Cost of Living

San Francisco's cost of living remains one of the highest in the country, due in part to the tight labor market and the high cost of housing, food and other consumer goods.

It is reported that Bay Area residents possess the third-highest discretionary income in the United States. This is due to the high percentage of an educated work force and the concentration of jobs in high-paying industries.

According to the Association of Bay Area Governments (ABAG), between 2000 and 2020, San Francisco will experience additional growth with an increase in household income by 23 percent - roughly $76,400 to $94,300 annually. ABAG cites the contrasting cities of Oakland, in the East Bay, and Atherton, on the peninsula in the heart of Silicon Valley. The ratio of 1995 average household income in Atherton to that in Oakland was 6 to 1; by 2020, it is projected to widen to 8 to 1. Though the scale is smaller, the pattern is the same between Tiburon, in Marin, and South San Francisco. In 1995, the average income in Tiburon was 2.5 times that of South San Francisco; by 2020 it is projected to grow to 3.5 times.

The San Francisco Center for Economic Development reports that the Bay Area housing market has experienced record-breaking appreciation. "Since 1993, San Francisco median home price has increased by nearly 96 percent, with the median home price in San Francisco currently standing at $543,000 and the Bay Area average at $403,000. The National Association of Realtors reports that the median US existing-home price is expected to reach $165,000 for 2003."

The increase in prices throughout the San Francisco Bay Area was directly related to the dot-com, high-tech bubble. According to a 2001 report of the Fisher Center for Real Estate and Urban Economics, beginning in 2001, price adjustments in the form of lower rental rates for residential and commercial office spaces and an increase in vacancies across the board reflected the downturn in the economy. "To the extent that real-estate prices were spurred by growth of the dot-com sector, these prices will also come down, even if growth continues to be positive overall," according to the Fisher Center Report.

For more information on calculating the cost of living in different communities, go to www.abag.ca.gov. Several online calculators are available to help you compare wages, relocation and housing costs, and other costs associated with US cities.

Mean Household Income by County

• Alameda
  • 2000 = $66,800
  • 2020 = $82,300
• Contra Costa
  • 2000 = $79,000
  • 2020 = $99,300
• Marin
  • 2000 = $100,600
  • 2020 = $124,200
• Napa
  • 2000 = $66,600
  • 2020 = $81,300
• San Francisco
  • 2000 = $68,500
  • 2020 = $86,400
• San Mateo
  • 2000 = $89,700
  • 2020 = $109,100
• Santa Clara
  • 2000 = $89.300
  • 2020 = $105,300
• Solano
  • 2000 = $60,400
  • 2020 = $75,000
• Sonoma
  • 2000 = $64,400
  • 2020 = $79,500