Affordable Living for Expats in California: Palo Alto vs Long Beach
Are you an expatriate considering relocating to California, particularly to the desirable areas around Palo Alto or Long Beach? This article aims to provide you with a comprehensive guide to finding affordable accommodation suitable for a young family with a salary range of $90,000 to $110,000, and to share insights on the living conditions in these areas.
Living in Lakewood or Cerritos, Long Beach
If you're a family-oriented individual, Lakewood or Cerritos, located just outside Long Beach, would be an excellent choice. Both cities are known for their family-friendly environment and offer a purer middle-class lifestyle in Southern California. The housing in these areas is affordable and well-maintained, suitable for a young family of three.
While these areas may not be as known for their nightlife, they compensate with their cozy and family-oriented atmosphere. You can find several shopping centers, including Target and Costco, making it convenient for daily needs. Additionally, smaller houses will likely fit comfortably within your budget and offer sufficient space for a family.
Exploring the Bay Area for Expats: Palo Alto
Palo Alto, on the other hand, is a lively part of the Silicon Valley ecosystem. However, the housing market in Palo Alto is quite competitive. Many landlords in the Bay Area require your pre-tax income to be three times the monthly rent. For example, if the rent is $3,000 per month, your pre-tax income needs to be $9,000 per month or more.
Assuming a salary of $100,000 per year (which is approximately $8,333 per month), you would find that the housing market poses significant challenges. Even with some extra luck, you might be able to find a two-bedroom apartment in Palo Alto, Menlo Park, or Mountain View within your budget. A quick glance at Craigslist reveals some listings in this range, but expect older complexes with communal laundry rooms instead of in-unit washers and dryers.
If you're willing to commute, you could explore the North San Jose area, which offers newer complexes within your price range. Unfortunately, commuting to Palo Alto can be challenging, especially without a shuttle service provided by your employer. For those fortunate enough to work for a tech company with shuttle services, regions such as Dublin, Pleasanton, and San Ramon might be considered.
Buying vs Renting: The Cost Challenge
Buying a home within commuting distance from Palo Alto at your salary level is highly improbable. Expectation management is key as even with a $150,000 annual salary, finding a family-sized home in a safe neighborhood within an hour's drive is extremely difficult. A typical 1950s-era suburban house in Palo Alto can easily exceed $3 million, a price point that isn't realistic with the described salary. Alternative areas like Redwood City, while more affordable, still see houses sell for over $1 million.
The situation is even more challenging if you're desperate for a home in the $500,000 to $600,000 price range. Many individuals end up buying in exurbs such as Tracy and Hollister, where commutes to Palo Alto can take over an hour, or even double that in traffic. The high housing prices in the Bay Area mean that even a $150,000 annual income is not enough to afford a safe and family-friendly home within an hour's drive from Silicon Valley.
Conclusion
While both Long Beach and Palo Alto offer unique living environments, affordability remains a significant challenge for expatriates, especially for those seeking a home within a safe and family-friendly radius. Lakewood and Cerritos in Long Beach provide a more affordable but still decent quality of life, while Palo Alto presents a more competitive market with significant challenges in finding suitable housing.
Regardless of your choice, conducting thorough research, staying within your budget, and considering your commuting preferences will be crucial in finding a comfortable place to call home in California.