Cost of Living in Sacramento, California in 2025

Sacramento, California Cost of Living: Quick Takeaways

Housing Costs: The average rent for a one-bedroom apartment in Sacramento reached around $2,430 in 2025.
Transportation Expenses: Public transit monthly passes cost approximately $100, with fuel prices about $4.93 per gallon.
Healthcare Costs: Employer-sponsored health insurance averages around $140.33 monthly, with Silver plans at about $621.
Income Levels: The median household income in Sacramento is approximately $71,074 in 2025.

Sacramento, California’s capital city, has a dynamic cost of living shaped by rising housing prices and various other expenses. This guide offers a detailed breakdown of the primary cost components locals face.

We analyze housing, transportation, groceries, healthcare, education, and more for Sacramento in 2025, helping you understand financial expectations in this urban hub.

1. Housing Costs in Sacramento, California

Housing is a major part of living expenses in Sacramento. Here's the average rent for a one-bedroom apartment over the years:

2010: Approximately $900
2015: Around $1,050
2020: Approximately $1,200
2024: Reached $2,136.50
2025: Projected to be $2,430

These figures show a significant rise, indicating growing demand and evolving housing market pressures in Sacramento.

Restaurants and hospitality businesses in Sacramento must account for these rising costs when planning compensation and recruitment budgets, to attract staff effectively in such a competitive market. For strategies on how to retain staff despite economic challenges, see our strategies to reduce restaurant employee turnover.

2. Homeownership and Real Estate Trends in Sacramento, California

For prospective homeowners, real estate prices have shown rapid appreciation:

2010: Median home price was about $150,000
2015: Increased to roughly $200,000
2020: Around $300,000
2024: Jumped to $570,500
2025: Expected to reach $713,052

This rising trend highlights the competitive market and higher costs for property acquisition in Sacramento.

For hospitality employers investing in real estate, understanding the broader hospitality real estate market trends can offer valuable insights into strategic positioning.

3. Transportation Expenses in Sacramento, California

Sacramento offers multiple transportation options that impact monthly expenses:

Public Transit: One-way fares average $2.50 with monthly passes costing about $100
Fuel Costs: The price per gallon in 2025 averages around $4.93
Vehicle Maintenance: Annual upkeep averages near $1,200

Costs vary according to commute patterns and vehicle use.

Transportation costs can also affect hourly wage calculations and employee punctuality in the hospitality sector. Understanding these can help in effective staff scheduling and retention. Related advice is available in our seasonal hiring strategies for top hotels.

4. Utility Costs in Sacramento, California

Typical monthly utility expenses for a standard apartment include:

Electricity: About $389.25
Internet: Approximately $80.43

The total utilities cost typically sums up to around $469.68 per month, influenced by consumption and providers.

5. Grocery and Food Expenses in Sacramento, California

Groceries in Sacramento are generally higher than many regions.

Monthly grocery costs average about $730 per person. Dining out costs are as follows: casual meals around $20 and mid-range restaurant meals near $77.50.

Since food costs are significant for both families and businesses, effective restaurant inventory and cost control can help. For practical help, read our spotlight on reduce food waste in restaurants.

6. Healthcare Costs in Sacramento, California

Healthcare expenditure includes premiums and out-of-pocket payments.

The average employer-sponsored health insurance costs roughly $140.33 monthly, while Silver plan premiums are closer to $621 monthly.

7. Educational Expenses in Sacramento, California

Education costs vary depending on the institution:

Public Schools: Typically funded through taxes with no direct tuition
Private Schools: Average tuition is near $27,000 annually
In-State Universities: Average tuition is about $6,381 yearly

These costs may fluctuate based on school choice and program.

8. Entertainment and Leisure in Sacramento, California

Sacramento offers diverse recreational options:

Movie Tickets: Approximately $13 each
Gym Memberships: About $49.83 per month
Mid-Range Restaurant Meal: Roughly $40 per meal

Annual spending on entertainment generally totals around $2,482, contributing to lifestyle quality.

9. Taxes and Miscellaneous Fees in Sacramento, California

Understanding tax obligations is important:

State Income Tax: Rates range from 1% to 13.3%
Sales Tax: Total of approximately 8.75%
Property Tax: Annual rate around 0.81%

These taxes affect both residents and business owners.

For restaurant owners, navigating tax responsibilities along with other financial matters can be complex. Visit our tax tips for restaurant owners spotlight for useful advice.

10. Childcare and Family Expenses in Sacramento, California

Families face notable childcare costs:

Daycare: Average monthly cost about $1,521
After-School Programs: Roughly $300 per month
Extracurricular Activities: Around $100 monthly

Budgeting for these is essential for family financial planning.

11. Clothing and Personal Care in Sacramento, California

Personal expenses in clothing and care contribute to living costs:

Clothing: Monthly spend averages $115
Personal Care Products and Services: Residents spend about $54 monthly

These vary with individual preferences and lifestyle.

12. Insurance Costs in Sacramento, California

Insurance costs cover various essential protections:

Health Insurance: Average monthly premium is $621 for Silver plans
Auto Insurance: Annual cost around $2,364
Homeowners Insurance: Approximately $1,951 per year
Renters Insurance: Around $180 annually

Insurance costs are necessary for security and compliance.

13. Miscellaneous Expenses in Sacramento, California

Diverse spending adds to overall cost of living:

Entertainment: Annual expenditure near $2,482
Personal Care Services: Roughly $768 yearly
Miscellaneous Goods and Services: Around $707 annually

These expenses vary widely depending on lifestyle choices.

14. Income and Salaries in Sacramento, California

Income levels provide important context for cost of living analysis. Median household incomes include:

2010: Approximately $46,000
2015: About $50,000
2020: Near $57,760
2023-2025: Roughly $71,074

These figures show steady growth reflecting economic conditions in the area.

For those looking for careers in hospitality in Sacramento, understanding salary expectations for roles like bartenders or restaurant managers is crucial. Our salary data pages can assist job seekers and employers alike in making informed decisions.

15. Comparison with National Averages

Comparing Sacramento’s cost of living to the national benchmark reveals notable differences:

Overall Cost of Living: About 26% higher than national average
Housing: Approximately 37% more expensive
Utilities: 71% higher
Food: 6% above average
Healthcare: Around 6% higher
Transportation: 44% above average
Goods and Services: 13% more costly

This highlights more expensive living relative to many other US locations.

Employers in Sacramento’s hospitality industry may face increased labor costs and challenges finding qualified staff. Check out our restaurant staff hiring spotlight for hiring strategies in competitive markets.

Our Methodology for Sacramento, California Cost of Living Figures

Our data comes from diverse credible sources including government databases, housing market analyses, reputable economic research, and industry reports. Some statistics are estimated when exact data is missing to best represent the cost landscape.

Sacramento, California Cost of Living: Conclusion

Sacramento’s 2025 cost of living is shaped by rising housing and utility expenses, elevated transportation costs, and moderate increases in healthcare and food prices.

Although incomes have increased, residents face higher overall costs than national averages, especially in housing and utilities.

Awareness of these factors can help residents and potential movers plan budgets and navigate expenses in California’s growing capital city.

Employers looking to hire in Sacramento should consider these economic factors carefully. For tips on how to post jobs effectively and attract candidates in hospitality, see our guide on how to post restaurant jobs for free.