F
28%
Overall NAT. AVG.
16%
Goods & Services NAT. AVG.
57%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Palmdale California National
Cost of living128140100
Goods & Services116111100
Groceries112112100
Health care108109100
Housing157196100
Transportation124126100
Utilities112127100

An Overview of Cost of Living in Palmdale, CA

Getting a feel for the cost of living in Palmdale is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Palmdale is 128, which is 28% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

If you prioritize affordability when seeking a new place to live, Palmdale may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Palmdale falls into this category, which may not align with your preferences for a budget-friendly living environment.

Housing costs make up a big chunk of the cost of living in Palmdale, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 56.9% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Palmdale goods and services are 16.2% more expensive than the national average, leaving you with less money at the end of the month.

The substantial and relentless rise in grocery prices definitely warrants some attention. Over the past two years, grocery expenses have escalated by more than 10%. Having said that, the situation in Palmdale is even less favorable, with grocery prices here being 12.2% higher than the national average.

What Do Locals Say About the Cost of Living in Palmdale?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 10 locals to understand their opinions on the cost of living in Palmdale. The results indicated that 70% found it reasonably priced with decreasing prices of goods and services, while 30% viewed it as quite expensive, with increasing prices.

Is Palmdale Affordable?

Is Palmdale an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Palmdale, the median home price is 63.9% higher than what most folks pay across the country, and monthly rent prices are 40.5% higher than the usual rates. Income levels in Palmdale come in at $65,444, which is 18.3% higher than the national average.

What Factors can Influence the Cost of Living in Palmdale?

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Palmdale, the general sales tax rate starts at 7.25%, and income tax rates begin at 1%.

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In Palmdale, the transportation index is 24.3% higher than the national average.

Housing: When everyone's vying for homes in popular areas, it drives up property prices and rents, making the overall cost of living surge. On the flip side, in less sought-after locales, where housing demand is low, prices tend to dip, resulting in a more economical cost of living. In Palmdale, the housing index comes in at 56.9% higher than the national average.

Where is the Data From?

The cost of living data in Palmdale displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Palmdale is 8% lower than the California average
  • The cost of living in Palmdale is 28% higher than the national average
  • Palmdale housing is 57% higher than the national average
  • California general sales tax is 42% higher than the national average
  • California state income tax is 56% lower than the national average

Most Affordable Places to Live in and Around Palmdale

See all the best places to live around Palmdale

Compare Palmdale, CA Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$77,268$6,439$1,803$2,318
      Renters$40,612$3,384$948$1,218
      A good indicator of the general affordability of housing in Palmdale, CA, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Palmdale, the median monthly income is $77,268 for those who own their own homes. Under the standard rule, that income level would allow for $1,803 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $40,612, per the median income in the area. That would allow for renters to spend up to $948 on monthly rental expenses.

      California Sales Tax

      State General Sales Tax With Max Surtax
      California 7.25% 10.5%

      California Income Tax

      State Income Tax (Low) Income Tax (High)
      California 1% 12.3%

      Goods & Services

      Item Palmdale National avg. Difference
      Haircut $24.67$24.261.7%
      Beauty Salon $49.33$45.568.3%
      Toothpaste $3.76$3.701.5%
      Shampoo $1.41$1.289.8%
      Movie $13.46$12.1311.0%
      Bowling $19.07$18.006.0%

      Groceries

      Item Palmdale National avg. Difference
      Ground Beef $6.26$5.847.2%
      Fried Chicken $2.08$1.5732.2%
      Milk $4.76$4.671.9%
      Potatoes $4.94$4.930.2%
      Pizza $16.13$12.0933.5%
      Beer $9.60$10.417.8%

      Health Care

      Item Palmdale National avg. Difference
      Optometrist $129.09$125.682.7%
      Doctor $119.86$135.7811.7%
      Dentist $108.07$113.294.6%
      Ibuprofen $10.36$10.652.7%
      Lipitor $505.41$468.607.9%

      Housing

      Item Palmdale National avg. Difference
      Home Price $302,800.00$184,700.0063.9%
      Avg. Mortgage Payment $2,799.02$2,346.6919.3%
      Apartment Rent $1,333.00$949.0040.5%

      Transportation

      Item Palmdale National avg. Difference
      Gasoline $4.47$3.4629.3%
      Tire Balancing $58.33$59.922.6%

      Utilities

      Item Palmdale National avg. Difference
      All Electricity $326.49$193.9968.3%
      Phone $182.78$192.254.9%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Sun Village, CA14,08012020.1%
      Littlerock, CA94812121.3%
      Lancaster, CA157,69712524.9%
      Desert View Highlands, CA3,25912726.5%
      Quartz Hill, CA10,40513030.5%
      Palmdale, CA153,24012828.0%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Macon-Bibb County, GA153,0268911.1%
      Kansas City, KS153,0148614.2%
      Springfield, MA153,6771022.1%
      Hollywood, FL153,83411616.2%
      Sunnyvale, CA152,569266166.2%
      Palmdale, CA153,24012828.0%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.