Cost of Living Adjustments for Relocation

I often get candidates from low costs states who insist that the higher cost of living in Southern California warrants a 40% increase in salary. Clearly that’s not practical, or even justified in most cases.

When people talk of a higher cost of living some think that most every purchase will carry a higher price, but that is not so. When comparing the cost of living between two areas, the biggest element by far is the cost of housing. And in that respect, living in SoCal is undoubtedly expensive. Even with the housing bubble bursting around us and a recession in progress, houses here are still far more expensive than in the rest of the country.

Still, the majority of candidates will likely rent instead of buy, at least initially, and apartment prices here are not quite as outrageous, relatively speaking, as housing prices. You should be able to rent a 1-bedroom in most decent parts of SoCal for $1000-1500, which may seem like a lot but is still modest compared to what a mortgage would go for.

So if you are considering relocating to SoCal, or any other region for that matter, I recommend you check Craigslist to get a feel for housing prices in the area before you accept an offer.