F
241%
Overall NAT. AVG.
8%
Goods & Services NAT. AVG.
765%
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 Los Altos California National
Cost of living341140100
Goods & Services108111100
Groceries115112100
Health care123109100
Housing865196100
Transportation130126100
Utilities132127100

An Overview of Cost of Living in Los Altos, CA

The cost of living in Los Altos affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Los Altos is 341, which is 241% higher than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

If you value affordability in your search for a new place to live, Los Altos may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Los Altos falls into this category, which may not align with your desire for an affordable place to call home.

Housing costs significantly influence the Los Altos 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 764.7%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.

Groceries are getting more expensive by the day and the cost of groceries makes up 13% of the overall cost of living index. In the past two years, prices have shot up by over 10%! Unfortunately, in Los Altos, it's the same story – grocery costs are 14.5% higher than what people pay across the country.

What Do Locals Say About the Cost of Living in Los Altos?

Locals have the inside scoop on their city. So, we polled 13 residents in Los Altos to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 0% find it reasonable with decreasing prices, but 100% think it's quite pricey, with prices that continue to rise.

Is Los Altos Affordable?

Is Los Altos affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Los Altos, for instance, where the median home price falls 982.8% higher than the national average, and monthly rent rates are 255.6% higher than usual. Additionally, median income levels contribute to the equation, with Los Altos flaunting a median household income of $240,094, 334% higher than the national norm.

What Factors can Influence the Cost of Living in Los Altos?

Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Los Altos comes in at 31.8% 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 Los Altos, the groceries index is 14.5% higher than the national average.

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 Los Altos, the general sales tax rate starts at 7.25%, and income tax rates begin at 1%.

Where is the Data From?

The Los Altos 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. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Los Altos is 144% higher than the California average
  • The cost of living in Los Altos is 241% higher than the national average
  • Los Altos housing is 765% higher than the national average
  • California general sales tax is 42% higher than the national average
  • California state income tax is 61% lower than the national average

Most Affordable Places to Live in and Around Los Altos

See all the best places to live around Los Altos

Compare Los Altos, 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$250,001$20,833$5,833$7,501
      Renters$208,846$17,404$4,873$6,266
      The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Los Altos, CA, as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Los Altos homeowners, is $250,001. This would allow for a maximum of $5,833 per month to be spent on housing costs. For renters, the median monthly income is $208,846 which would result in a maximum of $4,873 to be spent on rental costs.

      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% 13.3%

      Goods & Services

      Item Los Altos National avg. Difference
      Haircut $33.94$24.2639.9%
      Beauty Salon $48.51$45.566.5%
      Toothpaste $3.72$3.700.4%
      Shampoo $1.66$1.2829.9%
      Movie $13.31$12.139.7%
      Bowling $33.30$18.0085.0%

      Groceries

      Item Los Altos National avg. Difference
      Ground Beef $5.79$5.840.8%
      Fried Chicken $2.13$1.5735.7%
      Milk $5.05$4.678.2%
      Potatoes $4.77$4.933.4%
      Pizza $14.92$12.0923.5%
      Beer $10.99$10.415.6%

      Health Care

      Item Los Altos National avg. Difference
      Optometrist $158.95$125.6826.5%
      Doctor $194.05$135.7842.9%
      Dentist $147.78$113.2930.4%
      Ibuprofen $11.51$10.658.1%
      Lipitor $390.15$468.6016.7%

      Housing

      Item Los Altos National avg. Difference
      Home Price $2,000,001.00$184,700.00982.8%
      Avg. Mortgage Payment $8,581.10$2,346.69265.7%
      Apartment Rent $3,375.00$949.00255.6%

      Transportation

      Item Los Altos National avg. Difference
      Gasoline $4.81$3.4638.9%
      Tire Balancing $65.62$59.929.5%

      Utilities

      Item Los Altos National avg. Difference
      All Electricity $294.74$193.9951.9%
      Phone $190.07$192.251.1%
      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.
      Loma Mar, CA28211716.8%
      Mountain View CDP, CA2,58513030.1%
      Alum Rock, CA11,79817877.8%
      Newark, CA48,14819797.0%
      La Honda, CA1,229203103.5%
      Los Altos, CA30,878341241.2%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Fair Oaks, CA30,88214848.2%
      Sterling, VA30,87213535.2%
      Centre Wellington, ON30,896n/a 
      Algonquin, IL30,84811211.8%
      Cleburne, TX30,812972.8%
      Los Altos, CA30,878341241.2%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.