3 of America’s 5 Most Expensive Cities Are in California
Everyone knows California isn’t cheap.
But just how expensive has it become?
Three of the five most expensive cities in America are located in California, and Southern California communities appear throughout the broader list.
The estimated annual cost of living in some of the state’s most expensive communities shows just how significant the gap has become.
California’s Most Expensive Cities
At the top of the California list is Atherton, where the estimated annual cost of living is a staggering $619,161.
It’s followed by Los Altos Hills at $447,002 and Beverly Hills at $442,099.
Several Southern California coastal communities aren’t far behind:
| City | Estimated Annual Cost |
|---|---|
| Atherton | $619,161 |
| Los Altos Hills | $447,002 |
| Beverly Hills | $442,099 |
| Newport Beach | $334,518 |
| Malibu | $295,157 |
| Manhattan Beach | $263,140 |
| Laguna Beach | $248,349 |
| Coronado | $235,220 |
| Palos Verdes Estates | $225,619 |
| Santa Monica | $213,918 |
| Solana Beach | $213,207 |
| Hermosa Beach | $200,453 |
| Coto de Caza | $176,273 |
Housing Is a Major Reason
The biggest factor driving many of these numbers is housing.
That’s particularly apparent when you look at the communities represented. Newport Beach, Malibu, Manhattan Beach, Laguna Beach, Coronado and several others are coastal markets where real estate regularly commands a significant premium.
But housing costs don’t exist in isolation.
Higher housing expenses can influence how much households need for everything from property taxes and insurance to transportation and everyday living expenses.
Orange County Is Well Represented
For Orange County residents, three names immediately stand out.
Newport Beach: $334,518 per year
Laguna Beach: $248,349 per year
Coto de Caza: $176,273 per year
The difference between the three is also a reminder of how dramatically the cost of living can vary even within the same county.
California is often discussed as one expensive housing market, but the reality is much more local.
What Does This Tell Us About California?
These numbers aren’t necessarily saying that every person living in Newport Beach actually spends $334,518 every year.
They’re estimates designed to compare the cost of maintaining a particular standard of living across communities.
Still, seeing the numbers together provides some perspective on just how expensive many California communities have become, particularly in areas where housing costs have increased dramatically over time.
For homeowners, that rise in housing costs may also mean they’ve accumulated substantial equity.
For buyers, it illustrates why location can have such a dramatic effect on the income and budget needed to purchase a home.
And for anyone living in California?
It makes the phrase “California is expensive” feel like a bit of an understatement.
Which city on the list surprised you the most?
