One of the first factors one must consider when looking for destinations to retire to is the cost of the living there. San Jose is one of the most expensive places to live in the United States. Yet, the city is still affordable when it comes to some of the expenses important to retirees.
According to the latest numbers from Forbes, the cost of living in San Jose is 50.8 percent higher than the national average. But, how does the “Capital of Silicon Valley” stack up to the rest of the country when it comes to common budgetary items?
Both the rent and home prices continue to show a strong upward trend in San Jose, and that is likely to continue as the city experiences record-setting job growth. According to July 2015 numbers from Forbes, the median home price is $730,700. And, rent is $2,548 per month on average for a one-bedroom apartment in San Jose. If you want two bedrooms, expect to pay $3,267 per month for a two-bedroom apartment.
San Jose is one of the most expensive places to buy groceries in the US according to Sperling’s Best Places. San Joseans spend an average of eighteen percent more for groceries than the nationwide average. Taking a look at some of the most common grocery items you might buy in San Jose, the average price for a dozen eggs is $4.06, a gallon of milk goes for $3.90, and a pound of boneless, skinless chicken breasts will cost you an average of $3.81.
Transportation is also significantly higher than the national average in San Jose. According to Sperling’s Best Places, San Joseans spend thirteen percent more than the rest of the US for transportation. However, you can expect to pay much less if you are retired and do not have a daily commute. As of July 2016, the price of gas ranges from $2.33 per gallon to $3.19. San Jose is one of the most affordable big cities for car insurance. The average rate is $1,484 per year, but you may be able to get better rates based on your driving history, driving habits, and type of vehicle.
Across the board, senior care is more expensive in San Jose. Home health care is about $67,000 per year in San Jose compared to $46,000 nationwide. Adult day health care is $23,400 in San Jose but only $17,680 for the rest of the country. You can expect to pay $10,000 more for assisted living in San Jose than the US average. And, private and semi-private rooms in nursing homes will cost you an average of $137,788 and $118,808 respectively in San Jose. This compares to national medians of $92,378 and $82,125.
Ensure you get the most out of your nest egg by comparison shopping for housing based on walkability, pricing, and affordable transportation alternatives.
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