Can I afford to live in San Francisco?

Question

I make $48,000 ($4,000 per month) before taxes, with a high probability of a $5,000/year bonus and a high potential for promotion within 3 months to a year. I have plenty of money in savings. My expenses are pretty normal - utilities, cell phone, etc. I do have a car, but it's completely paid off, so the main expenses would be insurance and gas. I'm looking primarily at mid-level neighborhoods that are rumored to have decent street parking (Presidio, Portrero, Noe Valley, etc.) so hopefully that won't be an extra cost. (My car is a 6-year-old Hyundai Accent with nothing in it so it's not likely to get broken into.) I'm totally fine with having roommates and I've seen a lot of postings on craigslist for rooms for $800-$1000 in areas such as those. I've lived in California my whole life so I don't see the sticker shock on rent prices like most people seem to. Of course, one doesn't truly know the cost of living until they live there, so I'm asking: would I be living within my means?

I asked because I've heard people say you can't live in SF on less than $60K, and everyone talks about how abhorrently expensive it is, and as someone who's never actually lived there I wanted to get some other opinions and make sure I wasn't missing some unforseen costs. :)

Answer 1

Based on the information you've provided, I'd say you can live comfortably in San Francisco. You seem to have done your research quite well, which is very admirable.

Those who say you need 6 figure incomes are overstating things just a tad. Most are basing it on their experiences as tourists... or are intent on living a lifestyle that includes Brioni suits and $150.00 tasting menus in 5-star French restaurants.

If you've lived in L.A. or San Diego, you'll find the prices for everyday items similar to what you're used to. If you lived in the Central Valley or Far North, it's probably a bit more expensive. But either way, it won't shock you.

The real reason why it's considered so expensive is because of the real estate market. The usable land in San Francisco (not government owned, water, or parks) is only about the size of Manhattan, so property values has skyrocketed. They recently sold the 779 foot Bank of America Tower for an obscene $1.05 billion (with a "b") dollars. It's purchases like that which screws up the statistics.

In other words, as long as you're satisfied with shared housing and being a renter (rather than an owner), living in San Francisco is not a problem.

Answer 2

You sound like you've thought things out well. As long as you don't constantly go out to movies, theater, concerts, dine out you'll be fine. Insurance on the car, and gas would be a bit expensive for the city. A lot of people I know in the city bike or take public transit. $800-$1000 with a roommate sounds great. We're paying $1200 for a 2 BR house in Napa. And it's not exactly a castle if you get my drift. I don't see any reason that you can't swing it, you're obviously good with saving and know how to pinch pennies.

Answer 3

I see no problem with you being able to afford it, especially since you're amenable to living with roommates.

"Decent" street parking in Noe Valley and Portrero means you'll be within a few blocks of your home.

There's a long waiting list for places in the Presidio, with preference being given to employees of the GGNRA.

Answer 4

My 25 yr old son lives there. He loves it. He and another guy share a tiny spot (studio), neither has a car, public transportation is good. He works 2 jobs and although I've offered him free rent and bigger digs with me, he's happy where he's at. You can do it, it sounds like you've thought it out well. Best of luck!!

Answer 5

Based on the information you just posted you can afford to live in SF. I am curious though why you even bothered to ask the question.

Good Luck!!!

Answer 6

live in the east bay, its cheaper and less extreme weather