San Diego’s food, housing and medical costs remain among the nation’s highest entering 2026

Prices for essentials continue to outpace national inflation

San Diego County enters 2026 with some of the nation’s highest costs for basic necessities, as inflation for the San Diego–Carlsbad area continues to run above the U.S. average. The Consumer Price Index for All Urban Consumers showed overall prices in the region were up 4.0% over the 12 months ending November 2025, compared with a 2.7% annual increase nationally over the same period.

Within the regional CPI, shelter remained a major driver of household budgets. Shelter prices rose 5.6% year over year through November 2025. Medical care also increased over that period, rising 3.7%. Food prices rose 1.1% overall, with a notable split: food at home was essentially flat over the year (down 0.1%), while food away from home increased 2.9%.

Food insecurity persists alongside a high cost environment

As costs for housing and services remain elevated, hunger has become a defining measure of strain for many households. Local anti-hunger organizations estimate hundreds of thousands of county residents lack consistent access to enough food, with higher rates reported among children and people with disabilities. Food assistance providers have also reported sustained demand and increased use of nutrition services over the past year, reflecting a continuing gap between incomes and core living expenses.

• Housing cost growth remains above overall inflation in the region.
• Restaurant and prepared-food costs continue to rise faster than grocery prices.
• Demand for local food assistance has stayed elevated across multiple providers.

Labor market signals add uncertainty for household budgets

San Diego County’s unemployment rate has hovered near the national level, but local economists have described signs of softening conditions and heightened uncertainty for employers. Business planning and hiring decisions can be affected by volatility in trade policy and input costs, adding risk to an outlook already shaped by higher-than-average local inflation.

In a high-cost region, even modest shifts in employment or hours worked can quickly translate into missed payments or reduced spending on food, health care, or other essentials.

Health coverage affordability shifts after subsidy changes

Health care affordability is also in focus as 2026 begins. Enhanced federal premium tax credits that had reduced marketplace premiums for many enrollees ended on December 31, 2025. Covered California has stated that tax credits remain available, but many consumers may receive less assistance than in prior years. Early indications point to fewer first-time sign-ups, and more consumers shifting to lower-premium plans that can carry higher deductibles.

Together, higher shelter costs, persistent pressure on household food budgets, and changes in health insurance affordability are shaping the region’s economic reality entering 2026.