San Diego living, known for its sunshine, is becoming increasingly expensive. Inflation in San Diego tied with New York’s at 3.8% in March 2025, according to the San Diego Union-Tribune. The city’s location—flanked by the Pacific Ocean, the Mexican border, and mountains—creates natural geographic barriers that can increase the cost of goods. Even iconic burritos now cost over $10.
By November 2025, San Diego’s inflation rate rose to 4%, officially becoming the highest in the nation, according to USAFacts. Residents are responding by accessing state food benefits, reducing childcare expenses, and postponing homeownership.
How Bad Is Inflation in San Diego?
San Diego currently experiences the highest inflation rate in the United States. This is driven by rising food costs, contributing to an alarming hunger crisis, alongside high rents and job uncertainties.
Disappearing Cheap Eats
The cost of a local favorite, the burrito, is increasing. One local Instagrammer noted that a burrito from Harry’s, formerly $10, now costs $16, even as a burrito from Roberto’s has increased from $7.50 to $13.
According to Axios San Diego, rising protein costs, like beef, contribute to “burrito inflation.” Increased expenses for ingredients, rent, insurance, and valet parking are also being passed on to customers. ABC10 News reported a 6.3% increase in take-out prices in San Diego in 2025, the largest increase among American metro areas.
Bloated Rent
KPBS Public Media reported on the San Diego inflation crisis, focusing on housing costs and potential hunger. The report highlighted a 65-year-old whose RV park rent increased from $750 to $1045 monthly, forcing her to spend 80% of her supplemental income on housing. Bureau of Labor Statistics data shows San Diego residents are paying 5.6% more for housing, 7% for gas, and 1% more for food.
Alarming Hunger
KPBS Media highlighted the San Diego Hunger Coalition, which combats food insecurity. Over 850,000 out of the county’s 3 million residents do not have enough to eat. The organization is working to identify and enroll more eligible individuals in CalFresh.
Childcare
Escalating childcare costs are compounding unemployment issues in San Diego. Childcare costs have risen 9% since the previous year, according to CBS8. Economics professor Hishan Foad noted that some local residents are questioning whether working 40 hours a week is worth it when so much income goes to childcare.
What Is Housing Affordability Like in the San Diego Economy?
The San Diego cost of living impacts homeownership. According to Bankrate, only 1.6% of San Diego homes are affordable for a typical household, requiring an income of $221,990. The construction of townhomes is seen as a more attainable option for first-time homebuyers.
What’s a Comfortable Salary Here?
A Smart Asset analysis from 2023 found 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, covering $39,662 in basic living expenses.
How Are Residents Adapting to Inflation?
San Diego residents are coping with inflation by shopping at discount stores, using coupons, and buying in bulk. Some are relying more on credit cards and savings, and utilizing community resources like CalFresh.
One software engineer is opting to live with a roommate to save for a future home purchase, while a senior with limited income is eating only one meal a day and participating in medical studies for additional income, as reported by the Voice of San Diego.
Frequently Asked Questions
How Much is $100 in 1990 Worth Today?
$100 in 1990 is now worth $247 today, due to an average annual inflation rate of 2.55% between 1990 and today.
Is San Diego the Most Unaffordable City?
According to a 2026 report by Realtor, San Diego is the fourth most unaffordable city, following San Jose, Los Angeles, and Long Beach, California.
What State Is #1 in Homelessness?
California has the highest population of homeless people in the United States, followed by New York. Hawaii also has a significant homeless population relative to its population size.
With a 4% inflation rate, the highest in the country, living in San Diego comes at a high cost. Residents are adapting by making adjustments to their lifestyles and seeking assistance, but the challenges remain significant.
How might continued inflation impact long-term population trends in San Diego?