Forget LA And San Diego, This Is The Most Expensive City To Live In California In 2026

California is an attractive state for many people to live thanks to its abundant coastline, culture-rich cities, and job opportunities in a variety of industries (perhaps most notably tech and entertainment). But it's also expensive, so much so that Consumer Affairs ranked it close to last (No. 48 out of 50) in its 2026 list of best states to move to, giving it the worst affordability score of all states. While it's easy to think that all of the Golden State is pricey, the reality is that some cities are shockingly less affordable than others. Perhaps surprisingly, the city that packs the biggest punch to its residents' wallets is not Los Angeles, San Diego, or even San Francisco — it's San Jose.

Often referred to as the capital of Silicon Valley, San Jose is California's most expensive city to live in as well as the second-most expensive metropolis in the nation (behind only New York), per a 2026 SmartAsset analysis. Using the 50/30/20 budgeting rule, the analysis concluded that it would take a salary of $158,080 for a single individual to live comfortably in San Jose in 2026 and a whopping $402,771 for a family of four to do the same. Other California cities — Irvine, Anaheim, and Santa Ana — were all tied right behind San Jose with a $151,965 individual salary necessary for comfortable living. Meanwhile, the salary necessary for a family of four to live comfortably in these cities was $327,226.

With the highest living costs in the country, it should come as no surprise that San Jose also happens to be one of the most expensive cities to buy a house in. The average home price, as of July 2026, was over $1.4 million, according to Zillow, while Rocket Mortgage pegged the average monthly mortgage payment at just over $4,500, as of June 2025. Housing costs can, and do, vary quite a bit depending on things like square footage, neighborhood, and home features, but the general severity of costs in San Jose applies overall. San Jose also finds itself in the top spot on Remitly's 2026 global analysis of the least affordable cities for homebuyers. Out of 151 cities around the world, San Jose was deemed the hardest to purchase property.

While buying a home in some cities is actually cheaper than renting, this is not the case in San Jose, where renting is objectively more affordable. That said, the city, and larger Silicon Valley area are still considerably more expensive than the rest of California. According to Zillow, as of July 2026, the average rent for a studio in California is $1,784, compared to over $2,400 in San Jose. When you start adding bedrooms, San Jose ranges between $100 to nearly $1,000 more compared to the state overall.

Cost of living isn't just housing. Even routine grocery shopping in San Jose can put a sizeable dent in your budget. Food prices here are 14.5% higher than the national average, according to a June 2026 Kiplinger analysis, with residents spending an average of $1,407 on monthly grocery needs. Dining out is also expensive, with everything from casual lunches to upscale restaurants carrying premium prices driven by higher wages, rent, and operating costs. Even the comfort staple of pizza is not safe. Per a 2026 NetCredit study, San Jose and San Diego were the only cities in the nation where a medium cheese pizza averaged over $20 a pie (San Jose was slightly more affordable than its southern neighbor by 74 cents). Redfin likewise found that lifestyle expenses were 21% more expensive than the national average, with things like a haircut costing over 60% more.

Of course, a lot of this is due to the fact that San Jose is immersed in the wealth and tech money of Silicon Valley. The city's affluent residents have helped develop a strong luxury retail scene as well as demand for premium services. While bargains aren't totally dead, they would likely take some extra effort to hunt down. Even with high salaries in the tech sector helping to offset expenses for some residents, newcomers may be surprised by just how quickly everyday living costs add up.