F
227%
Overall NAT. AVG.
16%
Goods & Services NAT. AVG.
722%
Housing NAT. AVG.
Search Homes for Sale
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 Palos Verdes Estates California National
Cost of living327140100
Goods & Services116111100
Groceries112112100
Health care108109100
Housing822196100
Transportation124126100
Utilities112127100

An Overview of Cost of Living in Palos Verdes Estates, CA

Understanding the cost of living in Palos Verdes Estates can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Palos Verdes Estates cost of living index is 327, which is 227% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

If affordability is among your top priorities when searching for a new place to live, this area may not be the ideal fit, as the cost of living in Palos Verdes Estates is among the most expensive in the United States. Just a minority of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Palos Verdes Estates falls into this category, which may not align with your goal of finding a budget-friendly living environment.

When it comes to the cost of living in Palos Verdes Estates, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 721.8% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Recurring goods and services expenses like haircuts, toothpaste, gym memberships and movie nights are a big part of your spending and make up 33% of the cost of living index. In Palos Verdes Estates, these items will cost you 16.2% more than what most folks pay, making it a bit more expensive to live here.

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 Palos Verdes Estates is even less favorable, with grocery prices here being 12.2% higher than the national average.

Is Palos Verdes Estates Affordable?

Is Palos Verdes Estates affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Palos Verdes Estates, the median home price is 948.1% higher than the national average and monthly rent prices are 193.7% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Palos Verdes Estates boasting a median household income of $197,826, 257.6% higher than the national average.

What Factors can Influence the Cost of Living in Palos Verdes Estates?

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 Palos Verdes Estates, the general sales tax rate starts at 7.25%, and income tax rates begin at 1%.

Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Palos Verdes Estates, the healthcare costs are 7.9% higher than the national average.

Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.

Where is the Data From?

The Palos Verdes Estates cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Palos Verdes Estates is 135% higher than the California average
  • The cost of living in Palos Verdes Estates is 227% higher than the national average
  • Palos Verdes Estates housing is 722% 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 Palos Verdes Estates

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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$208,958$17,413$4,875$6,269
      Renters$99,196$8,266$2,314$2,976
      A good indicator of the general affordability of housing in Palos Verdes Estates, 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 Palos Verdes Estates, the median monthly income is $208,958 for those who own their own homes. Under the standard rule, that income level would allow for $4,875 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $99,196, per the median income in the area. That would allow for renters to spend up to $2,314 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 Palos Verdes Estates 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 Palos Verdes Estates 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 Palos Verdes Estates 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 Palos Verdes Estates National avg. Difference
      Home Price $1,935,900.00$184,700.00948.1%
      Avg. Mortgage Payment $2,799.02$2,346.6919.3%
      Apartment Rent $2,787.00$949.00193.7%

      Transportation

      Item Palos Verdes Estates National avg. Difference
      Gasoline $4.47$3.4629.3%
      Tire Balancing $58.33$59.922.6%

      Utilities

      Item Palos Verdes Estates 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.
      Vernon, CA24811717.0%
      Willowbrook, CA24,40113333.3%
      Rolling Hills CDP, CA83213433.9%
      Compton, CA95,80413636.2%
      Florence-Graham, CA64,78713736.5%
      Palos Verdes Estates, CA13,359327227.5%

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      City Population Cost of Living Index National Avg.
      Powell, OH13,35312626.4%
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      La Grande, OR13,380981.7%
      Lone Tree, CO13,38116464.2%
      Richton Park, IL13,381982.2%
      Palos Verdes Estates, CA13,359327227.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.