F
207%
Overall NAT. AVG.
8%
Goods & Services NAT. AVG.
651%
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 Gatos California National
Cost of living307140100
Goods & Services108111100
Groceries115112100
Health care123109100
Housing751196100
Transportation130126100
Utilities132127100

An Overview of Cost of Living in Los Gatos, CA

Are you thinking about relocating, but curious about the potential cost of living in Los Gatos? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Los Gatos stands at 307, making it 207% 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, Los Gatos 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, Los Gatos falls into this category, which may not align with your preferences for a budget-friendly living environment.

Housing costs are a very significant part of the Los Gatos cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 651.4% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

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 Los Gatos is even less favorable, with grocery prices here being 14.5% higher than the national average.

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

The real experts on a city are its residents. That's why we reached out to 8 locals to get their views on the cost of living in Los Gatos. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 25% found it budget-friendly with decreasing prices, while 75% said it's simply not affordable as prices have continued to rise.

Is Los Gatos Affordable?

Is Los Gatos 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 Los Gatos, the median home price is 861.3% higher than the national average and monthly rent prices are 161.5% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Los Gatos boasting a median household income of $156,270, 182.5% higher than the national average.

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

Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Los Gatos, the groceries index is 14.5% higher than the national average.

Housing: Elevated demand for housing within coveted locales has the propensity to escalate both property values and rental rates, thereby serving as a primary catalyst for an augmented cost of living. Conversely, areas witnessing diminished housing demand, particularly within less desirable environs, often experience an inversely proportional effect, leading to price reductions and subsequently contributing to a more modest cost of living. In Los Gatos, the housing index is 651.4% higher than the national average.

Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.

Where is the Data From?

The cost of living data in Los Gatos 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 Los Gatos is 120% higher than the California average
  • The cost of living in Los Gatos is 207% higher than the national average
  • Los Gatos housing is 651% 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 Gatos

See all the best places to live around Los Gatos

Compare Los Gatos, 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$197,000$16,417$4,596$5,911
      Renters$113,419$9,452$2,646$3,403
      The affordability of the housing market in Los Gatos, CA as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Los Gatos homeowners, the median income is $197,000. This indicates that a monthly maximum of $4,596 should be spent by homeowners on all housing related costs. Renters have a median income of $113,419. This indicates that renters would have a maximum of $2,646 for their rent related monthly 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 Gatos 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 Gatos 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 Gatos 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 Gatos National avg. Difference
      Home Price $1,775,500.00$184,700.00861.3%
      Avg. Mortgage Payment $8,581.10$2,346.69265.7%
      Apartment Rent $2,482.00$949.00161.5%

      Transportation

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

      Utilities

      Item Los Gatos 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.
      Mountain View CDP, CA2,58513030.1%
      Brookdale, CA1,29316261.9%
      Boulder Creek, CA5,30516565.0%
      Lompico, CA88117574.8%
      Alum Rock, CA11,79817877.8%
      Los Gatos, CA31,943307207.2%

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      City Population Cost of Living Index National Avg.
      Kaysville, UT31,95712221.5%
      Dover, NH31,92212423.9%
      Des Moines, WA31,98313535.5%
      Wheat Ridge, CO31,88912929.4%
      Ferry Pass, FL32,016963.7%
      Los Gatos, CA31,943307207.2%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.