Why Is California So Expensive – Of course, before embarking on our journey, we pondered the question of whether or not we would be able to support ourselves in California.
It was already clear at the time that we would be living off of one salary for the foreseeable future. Mrs. EA will be staying at home with Lovebug for the time being. So we went out and did some research.
As a result, it will be possible to make it work with the salary that I receive. And if that doesn’t work out, we’ll simply return to Germany. But we were determined to give it a shot!
My understanding of the costs has improved significantly since spending nearly a year in the United States.
Perhaps you’ve always wondered how much it would cost to live in California, or perhaps you’re about to make the big move to the United States.
As a result, I’m writing a little about our experiences as well as the five factors that contribute to the high cost of living in California. And then there were two against.
It is extremely important to note that everything I write is highly dependent on where you live, as well as your own standard of living. Costs in the Midwest will be different from those in the Northeast. But, all right, let’s go!
Why Is California So Expensive?
5 Reasons: Why Is California So Expensive?
Here are five reasons why California is so expensive.
1. Housing
If you look at the LinkedIn post by Zillow founder Spencer Rascoff, it’s clear that living in Los Angeles isn’t cheap.
In his blog post, he discusses what percentage of the average salary in Los Angeles is spent on home ownership and rental property. A home loan requires approximately 47 percent of a household’s income to be used to pay it off.
We haven’t purchased a home yet, but the rental percentage isn’t significantly lower. It is necessary to calculate the rent for a detached house of approximately 100-125 sqm that has been renovated at a rate of 3–3.5k per month.
Of course, there are some areas in Los Angeles where rental rates are less expensive. However, you would not want to live in the majority of these areas either. Alternatively, you may be forced to take to the streets.
We were fortunate in that we were able to find a slightly less expensive house. However, it could benefit from one or both of the following renovations:
2. Incidental Costs
In addition, the ancillary costs themselves account for a significantly greater proportion of total costs in the United States than in Germany.
Without a doubt, we have the transition from apartment to house, but that is just one half of the story. Our garden is automated by our landlord, who waters it three times a week.
Water prices in California have been stunned as a result of the drought that has hit the state in recent years. The effects of this are especially noticeable when watering the garden.
Our high utility bills are also a result of the age of the house and the inadequate insulation it provides.
Summer temperatures can reach over 40 degrees Celsius for several days at a time, which necessitates the use of air conditioning almost constantly. Once you turn them off, the room becomes almost as warm as the outside air.
Both of these are, of course, high-end versions. Stopping the watering of the garden, on the other hand, is not an option right now.
For starters, I don’t want to irritate our landlord by leaving our lawn in a state of disarray. On the other hand, it is also enjoyable to spend time with family and friends on the lawn in the garden.
If I owned a house, I would at the very least keep the rock garden in front of it as a feature. Alternatively, it can be served as a small piece of desert.
3. Food
The cost of groceries in the United States is not significantly higher than the cost of groceries in Germany. So, if you want to, you can definitely live on a shoestring budget.
However, you must keep in mind that the food industry has its own set of regulations. And they are nowhere near as numerous as they are in Europe.
As a result, we made the decision to eat primarily organic foods going forward. We would rather pay a little bit more and be aware that the food is of higher quality, especially when we have a baby.
4. Subsistence
Of course, the most expensive monthly expenses in this country are the cost of living and food. Other costs, on the other hand, are calculated differently in the United States than in Germany.
After taxes, the cheapest cell phone contract in this area is $45 per month. with a flat rate for telephone calls, a flat rate for SMS messages, and 2GB of data for 30 days.
That’s fine in and of itself. However, there is no less expensive alternative. There will be no 10 euro offers from Lidl or similar stores.
The reason why it has to be so expensive baffles me completely. When it comes to pricing, it appears that the major corporations are also in agreement.
There has been a lot of discussion about health insurance lately, especially now that little Donald would like to abolish it all. We are fortunate in that my employer provides excellent insurance coverage.
However, despite the fact that we have the most expensive monthly package, we are required to pay an additional fee for each doctor visit.
You’ll have to recalculate 100-150 dollars per month from now on. I don’t want to be a source of dissatisfaction in this place, and I’m just grateful that we have reasonably priced health insurance. That is not always the case, however, in the United States.
Vacations in California are prohibitively expensive, especially for families. Of course, we’d like to see a little bit of our new home as well. You must, however, bring the necessary change with you in order to succeed.
In general, hotels and other forms of lodging are significantly more expensive in the United States than in Europe.
Our last vacation on Lake Garda was in a beautiful agritourismo, and we were able to get here for 60 euros per night. Unfortunately, we are unable to do so here.
You should budget between $150 and $200 per night for a hotel room. The range of AirBnB options is extensive, but there is a cost associated with them. Cali is a well-liked vacation destination for many people.
5. Social Support
It is not surprising that social assistance programs such as child benefit, care allowance, and the like do not exist in a state that wishes to abolish health insurance and cut all social payments.
If you get used to it, you won’t miss it nearly as much as you might think.
In addition, there are two arguments against
Why Is California So Expensive
6. Gasoline
Los Angeles is a car-centric metropolis. After a US auto industry front company bought out public transportation in the last century and slowly let it die, it is now virtually non-existent.
A few subway and bus lines are available. However, taking public transportation from us to the city center is nearly impossible (at least without walking 50 minutes).
Uber, Lyft, and taxis are the most common modes of public transportation. As a result, we are forced to use the car far more frequently than we would like.
The fact that the United States is such a car-centric country means that the automobile industry wants gas prices to remain stable and low.
At the moment, a gallon of gasoline (approximately 4 liters) costs $2.73. This is the equivalent of 72 cents per liter in US dollars or 0.60 euros per liter in Euros. You can drive there in your car.
And now you have to consider that California has the highest gasoline taxes in the country.
In Detroit, I can get a gallon of gas for less than $2. It’s no surprise that so many people drive around in Ford F350s. Of course, this has a positive financial impact on us.
7. Income
Finally, I’d like to highlight one more positive aspect. income. In general, wages for well-trained professionals are higher in the United States than in Germany. The significantly reduced taxes have now been added.
After all of the taxes, there is a lot more money than in Germany. There are also some excellent opportunities for pre-tax income investment.However, I believe I will be able to write a book on this subject in the near future.
When it comes to tax collection, California is once again at the top of the list in the United States. In some states, such as Florida, there is no income tax at all. Someone in Germany should think of something like this.
Why Is California So Expensive
Conclusion
After a year, we now have a good understanding of what it costs to live in California. Many things are different in the United States than in Germany, and we didn’t factor in some costs when we decided to visit.
If you’re thinking about moving to the United States or California, or if you’ve always wondered how much it costs to live in California, I hope this article was helpful.
When you first moved abroad, how did you feel? Which new expenses were you completely unaware of?
You Might Be Interested In:
