If you’re thinking of going to the beaches in California, make sure you look at your monthly budget.
Housing Costs in California
Despite the fact that California has over 14 million housing units, it will be difficult to rent or buy a home for less than $1,000 per month (per the latest census data). In October 2021, Redfin estimated the median sale price of California homes to be $700,000, compared to a national median of $353,900 that month, and the California Association of Realtors forecasted a state median of over $800,000 in 2022.
According to 2019 data from the US Census Bureau, here’s what housing costs look like on a monthly basis:
The cost of a home in this state can vary substantially. According to Zillow, these are the average property prices in 20 major California cities in September 2021.
Groceries & Food
California’s average annual non-restaurant food expense per person, according to the Bureau of Economic Analysis, is $3,630. This works out to $302.50 per month per person. The average household of four might spend $1,210 on groceries every month.
Food prices vary depending on where you reside in California. The Council for Community and Economic Research, which assesses the cost of food in major American cities, has published the cost of groceries in California cities for the second quarter of 2021, from lowest to highest.
Transportation
California is known for its horrible traffic from San Diego to Sacramento, so plan on spending a lot of time in the car. What will all that commuting time set you back?
How much transportation will cost you in California depends on how many children you have and how many working adults you have in your family. The results of MIT’s Living Wage Calculator might give you an idea of what to expect in terms of costs.
Health Care
The average yearly cost of health care in California is $7,638 per year, according to the Bureau of Economic Analysis’ Personal Consumption Expenditures by State report from 2020.
Your personal health care demands and coverage, of course, have a significant impact on how much health care will cost you each year.
Child Care
California’s average monthly child care costs range from $1,269 to $1,785 per child.
It’s no secret that one of the most significant monthly expenses is child care. What you can anticipate to pay in California varies on your child’s age and whether you want to have home-based family care or not.
It’s worth noting that by 2025, the state intends to provide free universal pre-K to all 4-year-olds.
Taxes
Residents in California are accustomed to paying huge tax bills. For those at the top of the graduated-rate income scale, state income taxes can reach 13.3 percent.
According to the Tax Foundation’s State Individual Income Tax Rates and Brackets for 2021, this is the highest state income tax rate in the country. Of course, the majority of earnings must still pay federal income taxes.
Consider moving to Florida, Tennessee, Texas, South Dakota, Wyoming, Nevada, Washington, or Alaska if you don’t want to pay state income taxes.
Miscellaneous Costs
It’s evident that knowing how much the necessities (food, rent, utilities, etc.) will cost you is critical, but we don’t simply buy necessities. What would be the point of that?
Personal expenditures per Californian are estimated to be $25,138 per year, according to the Bureau of Economic Analysis.
Let’s take a closer look at what you could do with some of that cash (prices are current as of November 3, 2021):
- One-day Disneyland tickets cost $104 or more, depending on the day and ticket type.
What state has the most expensive water bill?
The average monthly water bill in the United States varies substantially. In 2021, West Virginia will have the highest pricing in the US, at 72 dollars per month.
How much does water in Los Angeles cost per month?
With the new rates, a customer in East Los Angeles with a typical 5/8 by 3/4-inch meter who consumes an average of 9,724 gallons (13 Ccf) per month will pay $58.84 in service and quantity charges. The identical us- age would cost $50.08 with the low-income discount.
How much does a typical water bill cost?
The average American family uses 300 gallons of water per day, according to the Environmental Protection Agency (EPA).
16 That’s enough water to fill a six-person hot tub, to put it in context.
Water costs are also on the rise. In fact, between 2010 and 2015, it increased by 41%, with sewage charges and taxes increasing even more substantially. 17 Since 2015, the rate of increase has moderated, although prices have continued to rise.
In California, how often do you pay your water bill?
Every two months, all residential customers receive a bill. Hover, tap, or click the areas of the bill you’re interested in for details of fees and charges.
How much does a gallon of gas cost on average in California?
Before signing a year-long lease, always read the fine print. Is your rental firm, for example, included utilities like sewer in your rent? Many people do. However, if it isn’t covered, it might add $35 to $60 to your monthly costs.
Electricity
Keeping the lights on and all of your electronic devices charged can be costly. Heating, cooling, electronics, appliances, and lights are all examples of electricity. You may have greater heating expenditures if you live in Northern California’s cooler, windier climate. During the hot summers in Los Angeles, residents may require extra air conditioning. Your electricity bill can range from $100 to $150 depending on how much room you’re heating and cooling.
Natural Gas
Water heaters, fireplaces, grills, furnaces, gas ranges, and ovens are all examples of gas-fueled appliances in your residence. Your bill will be determined by the price of natural gas and the number of natural gas-powered appliances or systems in your flat. The average monthly gas bill in California is $35, although it can range from $3 to $60.
Water
The average American family uses roughly 300 gallons of water every day, resulting in a monthly bill of around $65 for everything from daily dishwasher runs to evening washing to regular toilet flushing and long, hot showers.
Cable and Internet
Even if you’ve already dropped cable in favor of streaming services, your internet expenses will vary significantly based on your speed and connection type. In general, expect to pay $40 to $60 per month. If you want to keep regular cable, add extra $40 to $60.
How do you figure out the cost of utilities?
While it’s difficult to predict how much your electric or water bill will cost each month, credit counseling firms recommend allocating 5% to 10% of your annual income to utilities.
Is water in California expensive?
Californians are paying more for water for a variety of reasons. For starters, much of the state is either desert or has an arid Mediterranean climate, making water inherently scarce. Large infrastructure investments are required since water must often be collected from remote sources, and most of this infrastructure is old. Many water agencies, according to Gomberg, are catching up on postponed repair of pipes, pumps, and wells and passing on the expenses to their customers. Water has been contaminated in some places and must be treated, which is another cost that is transferred through home water bills.
“However, climate change is one of the major factors,” Gomberg explains. “Climate change is increasing the variability of hydrology. Droughts are lasting longer and hotter spells are becoming more common. Water districts that used to be able to rely on rain and stable groundwater reserves are no longer able to do so.”
Hundreds of residents in the small San Joaquin Valley villages of Cantua Creek and El Porvenir are paying above-average rates for water that they can’t even drink. Erica Fernandez Zamora, a policy advocate with the Leadership Counsel for Justice and Accountability, claims that the scenario violates the California Human Right to Water Act of 2012, which stipulates that “every human being has the right to safe, clean, cheap, and accessible water.”
Both Cantua Creek and El Porvenir receive water from Fresno County through the Westlands Water District, a prosperous agricultural region that receives water from the federal Central Valley Project managed by the United States Bureau of Reclamation. The drought of 201216 impacted supply, leading Westlands to increase their prices. As a result, the 600 residents of Cantua Creek and El Porvenir were hit with rate hikes that they didn’t think they could afford.
For water that the state considered dangerous, rates were $110 per month in El Porvenir and $72 per month in Cantua Creek. When the state was faced with water shutoffs, it stepped in with emergency money to help cut expenses and offer bottled water, but the grants are set to expire this spring.
However, the San Joaquin Valley isn’t the only place where water is expensive.
According to the water news organization Circle of Blue, water rates in Los Angeles increased by 71% between 2010 and 2017. The most significant rise was for four-person homes who consumed 100 gallons per capita per day, with monthly water expenditures rising from $58.49 to $100.14. During the same time period, water rates in San Francisco jumped by 119127 percent (depending on usage). For a family of four utilizing 150 gallons per person per day, monthly bills jumped from $86.31 to $195.86. Rates increased $30.63 to $67.07 for individuals utilizing only 50 gallons per person per day. Both cities have invested heavily in infrastructural improvements.
The cost of water has risen even in relatively affluent local communities. One example is the wine country town of St. Helena in the Napa Valley, which is undergoing infrastructure enhancements.
According to Geoff Ellsworth, a member of the St. Helena City Council, “our rates are now two-and-a-half times those in the city of Napa.”
Senator Bill Dodd of Napa, a Democrat, has sponsored legislation that would make it more difficult for utilities to cut off water service to people who are unable to pay their bills. Cellphone businesses, he claims, are currently subject to more stringent limitations when it comes to shutting down services than water utilities.
The state pays more than $2.5 billion each year to help low-income citizens with gas, electric, and telecommunication services, according to the water board, but more than half of the state’s residents have a water supplier that does not provide low-income clients pricing assistance.
Senate Bill 998, presented by Dodd, aims to model California’s water supplies more closely after electricity and phone services, where failure to pay bills may result in soft enforcement – first warnings, then appeals and, most likely, fines. Phone and electricity providers only stop service as a last resort, he argues.
In the case of water supply, however, missing a payment deadline might result in dry taps in as little as a few days, according to Dodd. If a consumer fails to pay a bill, his proposed law would prevent service interruptions for at least 60 days. It would require advance written notice before service could be terminated, and it would make it illegal to turn off water supply to the sick or old if a local health department concludes that doing so would pose a major health risk to them.
The bill, which is presently pending in the Senate, would also give explicit instructions on how to restore lost service and waive reconnection fees for low-income homes.
According to Dodd, many of California’s poorest residents pay as much as a fifth of their income for water. According to a news statement from his office, household water supplies were halted for more than 8,000 residences in 2015 due to delinquent fees in the East Bay Municipal Utility District, which serves 1.4 million people. The utility’s board of directors voted in July 2017 to raise rates by 19 percent over two years.
More than 400 large public water agencies serve California. Many individuals also get their water from private wells or modest water systems. This fragmented approach makes it difficult to provide water to everyone in an equitable manner.
“It’s nice to have this right established on paper,” Dodd says of the state’s Right to Water law. “But it’s more vital to have that right realized.”
Do Californians have to pay for their water?
California proclaimed the right to safe, clean, cheap, and accessible drinking water a human right in 2012. Dodd introduced legislation in 2015 to investigate the feasibility of establishing a statewide water bill assistance program.
Californians acquire their water from a jumble of over 2,900 community water systems. Some are run by cities, while others are run by private utilities. Some rely on subsurface water, while others rely on rain and snow. Thousands of people service a few hundred people. Some serve tens of thousands of people.
Hundreds of systems fail to keep toxins below state and federal limits as California’s water infrastructure ages and federal funding declines. Some deliver water that has been contaminated by hazardous chemicals released by wildfires, while others deliver water that has been contaminated by “forever chemicals.” A million Californians do not have access to safe drinking water.
Water systems hike rates to pay the cost of renovations. In 2015, the average Californian spent 45% more for drinking water than in 2007.
California, unlike other utilities, does not provide statewide water bill assistance. Only about half of Californians have access to water from a system that provides any. Most smaller systems are unable to do so. Those that do provide minimal assistance to a small number of people, such as San Francisco, where only 4.5 percent of eligible consumers receive assistance.
As a result, less than 20% of low-income homes receive any aid, and water shutoffs have been a problem in California since before the coronavirus. According to the water board, at least 500,000 people had their water switched off in 2019.
“We were already worried,” board chair E. Joaquin Esquivel said, “but the pandemic has exposed the stress cracks even more.”
Will water systems survive the debt?
Water quality may be jeopardized as a result of the increasing debt. According to the water board, about 130 systems, largely servicing low-income communities, may require emergency assistance by May. It’s possible that those approaching 60 will require it sooner.
The California Safe and Affordable Drinking Water Fund, which receives $130 million a year, may be able to assist them, but the water debt “dwarfs” it, according to Esquivel. In theory, if systems cut treatment, this type of income loss might deteriorate water quality.
That isn’t occurring right now, and the state would intervene if required, according to Polhemus.
Laurel Firestone, a member of the state board of directors, cautioned that in the past, panicked water providers have prioritized financial survival before customer health. In 2014, the city of Flint, Michigan switched drinking water supply to save money, resulting in widespread lead contamination among the city’s predominantly Black citizens. As the city fell bankrupt the same year, Detroit aggressively turned off households’ water as a debt collection strategy.
Possible solutions
SB 223 requires water companies to offer 12-month repayment plans, waive disconnection and reconnection fees for low-income households, and wait until a client is four months late and owes more than $400 before turning off the water, among other safeguards.
SB 222 would establish Dodd’s proposed water affordability aid program, which he proposed in 2015. However, there is one major stumbling block: no money is identified.
Dodd expects to reach a consensus on the use of public funds in the end. For the time being, the initiative may rely on private donations and federal cash, since President Joe Biden has suggested a $5 billion power bill assistance program.
What is the most expensive utility?
1. Hawaii: Hawaii’s main culprits are electricity and natural gas, both of which are among the most expensive in the US. The average monthly cost of electricity is $300.04, while natural gas is $232.20. This helps to explain Hawaii’s high average monthly power bill of $730.86.
3. Rhode Island: Natural gas and internet expenses in Rhode Island are among the highest in the US, ranking fourth and second, respectively.
4. Connecticut: Natural gas costs an average of $114.11 per month in Connecticut, which is more than the national average. Connecticut’s average electricity cost of $187.29 is very high, ranking third in the country.
5. New York: The average cost of electricity in New York is $173.84 per month. This helps to explain why the average monthly utility expenses in the state are so high.
6. New Hampshire: At $169.35 and $107.67, respectively, New Hampshire’s electricity and natural gas costs are higher than the national average.
8. Massachusetts: Electric bills in Massachusetts are among the highest in the country, averaging $185.05 per month.
9.Vermont: Monthly electricity and natural gas bills in Vermont are higher than the national average, at $160.20 and $110.43, respectively. As a result of this combination, this state is ranked eighth on this list.
10. Maine: Maine is at the bottom of the list of states with the highest utility costs. Maine residents may see why they’re in 10th place by looking at their average natural gas and electricity rates, which are $146.30 and $132.04, respectively.
2. Utah: Utah has below-average power, natural gas, and internet service. At $52.33 per month, natural gas is the second most cheap fuel in the US.
3. Montana: Montana is the third-cheapest state for utility expenses, with natural gas costing an average of $52.12 per month in 2018, the lowest rate in the US.
5. Nevada: Low natural gas prices are a major element in Nevada’s ranking as the fifth most cost-effective state in the United States. Electricity is also reasonably priced here, costing an average of $101.71 per month in 2018.
6. Louisiana: The average monthly electric bill in Louisiana was $86.83 in 2018. Because of this, the state was ranked sixth most economical in terms of monthly utility expenses.
7. Oregon: Residents of Oregon are lucky in that their monthly electricity and natural gas bills are lower than the national average. As a result, the state boasts some of the most affordable monthly utility costs in the country.
8. South Dakota: While their power rates aren’t particularly cheap, residents of South Dakota pay less for internet service and natural gas than the majority of their countrymates.
9. Arkansas: With an average monthly electric bill of $89.52, Arkansas is one of the lowest-cost states in the US. The average internet bill in the state was $51.04 per month, which placed 48th in the US.
10. Wisconsin: In 2018, Wisconsin’s monthly power expenses were among the highest in the country, but internet connection and natural gas costs were significantly lower than the national average.