Cost of Living in Lakewood, CA

Homes For Sale In Lakewood, CA

An Overview of Cost of Living in Lakewood, CA

Are you thinking about relocating, but curious about the potential cost of living in Lakewood? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Lakewood stands at 170, making it 70% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

If you prioritize affordability when seeking a new place to live, Lakewood 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, Lakewood falls into this category, which may not align with your preferences for a budget-friendly living environment.

Housing costs significantly influence the Lakewood cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 190.3%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.

Recurring essentials like haircuts, toothpaste, and entertainment, from movies to gym sessions, can really add up in your budget and make up 33% of the cost of living index. In Lakewood, you you will have to spend 21% more than average when compared to the typical prices for these items, making it a more expensive place to live.

Is Lakewood Affordable?

Wondering if Lakewood is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Lakewood, for example, the median home price is 228.9% higher than what folks pay nationally, and monthly rent is 100.1% higher than the usual rates. Plus, income levels matter too, with Lakewood boasting a median household income of $140,908, which is 73.2% higher than the national average.

What Factors can Influence the Cost of Living in Lakewood?

Housing: When there's a high demand for housing in trendy places, it can cause property prices and rental rates to soar, leading to a significantly higher cost of living. Conversely, in less desirable locations, where demand is low, prices tend to decrease, resulting in a more budget-friendly cost of living. In Lakewood, the housing index is 190.3% higher than the national average.

Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In Lakewood, the groceries index is 9.3% higher than the national average.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Lakewood, the utilities index registers at 8.9% higher than the national average.

Where is the Data From?

The cost of living in Lakewood, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

Most Affordable Places to Live in and Around Lakewood

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Median Income & Debt-To-Income Ratio

The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Lakewood, CA, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Lakewood, homeowners have a median income of $162,715. Using that number, a maximum of $3,796 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $104,941, which means there is a maximum of $2,448 to be spent on the costs of renting a home or apartment.

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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.

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Date & Last Updated: This data reflects 2025 and was released from C2ER in January, 2026; this is the most current data available.