At the foothills of the San Gabriel Mountains, Pasadena, CA, exudes a charm that draws residents from all corners of the country. Known for its rich history, cultural vibrancy, and picturesque neighborhoods, Pasadena has urban amenities and suburban tranquility. Whether it's the annual Rose Parade, the historic architecture, or the bustling shopping districts, there's always something that captivates those who visit. Living in Pasadena means enjoying sunny weather year-round, access to top-notch schools, and a community that values art, education, and outdoor activities. In the following sections, we will delve into what it truly costs to live in Pasadena, providing a comprehensive guide to help potential residents make an informed decision.
The cost of living
Understanding the cost of living in Pasadena is essential for anyone considering a move to this beautiful city. Pasadena's cost of living is higher than many other parts of the country, with expenses averaging 59% above the national average and 17% higher than the California state average. The cost elevation reflects the city's desirable location, amenities, and overall quality of life. Despite the higher living costs, California's state taxes are the eighth lowest in the United States, providing some financial relief to residents. Additionally, Pasadena boasts a relatively high average salary of $74,341 per year, which helps to offset some of the increased expenses.
Employment opportunities in Pasadena are robust, although the city has an unemployment rate of 5%, slightly above the national average. It is a competitive job market with opportunities in various sectors, from technology to education. For families, daycare and preschool costs average $1,610 per month, reflecting the high demand for quality early childhood education in the area. The relatively low state taxes, competitive salaries, and abundant amenities make it a worthwhile consideration for those seeking a vibrant and fulfilling lifestyle.
The cost of housing
Housing costs are a significant consideration when evaluating the cost of living in any city, and Pasadena is no exception. As of 2023, the median home price in the United States is $412,000, a modest 2% increase from the previous year. However, the housing market has experienced a squeeze, with 300,000 fewer homes available, pushing prices upward across the country.
In California, the median home sale price is $787,000, reflecting the state's overall higher living costs and real estate demand. Yet Pasadena surpasses this, with the median home sale price of $1,230,000. It represents a 4% increase over the previous year, highlighting the city's strong and growing appeal.
The competitive nature of the Pasadena housing market is evident in its sale trends. Over half (50.6%) of homes in Pasadena are sold above the list price, indicating a highly competitive market where buyers are often willing to pay more to secure their desired property. This is underscored by the sale-to-list price ratio, which is 104.3%. Essentially, homes in Pasadena frequently sell for more than the asking price, emphasizing the demand and value placed on properties in this area.
How Pasadena compares to nearby cities
When considering a move to Pasadena, comparing its cost of living and housing prices with nearby cities such as Glendale and La Canada Flintridge is helpful. In Glendale, the cost of living is 61.7% above the national average, necessitating an average income of $200,520 for a family and $82,000 for a single person to live comfortably. The median home price in Glendale is $1,046,500, which is lower than Pasadena's median home price of $1,230,000.
On the other hand, La Canada Flintridge's cost of living is also 61.7% above the national average. To maintain a comfortable lifestyle, a family would need an annual income of at least $391,320, and a single person would require $105,600. The median house price in La Canada Flintridge is $2,041,900, higher than both Pasadena and Glendale.
A snapshot for real estate investors
In Pasadena, the median rent is $2,650 per month, which has remained stable over the past year. With 42% of homes being owner-occupied, this stability in rental prices presents a unique opportunity for real estate investors. High rental costs and a significant portion of rental properties suggest a robust investment market where steady rental income can be expected.
For potential homeowners, it highlights the long-term financial benefits of owning property.
Unlike renting, which does not build personal wealth, owning a home in Pasadena can be a strategic move to accumulate equity and financial stability over time. Real estate investors should consider this an attractive prospect for growing their portfolios, leveraging the city's stable rental market, and appreciating property values.
Utility costs
Utilities in Pasadena are higher than the national average, particularly electricity. The average cost of electricity in Pasadena is 34.31 cents per kilowatt hour, which is 109% more than the national average. Despite the higher rates, Pasadena's sunny climate offers an advantage for those considering solar energy, with an average annual solar radiation value of 6.21 kilowatt-hours per square meter per day.
Residential natural gas prices have increased approximately 12% from $17.56 per Mcf in 2023 to $19.65 per Mcf in 2024. These utility costs underscore the importance of energy efficiency. They may encourage homeowners and real estate investors to consider sustainable solutions like solar panels to mitigate expenses and enhance property value.
The cost of food
Food expenses in Pasadena reflect the city's vibrant culinary scene and access to high-quality ingredients. The average monthly cost for one person is $617; for a family of four, it's $1,600. Dining out in Pasadena offers a delightful experience, with an average dinner for two costing around $64.60, showcasing the city's diverse and delicious dining options. Everyday grocery items are readily available, with a quart of milk costing $1.27, a loaf of bread at $4.71, and a dozen eggs priced at $5.04.
Transit costs
Transportation expenses in Pasadena are manageable. A single person spends about $58 per month on transportation, while a family of four spends around $158. Gasoline prices in Pasadena range between $4 and $5 per gallon. For those who prefer public transportation, a monthly ticket costs $51.70. Understanding these expenses helps paint a comprehensive picture of the day-to-day costs of living in Pasadena.
Healthcare costs
Healthcare expenses in Pasadena reflect the city's high-quality health services. A typical doctor visit costs around $128, an essential factor for residents to consider when budgeting for medical care. Maintaining a healthy lifestyle also comes with its own costs; a monthly gym membership averages $35.10. These healthcare and wellness expenses are crucial for potential homeowners and real estate investors to remember, as they contribute to Pasadena's overall cost of living. Prioritizing health and fitness is essential, and understanding these costs helps plan a balanced and well-rounded budget for life in this vibrant city.
Making the move to Pasadena
Living in Pasadena, CA, is an investment that is well worth it for those who appreciate its unique blend of cultural, educational, and recreational amenities. The Meg Middleman Team is a trusted partner when navigating the Pasadena real estate market. With their upbeat, caring, and responsive approach, they have earned the prestigious Five Star Professional Award for eight consecutive years. Whether you are searching for your next home or a lucrative investment property, the Meg Middleman Team will help you find the perfect fit.
