You might scoff at San Diego’s nickname, but that’s probably because you don’t know how it came to be. By luck, this city got dubbed with the slogan “America’s Finest City.” After losing many opportunities that would have put San Diego on the map, Former Mayor Pete Wilson stole the nickname from a magazine and forced it upon the city’s residents to boost morale.
Today, this name still does not live up to the city’s reputation! Even though San Diego has pleasant weather year-round, it does not make up for everything that is extremely expensive here, unlike Boston, Los Angeles, and New York, which all-around expensive cities are. San Diego has a few reasonable and affordable points. Though the blue skies and sandy beaches make you want to move here, Maxwell Drever suggests that you refrain from making any decisions until you have looked at the following information:
Following are four reasons behind San Diego’s rising expenses:
Real Estate Is Expensive
Housing cost is so high in San Diego because everyone wants to live here! Most people come here for vacation, visit the beaches and bask in the pleasant weather, and end up deciding they want to move here.
| Expense | $ Cost |
| Rent (Private 1-Bedroom Apartment vs. Luxury Villa) | $950 to $3700 |
| Mobile Phone | $30 |
| Electricity | $70 |
| Water | $50 |
| Internet | $60 |
| Gas | $0.89/Liter |
| Groceries | $120 |
| Eating Out | $15 to $75 |
| Gym Membership | $40 |
| Transport Rental | $450 |
| Housekeeping (Less Than 10 Hours) | $70 |
| Total | $1500+ |
The median housing cost in the US is $231,000, whereas, in San Diego, it is $645,000. A 2,000-square-foot house will cost you $1 million, and condos near the beach that are just 1,000 square feet will cost you more than $1 million. Expect to pay at least $1,600 monthly when it comes to renting. Most renters end up getting a roommate even in such a small space.
High Sales Tax
San Diego puts all the other US states to shame regarding sales tax. Currently, the county’s sales tax is 7.75%. This is calculated by adding California’s 6% sales tax, the county’s 0.25% sales tax, and an additional 1.5% sales tax. Voting on Election Day usually raises the sales tax, so many people shop online or buy items from other countries when they are on vacation.
Costly Living
| Cost of Living | San Diego | USA | California |
| Grocery | 109.7 | 100 | 105.1 |
| Housing | 279.1 | 100 | 239.1 |
| Health | 89 | 100 | 92.4 |
| Median Home Cost | $812,100 | $291,700 | $684,800 |
| Transportation | 120.2 | 100 | 133.1 |
| Utilities | 102.8 | 100 | 102.4 |
| Miscellaneous | 105.6 | 100 | 103.7 |
| Overall | 160.1 | 100 | 149.9 |
*National Average: 100
San Diego sits at 160.1 on the national average index of 100. Apart from housing costs, other extremely expensive things in San Diego include utilities, transportation, groceries, health care, and more. There are some suburbs in San Diego that are costlier. These include Encinitas and Poway.
Highly Sought-After Tourist Destination
Called California’s Beach City, San Diego offers 70 miles of Pacific Ocean’s cost line, dozens of cultural attractions, and a vibrant nightlife. There’s the Balboa Park, which is called the “Smithsonian of the West,” San Diego Zoo, Sea World, Legoland, and plenty of other family-friendly destinations.
The attractions opened here are based on demand. People from all over the world come to San Diego, and the city knows that tourists will pay for the sought-after destinations Maxwell Drever reveals.
San Diego thrives on tourism. The cost of living here is almost equal to the cost of living in California. However, compared to other cities, it is still expensive. So, if you plan to move here, you need to start hunting for better-paying jobs.