San Diego living may be fun and full of sun, but it comes with a higher and higher cost as inflation in San Diego managed to tie New York’s as the highest in the nation at 3.8% in March 2025, according to the San Diego Union-Tribune. The Pacific Ocean, the Mexican border, and the mountains are great getaways that flank California’s southernmost city. Still, those natural geographic barriers can make it more expensive to get goods to residents. From housing to gasoline, local pockets are taking a hit as even iconic burritos are over $10.

By November 2025, San Diego’s inflation rate once again made headlines when it went up to 4%, officially making it the highest in the nation, according to USAFacts.  Residents are adapting by accessing state food benefits, reducing expenses such as childcare, and postponing homeownership. 

How Bad Is Inflation in San Diego?

San Diego now has the highest inflation in the United States. It has been brought on by the inflated costs of food, which is also ushering in an increasingly alarming hunger crisis. The sky-high rents and job uncertainties are also making life harder for many.

Disappearing Cheap Eats

Getting a local delight, such as a burrito, is no longer a cheap option, as one local Instagrammer commented how a formerly $10 burrito from Harry’s is now $16. Customers should also expect to pay $13 from Roberto’s instead of the former $7.50 price.

As Axios San Diego explained, burrito inflation is in part due to the rising cost of proteins like beef. Increasing expenses for other ingredients, rent, insurance, and valet parking are also responsible for these and other rising local restaurant prices, which end up getting passed on to customers. Additionally, ABC10 News reported in 2025 that San Diego had a 6.3% take out price hike, the largest increase compared to other American metro areas.

Bloated Rent

KPBS Public Media did a special report on the state of the San Diego inflation crisis, covering housing costs and the potential for rising hunger. The report mentioned how one 65-year-old’s rent in an RV park went up from $750 to $1045 monthly, forcing her to spend 80% of her small supplemental income on housing. The broadcast also emphasized that San Diego residents are paying 5.6% more on housing, 7% for gas, and 1% more for food, based on Bureau of Labor Statistics data.

Alarming Hunger

The San Diego Hunger Coalition was also highlighted by KPBS Media since the organization helps combat alarming food insecurity, where over 850,000 out of the county’s 3 million don’t have enough to eat. They are identifying more people who are eligible for CalFresh and helping enroll them.

Childcare

Nationwide unemployment is already a problem, but in the case of San Diego, the escalating cost of childcare has compounded the issue further. That’s because education costs, including childcare, have risen 9% since the previous year, according to CBS8. As Economics professor Hishan Foad relayed, many local people are thinking, “Why am I working 40 hours a week just to pay for child care?” 

What Is Housing Affordability Like in the San Diego Economy?

Unsurprisingly, the San Diego cost of living affects homeownership. According to Bankrate, only 1.6% of San Diego homes are affordable for a typical household, as a $221,990 income is required. So far, one solution has been the increase in building of townhomes, as it’s a more attainable option for first-time San Diego homebuyers.

What’s a Comfortable Salary Here? 

In 2023, a Smart Asset data analysis concluded that San Diego ranks #2 on the list of cities requiring the highest salaries. A single resident needs $79,324 after taxes to live comfortably and cover $39,662 in basic living expenses.

How Are Residents Adapting to Inflation?

Coping with inflation in San Diego has meant more shopping at discount stores, using coupons, and buying in bulk. Some people have been using credit cards and savings more to cover their daily necessities. Community resources have also been more valuable than ever, especially local SNAP programs such as CalFresh. 

Regarding housing, despite making a good income, one software engineer who spoke with the Voice of San Diego is opting to live with a roommate as he saves for a future home purchase. One senior with limited income opts to eat a single meal a day and signs up for medical studies for “survival” money. In otherwords, various residents are finding ways to save and increase finances during a time of stagnation, as Empower | The Currency would advise.

Frequently Asked Questions

How Much is $100 in 1990 Worth Today?

$100 in 1990 is now worth $247 today. That’s because the dollar had an average inflation rate of 2.55% annually between 1990 and today. So what can $247 get you in San Diego today? If you were traveling there, it might get you a couple of nights at a budget cheap hotel, which averages about $137 a day according to The Currency Shop.

Is San Diego the Most Unaffordable City?

According to a 2026 report by Realtor, the answer is no. The report lists San Diego at number four, as it follows behind San Jose, California, Los Angeles, California, and Long Beach, California as the most unaffordable city to live in. When it comes to international cities, 11 of the 20 most expensive ones are outside the United States, while Canada has four of them, including Toronto and Vancouver.

What State Is #1 in Homelessness?

California still has the highest population of homeless people in the United States, followed by New York. However, Hawaii also has a significant homeless population relative to its population size.

The High Life in San Diego Comes at a Cost

Due to its sunny year-round climate, laid-back outdoor-oriented lifestyle, Navy base, diverse geographic environment that allows beach going, hiking, and mountain activities, there are many reasons to love and want to live in San Diego. However, inflation in San Diego has made the California dream in this area easier said than done.

With a 4% inflation rate, making it the highest in the country, living the San Diego highlife comes at an equally high cost. However, as some residents make adjustments in living accommodations, childcare, access benefits, and forgo eating out, they’re doing their best to manage the outcome.

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