Catalina Island is expensive due to the high costs of transporting goods and supplies by boat and air, limited land availability for development, the high cost of real estate, and a captive audience of tourists who have fewer alternative options for lodging, food, and activities. As a result, accommodations, activities, and food all carry higher prices than on the mainland. All supplies must be transported by air or sea. The limited infrastructure on the island, including only two main developed areas, results in higher costs for goods and services. Limited real estate availability drives up prices for housing and businesses. Resource scarcity, such as fresh water, also contributes to higher costs.