F
145%
Overall NAT. AVG.
16%
Goods & Services NAT. AVG.
448%
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 Rancho Palos Verdes California National
Cost of living245140100
Goods & Services116111100
Groceries112112100
Health care108109100
Housing548196100
Transportation124126100
Utilities112127100

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

Knowing the cost of living in Rancho Palos Verdes allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Rancho Palos Verdes stands at 245, marking it 145% higher than the national average.

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 Rancho Palos Verdes 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, Rancho Palos Verdes falls into this category, which may not align with your goal of finding a budget-friendly living environment.

Housing costs are a very significant part of the Rancho Palos Verdes 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 448% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

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 Rancho Palos Verdes, you you will have to spend 16.2% more than average when compared to the typical prices for these items, making it a more expensive place to live.

The surge in grocery costs is indeed alarming, especially when groceries make up a large portion of your monthly expenditures. Over the past two years, there has been an inflation of over 10% in grocery prices. Unfortunately, Rancho Palos Verdes does not fare better, with grocery expenses coming in at 12.2% higher than the national average.

Is Rancho Palos Verdes Affordable?

Is Rancho Palos Verdes 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 Rancho Palos Verdes, for instance, where the median home price falls 554.7% higher than the national average, and monthly rent rates are 199.2% higher than usual. Additionally, median income levels contribute to the equation, with Rancho Palos Verdes flaunting a median household income of $146,163, 164.2% higher than the national norm.

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

Subsidies: Some cities and states may extend government subsidies or aid programs aimed at reducing the cost of living for their residents. These initiatives encompass diverse forms of support, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Regions with limited subsidy provisions may witness an increase in their overall cost of living.

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 Rancho Palos Verdes comes in at 12.4% higher than the national average.

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 Rancho Palos Verdes, the groceries index is 12.2% higher than the national average.

Where is the Data From?

The cost of living data in Rancho Palos Verdes 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 Rancho Palos Verdes is 76% higher than the California average
  • The cost of living in Rancho Palos Verdes is 145% higher than the national average
  • Rancho Palos Verdes housing is 448% 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 Rancho Palos Verdes

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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$161,169$13,431$3,760$4,836
      Renters$97,933$8,161$2,285$2,938
      A good way to judge both the affordability of the housing and the cost of living in Rancho Palos Verdes is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Rancho Palos Verdes has a median income of about $161,169 for people who own homes. Based on that number, a maximum of $3,760 should be spent on expenses related to housing. Renters have a slightly different median income, which is $97,933. Based on this average, renters should spend no more than $2,285 on all rental costs if they want to maintain a non-impoverished standard of living.

      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 Rancho Palos Verdes 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 Rancho Palos Verdes 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 Rancho Palos Verdes 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 Rancho Palos Verdes National avg. Difference
      Home Price $1,209,200.00$184,700.00554.7%
      Avg. Mortgage Payment $2,799.02$2,346.6919.3%
      Apartment Rent $2,839.00$949.00199.2%

      Transportation

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

      Utilities

      Item Rancho Palos Verdes 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.
      Willowbrook, CA24,40113333.3%
      Rolling Hills CDP, CA83213433.9%
      Compton, CA95,80413636.2%
      Florence-Graham, CA64,78713736.5%
      East Rancho Dominguez, CA15,25213736.7%
      Rancho Palos Verdes, CA41,635245145.3%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Mableton, GA41,6471043.7%
      La Quinta, CA41,65013939.2%
      Westfield, IN41,65211211.5%
      Woonsocket, RI41,6161076.6%
      Oakley, CA41,65615050.2%
      Rancho Palos Verdes, CA41,635245145.3%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.