Is California getting expensive?
Monthly Home Payments Have Grown Much More Than Wages and Rents. Housing Costs Have Grown More Quickly Than Wages. Since January 2020, California housing costs—especially the costs of purchasing a home—have grown more than California wages, as shown above. California’s high cost of living stems from multiple factors, including housing and rent, groceries, utilities, and more. With limited land available, restrictive zoning laws, and strict environmental regulations, it is expensive to build and buy a house in California.California’s overall cost of living index is around 45% higher than the national average. The biggest cost driver is housing, which is more than twice as expensive as the national average. California is so expensive because housing demand is outpacing supply, and high wages mean people can afford to pay higher prices.