Price of gas for your daily San Rafael to Santa Rosa commute putting a crimp in your bank account? For those looking to put their Terra Linda Eichler on the market and relocate to areas easier on the wallet, think again. The North Bay may be one of the more pocketbook-friendly regions in the state, according to a new report.
Recently released findings from economics website smartasset.com ranks Marin and Sonoma counties among the top 10 places in California with the greatest purchasing power—having a high per capita income relative to the cost of living.
Marin County’s median income of $142,000 and cost of living of $89,000 registered an 81.19 on the purchasing power index—a third place finish among 58 California counties. Sonoma County’s $99,000 median income and $66,500 cost of living earned a 73.44 on the PPI, or seventh place.
Topping the index at 87.84 was San Francisco’s $137,000 income and $82,000 COL, with San Mateo County ranking second at 83.42. Santa Clara County ranked fourth, despite having the state’s highest median income of $154,000 (the Silicon Valley locale was weighted down by also having the highest cost of living, $98,000).
Napa County ranked 21st ($106,000 income vs. $77,000 cost of living); Sacramento posted similar numbers, ranking 19th.
For context, an area barely squeaking by financially is 58th-ranked Trinity County, where a $44,000 annual cost of living doesn’t leave much over from a $47,000 median income.
Median is the number smack dab in the middle of a ranking—so an area’s median income will have half of all incomes ranked lower and half ranked higher. (It’s considered more accurate than mean, or average income, which can be impacted by a handful of extremely high salaries.)
The purpose of the study was to identify the places where average living expenses are most affordable for the people living there, officials at smartasset said in an announcement of the results, which can be viewed at smartasset.com.
“We calculated two different cost-of-living metrics for a household with one adult and no dependents,” smartasset explained in the announcement. “One reflected the baseline cost of living in each location and the other reflected expenditures typical to someone making the county’s median income.”
Researchers then combined the two numbers using a weighted average based on how close each county’s per capita income was to the minimum livable income in that area. They also factored income taxes paid in each area in the score.
“The biggest expenses we all face can vary significantly from one place to another,” smartasset said. “Therefore, it’s incredibly important to plan ahead before your big move. If not, you might be overwhelmed by higher costs in your new home.”
What’s factored into ‘cost of living’ expenses?
Cost-of-living calculations focus on so-called “necessities.” People can vary on how much they spend on entertainment or gifts, but pretty much everyone requires housing and toilet paper. Here are the basic necessities factored into an area’s typical cost of living:
- Housing
- Food
- State and local taxes
- College education
- Childcare
- Transportation
- Healthcare
- Extras (occasional but necessary purchases such as clothing, cell phone, computer, personal care items and household cleaning products)
