San Diego is one of the cities in the United States with a high cost of living, and in recent years, the rise in prices and the burden of living expenses have intensified.

The main reasons for the increasing difficulty of dining out due to rising living expenses are as follows.

Rising Housing Costs: Supply Shortage and Increased Demand

Housing prices and rents in San Diego have been continuously rising. As of 2023, about 60% of homes in San Diego are being sold for over $1 million, and the average rent is $3,175, making it the third highest in the nation. This increase in housing costs is due to a shortage of housing supply and high demand.

Rising Prices of Essential Goods

In the 12 months leading up to March 2024, the Consumer Price Index (CPI) in the San Diego area rose by 3.8% compared to the previous year. In particular, food prices increased by 4.8%, and dining out costs rose by 6.3%. This is further increasing the burden of spending on essential goods.

Increased Energy and Utility Costs

California is experiencing rising electricity rates due to investments in renewable energy transition and aging infrastructure improvements. These costs are passed on to consumers, especially in areas with high cooling demand during the hot summer months, leading to a significant increase in electricity bills.

Transportation and Fuel Cost Burdens

As of December 2024, the average gasoline price in San Diego is $4.42 per gallon, which is about 50% higher than the national average. This adds additional financial burden to residents who rely on vehicles.

Imbalance Between Wage Growth and Cost of Living Increase

From 2020 to 2025, the average hourly wage in California has increased by about 24%, but during the same period, the monthly mortgage payments for median-priced homes have increased by 82%, and for lower-priced homes, by 87%. This imbalance is further intensifying the cost of living burden on low-income and middle-class households.

City's Response Efforts

The San Diego City Council has formed a special committee to address the cost of living issues. This committee is working to alleviate residents' burdens through policy changes in various areas such as housing, transportation, and energy costs. The increase in prices and cost of living in San Diego is due to a combination of factors including housing costs, essential goods prices, energy costs, and transportation expenses.