/business opportunities, extended family, quality of life, environment, church, and schools that play into deciding where to live. In the vast tapestry of the cost of living, every dollar tells a story, and it’s up to us to script a tale of fiscal prudence, spiritual direction and sagacity.

Here is a valuable tool to calculate the cost of living from one city to another. I really like how this tool not only compares housing but also groceries, transportation, healthcare, and even getting a haircut.

-HC