Latest / Unlocking Huntington Beach / HB Cost of Living: What You Actually Need to Earn (Ep. 24)

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HB Cost of Living: What You Actually Need to Earn (Ep. 24) · Unlocking Huntington Beach

• 0:00
  SPEAKER_00: And we're back with another episode of Unlocking Huntington Beach, and we've got a different one for you today.
• 0:07
  SPEAKER_00: So if you're considering moving to Huntington Beach, or if you even live in Huntington Beach now and you're curious how much it costs to live here, this is gonna be the video for you.
• 0:15
  SPEAKER_00: Stay tuned.
• 0:16
  SPEAKER_00: Before you move to Huntington Beach, there's a number you need to hear.
• 0:19
  SPEAKER_00: The cost of living here is 80% higher than the national average.
• 0:23
  SPEAKER_00: Now, before you click away, stay with me because that number alone doesn't tell the whole story.
• 0:27
  SPEAKER_00: And in the next 13 minutes, I'm gonna break down every single expense you actually face living here.
• 0:33
  SPEAKER_00: We're talking housing, rent, groceries, gas, the stuff nobody puts in their budget, and what income you actually need to make this work.
• 0:40
  SPEAKER_00: My name is Lane Stone with Unlocking Huntington Beach, and I've been in this market for 14 years.
• 0:45
  SPEAKER_00: I'm not here to sell you a dream.
• 0:46
  SPEAKER_00: I'm here to give you the real numbers so you can make the right call for you and your family.
• 0:51
  SPEAKER_00: So let's get into it.
• 0:52
  SPEAKER_00: First, let me put HB in context.
• 0:54
  SPEAKER_00: We're in Orange County, California, about 35 miles south of LA, right on the Pacific Ocean.
• 1:00
  SPEAKER_00: This is one of the most desirable coastal cities in the entire country.
• 1:04
  SPEAKER_00: Surf City, USA, eight and a half miles of beach year-round, weather that averages around 70 degrees.
• 1:09
  SPEAKER_00: And yeah, that lifestyle comes with the price tag.
• 1:11
  SPEAKER_00: The median household income here is around$120,000 a year.
• 1:15
  SPEAKER_00: And you're gonna need to be somewhere in that range or above it to live comfortably.
• 1:19
  SPEAKER_00: I'll tell you exactly the number to target at the end of this video, but let's start with the biggest expense, the one that makes or breaks every budget here.
• 1:27
  SPEAKER_00: Housing.
• 1:27
  SPEAKER_00: This is the one that gets people.
• 1:29
  SPEAKER_00: Whether you're renting or buying, this is where Huntington Beach will test you.
• 1:32
  SPEAKER_00: So let's talk renting first.
• 1:34
  SPEAKER_00: The average rent for an apartment in Huntington Beach right now is somewhere between$2,500 and$2,900 a month, depending on the source and the neighborhood you're looking in.
• 1:43
  SPEAKER_00: And here's how that breaks down by size.
• 1:46
  SPEAKER_00: For a studio, approximately$2,200 a month.
• 1:49
  SPEAKER_00: A one bedroom,$2,400 to$2,500, two bedrooms, you're looking at$2,900 to$3,500, three bedrooms, you're looking at$4,200 and up.
• 1:59
  SPEAKER_00: And that's just for an apartment, not a house.
• 2:01
  SPEAKER_00: Now here's the reality check.
• 2:02
  SPEAKER_00: The national average rent is around$1,600.
• 2:05
  SPEAKER_00: So we're talking 50 to 55% more expensive than what most Americans are paying.
• 2:10
  SPEAKER_00: But here's what's really important to understand there's a wide range within HB itself.
• 2:14
  SPEAKER_00: The neighborhood matters a lot.
• 2:16
  SPEAKER_00: If you look at areas like Bolsa Chica and Heil or Mesa Verde, you can find one bedrooms closer to 2,000.
• 2:22
  SPEAKER_00: But if you want downtown near the pier, old town, or anywhere close to PCH, you're going to be at the top of that range or above it.
• 2:28
  SPEAKER_00: Downtown one bedrooms can easily hit 2,500 to 3,000 and beachfront, even more.
• 2:33
  SPEAKER_00: One thing I see trip people up all the time, they find a price online that sounds reasonable, then they don't factor in the vacancy rate.
• 2:41
  SPEAKER_00: HB has a rental vacancy rate around 2.6%.
• 2:44
  SPEAKER_00: That means competition is absolutely fierce.
• 2:46
  SPEAKER_00: You're not going to find a deal by just waiting around.
• 2:49
  SPEAKER_00: When something good hits, the market moves fast.
• 2:52
  SPEAKER_00: If you want to maximize your shot at a good deal move in the fall or the winter, avoid the summer rush.
• 2:58
  SPEAKER_00: That's when everyone's moving and landlords have all the leverage.
• 3:01
  SPEAKER_00: Now let's talk buying.
• 3:03
  SPEAKER_00: Because if you're planning to put down roots here, this is what the market looks like right now.
• 3:08
  SPEAKER_00: The median sale price in Huntington Beach is right around 1.3 to 1.4 million.
• 3:13
  SPEAKER_00: And that's where the market has been sitting.
• 3:16
  SPEAKER_00: Now the range is enormous.
• 3:18
  SPEAKER_00: A condo or a smaller property, you can get into the$700,000,$900,000 range.
• 3:24
  SPEAKER_00: A single family home, even a modest one, expect a million dollars plus.
• 3:28
  SPEAKER_00: Anything near the beach with an ocean view or in a premium neighborhood like Huntington Harbor or Seacliff, you're looking at$2 million and well above.
• 3:36
  SPEAKER_00: At today's interest rates, even with rates where they are, a$1.3 million house with 20% down puts your monthly mortgage somewhere in the$7,500 to$8,500 range before taxes and insurance.
• 3:49
  SPEAKER_00: And I'm not saying that to scare you.
• 3:50
  SPEAKER_00: I'm saying that because I want you to walk into this market informed.
• 3:54
  SPEAKER_00: The people who get hurt are the ones who fall in love with HB, move fast, and didn't run the real numbers first.
• 4:00
  SPEAKER_00: Here's what I tell every client.
• 4:02
  SPEAKER_00: If you're buying in Huntington Beach, you need to understand what neighborhoods give you the best value for your lifestyle.
• 4:08
  SPEAKER_00: And that's actually a whole other video that we'll do in the future.
• 4:11
  SPEAKER_00: But for now, let's keep moving.
• 4:14
  SPEAKER_00: We're going to talk about groceries and daily expenses.
• 4:17
  SPEAKER_00: So let's talk about the day-to-day stuff because housing gets all the attention, but everything else adds up to groceries.
• 4:23
  SPEAKER_00: Huntington Beach sits about 15 to 20% above the national average for groceries.
• 4:27
  SPEAKER_00: So if you're spending$600 a month on food for a couple back home, budget closer to$700 to$750 here.
• 4:33
  SPEAKER_00: It's not shocking, but it's real.
• 4:34
  SPEAKER_00: You've got your standard options like Ralph's Vaughn's, Trader Joe's.
• 4:38
  SPEAKER_00: And then if you're shopping at Whole Foods or near Pacific City, expect to pay accordingly.
• 4:42
  SPEAKER_00: Now, dining out, this is where people really spend in Huntington Beach.
• 4:45
  SPEAKER_00: A casual dinner for two at a mid-range restaurant, I think Main Street or PCH, it's going to run you$60 to$100 with drinks, probably more than$100 now, but and coffee,$5 to$7 depending on where you go.
• 4:55
  SPEAKER_00: So if you eat out frequently, this category alone can add$500 to$1,000 a month to your budget without you really noticing it.
• 5:02
  SPEAKER_00: Utilities.
• 5:02
  SPEAKER_00: This one's actually not as bad as people fear.
• 5:04
  SPEAKER_00: Average month of utilities, electricity, gas, water, they run between$150 to$180 a month.
• 5:10
  SPEAKER_00: The coastal climate is your friend here.
• 5:11
  SPEAKER_00: You're not running AC hard in the summer the way you would inland and winters are mild.
• 5:15
  SPEAKER_00: That said, California electricity rates are among the highest in the nation at around 32 cents per kilowatt hour.
• 5:20
  SPEAKER_00: So if you're running a home office or have high energy uses, keep an eye on it.
• 5:24
  SPEAKER_00: Now we're going to talk about transportation.
• 5:26
  SPEAKER_00: Here's the honest truth Huntington Beach is a car city.
• 5:29
  SPEAKER_00: Public transit exists, like the OCTA bus system, which covers the area with a monthly passover route,$69 a month, but most people are driving.
• 5:36
  SPEAKER_00: And here's what your transportation budget actually looks like: gas.
• 5:40
  SPEAKER_00: California gas prices run high.
• 5:42
  SPEAKER_00: Figure$425 to$475 a gallon on average, but lately much, much higher.
• 5:47
  SPEAKER_00: If you commute, that adds up fast.
• 5:48
  SPEAKER_00: Car insurance, like average in Huntington Beach, is around$150 a month for a typical driver, which is actually slightly below the national average, interestingly enough.
• 5:57
  SPEAKER_00: Parking, if you live near the beach or downtown, parking is its own expense because beach parking runs$15 a day, and some apartments don't even include covered parking.
• 6:05
  SPEAKER_00: So commuting to LA, this is a big one.
• 6:08
  SPEAKER_00: If you're planning to work in LA and live here, you're looking at 45 minutes to an hour and a half commute each way, depending on traffic, plus gas, tolls.
• 6:15
  SPEAKER_00: Budget an extra 200 to 300 a month just for a commute if you're driving to LA regularly.
• 6:20
  SPEAKER_00: But the good news, if you work locally or remotely, Huntington Beach is actually very bikeable near the coast.
• 6:25
  SPEAKER_00: The strand runs for miles.
• 6:27
  SPEAKER_00: A lot of people cut their transportation costs significantly once they're settled in.
• 6:31
  SPEAKER_00: Now, this is the section I wish someone had made a video about for me before I got deep into the market.
• 6:36
  SPEAKER_00: And that's the hidden cost here.
• 6:37
  SPEAKER_00: The stuff that doesn't show up in any cost of living calculator.
• 6:41
  SPEAKER_00: Number one, the beach tax.
• 6:43
  SPEAKER_00: I'm not talking about a little tax.
• 6:44
  SPEAKER_00: I'm talking about the lifestyle premium.
• 6:46
  SPEAKER_00: When you live near the beach, you spend more.
• 6:48
  SPEAKER_00: We can paddleboard sessions, surf lessons, beach gears, sunscreen by the case, especially for me, dining out because the weather is too good to stay inside.
• 6:57
  SPEAKER_00: It's not a line item, but it's real money.
• 7:00
  SPEAKER_00: Number two, California state income tax.
• 7:02
  SPEAKER_00: If you're moving from Texas, Florida, Nevada, or any other no-income tax state, this is a major adjustment.
• 7:08
  SPEAKER_00: California's top, its top rate is 13.3%.
• 7:12
  SPEAKER_00: Even at$100,000 income, you're paying a meaningful tax state tax.
• 7:17
  SPEAKER_00: Factor this into your salary requirements.
• 7:19
  SPEAKER_00: So number three, HOA fees.
• 7:21
  SPEAKER_00: So if you're buying a condo or a townhome that's in an HOA, these fees are common.
• 7:25
  SPEAKER_00: They can range from$250 to more than$700 a month and are often overlooked in the monthly budget conversation.
• 7:31
  SPEAKER_00: And quite frankly, I'm seeing more than$500 a month.
• 7:34
  SPEAKER_00: And number four, the moving costs when you rent here, expect first month, last month, and a security deposit up front.
• 7:40
  SPEAKER_00: On a$2,500 a month apartment, that's$7,500 out of pocket before you've even unpacked a box.
• 7:47
  SPEAKER_00: And number five, the I deserve it effect.
• 7:50
  SPEAKER_00: Living somewhere beautiful is dangerous for your wallet.
• 7:53
  SPEAKER_00: When your commute is a walk to the beach and your weekends look like a travel magazine, you rationalize spending more.
• 7:59
  SPEAKER_00: I've seen this happen to almost every transplant who's moved here to Huntington Beach.
• 8:03
  SPEAKER_00: So budget for it.
• 8:04
  SPEAKER_00: Okay, here's the number you've been waiting for.
• 8:07
  SPEAKER_00: What income do you actually need to live comfortably in Huntington Beach?
• 8:10
  SPEAKER_00: A single person?
• 8:11
  SPEAKER_00: Most financial experts recommend spending no more than 30% of your gross income on housing.
• 8:16
  SPEAKER_00: So if rent is$2,500 a month, which is low, that means that you need to be bringing in at least$8,300 a month gross or roughly$100,000 a year just to clear that threshold.
• 8:27
  SPEAKER_00: And that's before food, transportation, entertainment, savings.
• 8:30
  SPEAKER_00: My honest recommendation for a single person to live comfortably, not luxuriously, but comfortably, is about$100 to$110,000 per year.
• 8:39
  SPEAKER_00: For a family, the mass shifts significantly.
• 8:41
  SPEAKER_00: A two-income household with kids is really looking at a combined income closer to$200,000 or more to feel comfortable here, especially once you factor in schools, childcare activities, and everything that comes with raising kids in Orange County.
• 8:54
  SPEAKER_00: Now, I want to be honest with you, there are people who make it work on less.
• 8:57
  SPEAKER_00: They rent in more affordable pockets of Huntington Beach.
• 9:00
  SPEAKER_00: They cook at home, they're strategic.
• 9:01
  SPEAKER_00: And there are people making$300,000 a year who still feel stretched because they upgraded their lifestyle to match their income.
• 9:07
  SPEAKER_00: This place will do that to you.
• 9:09
  SPEAKER_00: The question isn't just can I afford to move here?
• 9:12
  SPEAKER_00: It's what does my life look like here and does that align with my financial reality?
• 9:17
  SPEAKER_00: That's actually the conversation I have with every single person who reaches out to me.
• 9:21
  SPEAKER_00: So is Huntington Beach worth it?
• 9:22
  SPEAKER_00: I'm gonna give you my honest answer.
• 9:24
  SPEAKER_00: Yes, for the right person.
• 9:26
  SPEAKER_00: If you value year-round outdoor living, a walkable beach lifestyle, a strong community, some of the best weather in the entire country and you have the income to support it, Huntington Beach is generally one of the best places to live in the United States.
• 9:40
  SPEAKER_00: I'm not just saying that because it's my market.
• 9:42
  SPEAKER_00: I say it because I've seen people move here and transform their quality of life completely.
• 9:47
  SPEAKER_00: But if the numbers we talked about today create real anxiety for your budget or if you'd be stretching uncomfortably just to make rent, there are incredible communities nearby that give you a lot of what HB offers at a lower price point.
• 9:59
  SPEAKER_00: And I'd rather tell you that now than have you make a move that creates financial stress later.
• 10:05
  SPEAKER_00: The people who thrive here are the ones that came in with their eyes open.
• 10:09
  SPEAKER_00: They knew the numbers, they planned for them, they're living an incredible life.
• 10:13
  SPEAKER_00: And if that's you, or if you want to help figuring out if it could be you, reach out to me.
• 10:17
  SPEAKER_00: My name is Lane Stone.
• 10:18
  SPEAKER_00: Again, this is Unlocking Huntington Beach, and it was a different one.
• 10:21
  SPEAKER_00: But drop your questions in the comment, hit the subscribe button.
• 10:24
  SPEAKER_00: If this video helped you, share it with somebody who's thinking about making this move, and I'll leave you with this like I do each and every week.
• 10:31
  SPEAKER_00: Do good.
• 10:32
  SPEAKER_00: Huntington Beach deserves it, and I'll see you on the next one.