Cost of Living in Alhambra, CA

An Overview of Cost of Living in Alhambra, CA

Getting a feel for the cost of living in Alhambra is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Alhambra is 167, which is 67% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

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

When it comes to the cost of living in Alhambra, 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 186.1% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Alhambra goods and services are 16.2% more expensive than the national average, leaving you with less money at the end of the month.

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 Alhambra, it's the same story – grocery costs are 12.2% higher than what people pay across the country.

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

The real experts on a city are its residents. That's why we reached out to 7 locals to get their views on the cost of living in Alhambra. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 71% found it budget-friendly with decreasing prices, while 29% said it's simply not affordable as prices have continued to rise.

Is Alhambra Affordable?

Is Alhambra an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Alhambra is 241.2% higher than the national average, while the average monthly rent prices are 57.5% higher than average. The affordability of any location can also be influenced by median income levels. Alhambra has a median household income of $66,593, which is 20.4% higher than the national average.

What Factors can Influence the Cost of Living in Alhambra?

Utilities: Much like any other costs, utility expenses can exhibit considerable variations, influenced by factors such as climate, available energy sources, geographic location and state regulations. The costs associated with electricity, water, heating, and waste disposal can vary significantly depending on the city or state in question. In Alhambra, the utilities index stands at 12.4% higher than the national average.

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Alhambra, the prevailing sales tax rate starts at 7.25%, and income tax rates kick off at 1%.

Housing: When there's a high demand for housing in trendy places, it can cause property prices and rental rates to soar, leading to a significantly higher cost of living. Conversely, in less desirable locations, where demand is low, prices tend to decrease, resulting in a more budget-friendly cost of living. In Alhambra, the housing index is 186.1% higher than the national average.

Where is the Data From?

The Alhambra 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. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.