The cheapest place to live in California — the Central Valley’s Hanford — is still more expensive than 295 metropolitan areas across the U.S.

My trusty spreadsheet reviewed the annual “price parity” report from the U.S. Bureau of Economic Analysis. It gives us a snapshot of relative differences in the cost of living among 384 metropolitan areas across the nation in 2023 — including 26 from California.

This inflation math is based on both price and spending swings, and is part of the Federal Reserve’s favorite inflation gauge — the “PCE” or Personal Consumption Expenditures rate.

Hanford was California’s most affordable spot because its cost of living was 1.6% below the national norm — and it still ranked 89th highest nationally.

The cost savings in Hanford are housing expenses, which run 31% below the typical US metro, by this math. Its utility prices are 39% higher.

Pressure points

The next nine cheapest California places to live are a decidedly inland and central collection of less-populated metros. Clearly, these farm towns offer some Golden State cost relief.

Merced: Costs ran 0.5% below the typical national expenses (80th highest among the 384 metros) with housing 23% below U.S. norms, but utilities 43% higher.

El Centro: 0.1% above typical (No. 76) — housing 22% below U.S., utilities 37% higher.

Visalia: 1.3% above (No. 65) — housing 17% below US, utilities 41% higher.

Bakersfield: 2.2% above (No. 59) — housing 12% below U.S., utilities 43% higher.

Redding: 2.8% above (No. 53) — housing 10% below U.S., utilities 42% higher.

Madera: 2.9% above (No. 52) — housing 9% below U.S., utilities 44% higher.

Yuba City: 3.6% above (No. 43) — housing 5% below U.S., utilities 45% higher.

Fresno: 4.0% above (No. 42) — housing 4% below U.S., utilities 44% higher.

Chico: 4.6% above (No. 37) — housing 1% above U.S., utilities 47% higher.

Flip side

Want to find a cost of living bargain nationally? Get away from the big cities.

The cheapest U.S. metro is Pine Bluff, Arkansas, where expenses run 19.7% below average. Its housing is 61% more affordable than the norm, and utilities 18% lower.

This same math tells us that living in rural America costs 11.8% less than national norms, with housing 41% cheaper and utilities 11% lower.

Painful reality

Of course, California had the nation’s most expensive market.

San Francisco living costs 18.2% more than the norm, with its housing double typical U.S. spending, with utilities 58% higher.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com