Cost of Living in Temecula, CA

An Overview of Cost of Living in Temecula, CA

Understanding the cost of living in Temecula 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 Temecula cost of living index is 149, which is 49% 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 you prioritize affordability when seeking a new place to live, Temecula 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, Temecula falls into this category, which may not align with your preferences for a budget-friendly living environment.

When it comes to the cost of living in Temecula, 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 137.4% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

The things you purchase regularly, like clothes, haircuts, movie tickets and gym memberships, can make a big dent in your budget and make up 33% of the cost of living index. Unfortunately in Temecula, these items will cost you 12% more than what's considered the norm, making it a more expensive place to call home.

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 Temecula, it's the same story – grocery costs are 13.1% higher than what people pay across the country.

What Do Locals Say About the Cost of Living in Temecula?

Nobody knows their city better than the people who actually live there. So, we asked 33 local residents how they would rate the cost of living in Temecula and this is how they responded. 24% of people said that the cost of living was affordable, with prices decreasing, while 76% of people said that the cost of living was very expensive and prices continue to rise.

Is Temecula Affordable?

Is Temecula 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 Temecula, for instance, where the median home price falls 151.7% higher than the national average, and monthly rent rates are 103.9% higher than usual. Additionally, median income levels contribute to the equation, with Temecula flaunting a median household income of $98,631, 78.3% higher than the national norm.

What Factors can Influence the Cost of Living in Temecula?

Healthcare: Healthcare expenses and insurance premiums can vary significantly depending on the specific city or state. Factors such as accessibility to healthcare facilities, out-of-pocket expenses for doctor's visits, dental care expenses, prescription costs and specialized medical care fees can all influence the overall cost of living. In Temecula, healthcare costs are 1.2% lower than the national average.

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Temecula starts at 7.25% and the income tax rates start at 1%.

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.

Where is the Data From?

The Temecula cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.