The Cost of Living in Silicon Valley

In years past, the San Francisco Bay Area—and particular Silicon Valley—has been ranked among the most expensive areas to live in the U.S. With the recession, how do those comparisons hold up today? Is this region still more expensive than Denver, Boston or even New York?

Just for fun, we thought we’d find out. We took a look at someone with a $60,000 salary in San Jose, Calif., compared to someone making that same salary in several other cities. What did we find out? This area is still, by far, one of the most expensive places to live. The main factor? You guessed it—housing. The only city we found that was more expensive was New York—and not by much. Check out the comparisons below.

If you’d like to do your own city comparisons, go to Sperling’s Cost of Living Calculator.

What is the overall outlook for a city like San Jose? According to the Sperling’s Best Places overview:

• The median home cost in San Jose is $544,640. Home appreciation the last year has been -19.50 percent.
• Compared to the rest of the country, San Jose‘s cost of living is 61.51% higher than the U.S. average.
• San Jose public schools spend $5,331 per student. The average school expenditure in the U.S. is $6,058.
• The unemployment rate in San Jose is 11.00 percent (the national average is 8.50 percent). Recent job growth is negative: San Jose jobs have decreased by 0.90 percent.

The numbers may not put San Jose and the greater Bay Area in the best light when it comes to cost of living, but the truth is those of us who live here do so with the acknowledgement that our expenses are much greater than elsewhere in the country for many reasons.

We stay because the Bay Area is the epicenter of innovation and education; despite the recent downturn in the economy, the area has a rich history of offering many entrepreneurs and job seekers plenty of opportunities. (Lots of people have found their fortunes here with start-ups, stock options and, until recently, real estate.) We also have incredible access to mountains, beaches, wine country, snow, and major metropolitan cities with numerous cultural venues, restaurants, shopping, waterways and more. (You could ski in Lake Tahoe in the morning and make it back to San Francisco for an evening on the town.) In addition, we enjoy some of the best weather in the country. (It’s downright warm here in December.) Yes, it is expensive to live in the Bay Area, but there are also many factors that compel many of us to stay.

But, if you ever consider moving, try the Sperling’s Cost of Living Calculator to see where you could get more bang for your buck.