San Jose is one of the most desirable locations to live in the Golden State. It’s a tech hub where the quality of life also matters.
As the third-largest city in the state and the largest city in the northern part of the state, San Jose is home to over 1 million residents. Located in Silicon Valley, the city is the tech hub capital of the United States. San Jose is home to tech giants like Facebook, Apple and Uber and hundreds of start-ups hoping to become the next unicorn.
San Jose has great weather, beautiful neighborhoods, top-rated schools and lots of things to do for entertainment. While it’s a great California city, it’s also one of the most expensive places on the living index.
San Jose compared to the national average is 9.4 percent more expensive to live in. San Jose’s cost of living has increased by 0.05 percent compared to last year, as well.
If you’re looking to call San Jose home, it’s smart to know how much you’ll spend on monthly rent and other living expenses. We’ll walk you through the cost of living in San Jose so you can know your estimated monthly costs and make an informed decision about living in one of San Jose’s neighborhoods. Here’s what we’ll cover:
San Jose cost of living
Regardless of what city you live in, you’ll need to know the cost of living and compare it to your current salary. From average rent to the cost of gas and groceries, the average costs of everyday goods can help you determine if you can pay for your bills and live comfortably with the costs associated with rent in San Jose and other activities associated with the cost of living. San Jose apartments cost an average of $3,702 per month.
Housing costs
Let’s start by looking at housing costs in San Jose so you have a better understanding of the average apartment rent and how the average rent in San Jose compares to other major California cities.
Housing prices are 34 percent more expensive in San Jose compared to the national average. But, they were down 4.5 percent year-over-year, according to data.
The average rent is $3,702, While housing prices vary for a studio apartment, one-bedroom apartment or two-bedroom apartment, apartments are generally pricier compared to other cities.
Average rent prices in cities near San Jose
Like any other location, renters will find that prices vary depending on the number of bedrooms and which neighborhood your apartment is in. San Jose has expensive neighborhoods and more affordable neighborhoods to choose from. You can compare rent for an apartment in San Jose to other California cities:
- Los Angeles rent: $2,770
- Oakland rent: $2,663
- San Francisco rent: $3,702
- Orange County rent: $2,476
- Sacramento rent: $2,051
Apartments vary in size and price, but with so many options to choose from, you can likely search for one that fits your needs, is in the right price range and allows you to pay the rent on time each month.
Housing prices
Buying a house can cost an arm and a leg, depending on your budget. The median sale price of a home in San Jose is $1.375 million, according to data from Redfin.
Houses are on and off the market quickly with most house listings staying on the market for only eight days. After all, Silicon Valley is one of the best places to live and people want to sign the mortgage quickly when they find their dream home.
Be prepared to pay a hefty price for a home in San Jose as the expenses in this city are some of the highest in the world.
Food costs
We all need to eat, but the question is can you afford the food and restaurants in San Jose? Groceries are 30.4 percent more expensive here. How expensive are we talking? You’ll pay $2.94 for a dozen eggs, $2.55 for a gallon of milk and a whopping $16.71 for a steak.
Restaurants can also be expensive, but San Jose has a variety of places to dine that vary in price and match your budget. According to data on Yelp, you’ll pay between $50 and $75 at restaurants for dinner for two. You’ll also need to figure in a service tax or tip when thinking about a food budget.
Utility costs
You may have found the perfect one-bedroom apartment in the city but you must figure out the price you’ll pay for utilities. Basic utilities include gas, electricity, water, sewage and internet.
- Total energy bill average: $266.44
- Phone: $196.49
- Other: $73.93
San Jose residents will pay 33 percent more in utilities compared to the national average, but data shows that utilities are down 3.12 percent compared to last year.
Transportation costs
Transportation is 43 percent more expensive in San Jose compared to the national average. The average gas price has been $4.025 a gallon but that may fluctuate. There are other modes of transportation and it’s smart to know how much each will cost.
Average cost of a car
Owning a car in California costs the average owner $459 a month, according to data from Move.org. For example, a tire rotation will cost you $69.34. Then, there’s the monthly car payment, gas, maintenance and repairs and you can see how car prices are more than the national average.
Walking and biking
If you’re looking for ways to save some money on transportation expenses, you can consider walking or biking throughout the city. With a walk score of 62 and a bike score of 69, it’s a fairly walkable city to navigate by foot (or two wheels).
Public transit prices
You can use VTA or Valley Transit Authority to get around San Jose. A single ride is $2.50 and a monthly pass is $90. You can spend $990 on an annual transit pass with VTA.
Healthcare costs
Before we talk about the cost of health care in San Jose, it’s important to note that healthcare costs can vary greatly based on your specific health issues and the insurance plan you have.
However, here’s the data for San Jose for typical doctor service. A visit to your doctor will run you an average of $148.50. A visit to the dentist to check your pearly whites will cost an average of $133.23. And, if you need prescription drugs it’ll cost an average of $479.93. The good news is that an ibuprofen bottle is less expensive at $12.21 a bottle.
Cost of goods and services
From foodies to San Jose Sharks fanatics, there’s plenty to do in this lovely northern city. In addition to budgeting for your apartment, you’ll want to track expenses for goods and services, too.
Goods and services are 22.5 percent more expensive compared to other cities. For example, an evening at the movies will cost you $16.04 a ticket. Looking to get your downward dog on? Expect to pay $20.50 for a session at the studio. And, if you want to see those hockey Sharks play, plan on spending $50 to $75 for a ticket.
Taxes
Here’s the tax breakdown in Silicon Valley. Sales tax is 9.375 percent — 6 percent state sales tax, 0.25 percent county, 0.24 percent San Jose and 2.875 percent special tax.
So, if you purchase something for $100, you’ll pay a total of $109.375 after tax.
How much do you need to earn to live in San Jose?
In San Jose, the annual salary is right around $117,324. If you follow best practices for budgeting, you’ll only spend 30 percent of your salary on rent. That means that renters living in the city should spend no more than $32,700 annually on rent, or $2,725 monthly.
If your salary isn’t comparable and makes the average monthly rent too expensive, then you should look to rent in a less expensive neighborhood or consider a studio apartment that will make living in San Jose more realistic and won’t break the bank.
You can use our Rent calculator to determine if your salary allows you to live in the most expensive neighborhoods.
Understanding the cost of living in San Jose
If Silicon Valley is calling your name and the cost of living is within your budget, then it’s time to start the search for an apartment in your free time. Rent in San Jose is more expensive than the national average, but it’s one of the most desirable places in the world to put down roots and call home. Determine how many bedrooms you want in your apartment and then, you can find apartments for rent in San Jose to call home.
Cost of Living Index comes from coli.orgThe rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent.com as of March 2022.Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com