F
49%
Overall NAT. AVG.
12%
Goods & Services NAT. AVG.
137%
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 Temecula California National
Cost of living149140100
Goods & Services112111100
Groceries113112100
Health care99109100
Housing237196100
Transportation124126100
Utilities94127100

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.

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Cost Of Living Quick Facts

  • The cost of living in Temecula is 7% higher than the California average
  • The cost of living in Temecula is 49% higher than the national average
  • Temecula housing is 137% 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 Temecula

See all the best places to live around Temecula

Compare Temecula, 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$112,617$9,385$2,628$3,379
      Renters$71,794$5,983$1,675$2,154
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Temecula, CA, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Temecula, homeowners have a median income of $112,617. Using that number, a maximum of $2,628 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $71,794, which means there is a maximum of $1,675 to be spent on the costs of renting a home or apartment.

      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 Temecula National avg. Difference
      Haircut $27.27$24.2612.4%
      Beauty Salon $41.78$45.568.3%
      Toothpaste $3.61$3.702.6%
      Shampoo $1.34$1.284.9%
      Movie $11.04$12.139.0%
      Bowling $21.11$18.0017.3%

      Groceries

      Item Temecula National avg. Difference
      Ground Beef $5.89$5.840.8%
      Fried Chicken $3.49$1.57121.9%
      Milk $4.92$4.675.4%
      Potatoes $4.92$4.930.3%
      Pizza $15.31$12.0926.6%
      Beer $10.26$10.411.4%

      Health Care

      Item Temecula National avg. Difference
      Optometrist $112.92$125.6810.2%
      Doctor $95.50$135.7829.7%
      Dentist $117.28$113.293.5%
      Ibuprofen $10.58$10.650.7%
      Lipitor $521.17$468.6011.2%

      Housing

      Item Temecula National avg. Difference
      Home Price $464,900.00$184,700.00151.7%
      Avg. Mortgage Payment $2,441.43$2,346.694.0%
      Apartment Rent $1,935.00$949.00103.9%

      Transportation

      Item Temecula National avg. Difference
      Gasoline $4.75$3.4637.3%
      Tire Balancing $61.38$59.922.4%

      Utilities

      Item Temecula National avg. Difference
      All Electricity $378.97$193.9995.4%
      Phone $180.31$192.256.2%
      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.
      Pala, CA1,09411211.7%
      Warm Springs, CA1,44511414.4%
      Lakeland Village, CA12,36212928.6%
      Menifee, CA92,96813333.3%
      Lake Elsinore, CA64,20113333.3%
      Temecula, CA113,11714948.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Costa Mesa, CA112,95818787.4%
      Delta, BC112,691n/a 
      Clovis, CA112,66312828.2%
      Peoria, IL112,6448911.3%
      Spring Hill, FL113,742963.9%
      Temecula, CA113,11714948.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.