| Sunnyvale, CA | San Francisco, CA | Change | |
|---|---|---|---|
Home Price
|
$2,761,707.00 | $1,383,739.00 |
99.58%
|
Apartment Rent
|
$4,719.00 | $3,749.00 |
25.87%
|
Total Energy
|
$254.06 | $395.85 |
35.82%
|
Phone Bill
|
$170.27 | $205.06 |
16.97%
|
What major factors should I consider before relocating?
Besides cost of living expenses, there are other factors you’ll want to weigh when determining the best fit for you to relocate. Don’t forget to add these factors to your relocation pros and cons list before you pack your bags:
- Job opportunities
- State and local taxes
- Public transportation quality and access
- Parking availability
- Climate
- Public safety
- School quality
- Grocery store accessibility and dining choices
- Entertainment and culture options
How does income influence cost of living decisions?
Income plays a central role in cost of living decisions. After all, your paycheck largely determines how much you can afford to spend every month. For this reason, before buying a home, consider how secure you feel in your job.
Also, inflation is inevitable. So when deciding where to live, determine whether your income level will be able to keep pace with cost of living increases. Your income will also become stretched with childcare costs if you plan on starting or expanding your family, so factor that into your decision-making when investigating where you can afford to live comfortably.
How much should I spend on necessities including housing?
Regarding how much of your income you should apply to what costs, there’s a general principle known as the 50/30/20 budget rule. The guideline advises you to devote 50% of your post-tax income to must-have needs, 30% to wants and 20% to savings. So, housing costs fall into that 50% category.
Other necessities in the 50% “must-have needs” category include groceries, utilities, car payments and healthcare.
Should I rent or buy?
Buying a home is one of the most significant decisions you’ll make. Consequently, whatever the circumstances in the housing market, whether you should rent or buy is a highly individual decision. Each person must take stock of their financial health, lifestyle requirements and future goals.
For instance, if you need to stay in one location for an office job, plan to settle down and start a family or decide you prefer the stability and equity benefits owning a home offers, buying could be the right move if you have enough money to invest in homeownership.
On the other hand, if you need to be location-flexible or don’t have enough funds built up yet for a down payment, renting is probably the better option. However, if buying a home is in your plan, use this time to save by taking on a roommate, renting a cheaper apartment or moving in with family. Also, open a dedicated savings account to earmark money for your down payment.
What is the cost of living increase for 2024?
The Social Security cost-of-living adjustment (COLA)—which aims to counteract inflation—for 2024 is 3.2%. This is down from the 8.7% COLA in 2023. The new COLA will take effect in January 2024.
