San Luis Obispo is notably expensive due to a combination of factors, with its real estate market being the most significant driver of the high cost of living.
The High Cost of Living in San Luis Obispo
The primary reason for the elevated cost of living in San Luis Obispo stems directly from its real estate market, which experiences high demand and limited supply.
Real Estate as the Major Factor
Expensive housing is the biggest contributor to why San Luis Obispo is considered an expensive place to live. The cost of purchasing a home here is considerably higher than many other areas due to a highly competitive market.
Here are key statistics illustrating the impact of real estate:
| Housing Metric | Detail |
|---|---|
| Median Home Price | $882,000 |
| Year-over-Year Increase | 18.9% |
| Median Days on Market | 7 days |
This data highlights a market characterized by short supply and high demand. Homes sell exceptionally quickly, often within a median of just seven days on the market, reflecting intense buyer interest and limited inventory. This combination of scarcity, rapid sales, and escalating values makes housing the dominant expense for residents, consequently pushing up the overall cost of living in San Luis Obispo.
