Sacramento Cost of Living

What living in Sacramento costs

Sacramento runs at 1.10x the US national average — 16 of the 99 other metros tracked here cost more, 80 cost less. A one-bedroom goes for about $1,650 a month, or $19,800 a year, and the median home sits near $500,000.

The price-to-rent ratio here is roughly 25, which is high. Above about 20, renting and investing the down payment usually beats buying over a normal holding period — the purchase price is steep relative to what the same property earns as a rental.

Working and living here

Sacramento is a metro of roughly 2.4M and growing steadily, running on state government, healthcare, technology. Larger employers include State of California, UC Davis Health, Sutter Health.

California taxes income at the state level, and Sacramento adds no separate city tax. Cost-of-living indexes exclude income tax entirely, so compare after-tax figures rather than index ratios when weighing this metro against one in a no-income-tax state.

Getting around: Sacramento is served by limited transit. Budget for a car — around $9,000 a year all-in once insurance, fuel, maintenance and parking are counted, a cost the index assumes but does not itemise.

Climate: Mediterranean climate with cool wet winters near 40°F lows and hot dry summers with July highs often exceeding 93°F.

As California's state capital, state government is the single largest employment sector, giving the local economy unusual insulation from private-sector downturns.