F
34%
Overall NAT. AVG.
13%
Goods & Services NAT. AVG.
80%
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 Palm Desert California National
Cost of living134140100
Goods & Services113111100
Groceries116112100
Health care105109100
Housing180196100
Transportation127126100
Utilities107127100

An Overview of Cost of Living in Palm Desert, CA

Understanding the cost of living in Palm Desert 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 Palm Desert cost of living index is 134, which is 34% 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 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 Palm Desert 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, Palm Desert 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 Palm Desert 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 79.7% more than the average city. This includes things like home and rent prices, 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, Palm Desert goods and services are 12.6% more expensive than the national average, leaving you with less money at the end of the month.

The cost of groceries continues to rise at an alarming rate. Over the last two years, grocery prices have increased by more than 10%! Unfortunately, in Palm Desert, the news isn't any better as grocery prices are 15.6% higher than the national average.

What Do Locals Say About the Cost of Living in Palm Desert?

The real experts on a city are its residents. That's why we reached out to 13 locals to get their views on the cost of living in Palm Desert. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 23% found it budget-friendly with decreasing prices, while 77% said it's simply not affordable as prices have continued to rise.

Is Palm Desert Affordable?

Is Palm Desert 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 Palm Desert is 95.6% higher than the national average, while the average monthly rent prices are 42.6% higher than average. The affordability of any location can also be influenced by median income levels. Palm Desert has a median household income of $64,295, which is 16.2% higher than the national average.

What Factors can Influence the Cost of Living in Palm Desert?

Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In Palm Desert, the transportation index is 27% higher than the national average.

Subsidies: Certain cities or states may implement government subsidies or assistance programs with the goal of alleviating the cost of living pressures on their residents. These programs encompass a broad spectrum of support mechanisms, 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 farming subsidies. Areas offering fewer subsidies may experience a rise in their cost of living.

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Palm Desert, the housing index stands at 79.7% higher than the national average.

Where is the Data From?

The cost of living data in Palm Desert 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 Palm Desert is 4% lower than the California average
  • The cost of living in Palm Desert is 34% higher than the national average
  • Palm Desert housing is 80% 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 Palm Desert

See all the best places to live around Palm Desert

Compare Palm Desert, 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$77,617$6,468$1,811$2,329
      Renters$42,871$3,573$1,000$1,286
      The affordability of the housing market in Palm Desert, 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 Palm Desert homeowners, the median income is $77,617. This indicates that a monthly maximum of $1,811 should be spent by homeowners on all housing related costs. Renters have a median income of $42,871. This indicates that renters would have a maximum of $1,000 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 Palm Desert National avg. Difference
      Haircut $26.92$24.2610.9%
      Beauty Salon $65.77$45.5644.3%
      Toothpaste $3.73$3.700.7%
      Shampoo $1.50$1.2817.1%
      Movie $16.89$12.1339.2%
      Bowling $24.67$18.0037.1%

      Groceries

      Item Palm Desert National avg. Difference
      Ground Beef $5.47$5.846.3%
      Fried Chicken $3.05$1.5793.7%
      Milk $4.98$4.676.5%
      Potatoes $4.94$4.930.0%
      Pizza $14.69$12.0921.5%
      Beer $11.25$10.418.1%

      Health Care

      Item Palm Desert National avg. Difference
      Optometrist $138.66$125.6810.3%
      Doctor $132.50$135.782.4%
      Dentist $121.37$113.297.1%
      Ibuprofen $12.01$10.6512.7%
      Lipitor $508.17$468.608.4%

      Housing

      Item Palm Desert National avg. Difference
      Home Price $361,200.00$184,700.0095.6%
      Avg. Mortgage Payment $5,168.91$2,346.69120.3%
      Apartment Rent $1,353.00$949.0042.6%

      Transportation

      Item Palm Desert National avg. Difference
      Gasoline $4.68$3.4635.1%
      Tire Balancing $64.40$59.927.5%

      Utilities

      Item Palm Desert National avg. Difference
      All Electricity $223.42$193.9915.2%
      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.
      Desert Edge, CA3,480928.0%
      Sky Valley, CA2,274991.5%
      Thermal, CA1,3711022.1%
      Thousand Palms, CA8,15811010.3%
      Garnet, CA5,56711211.8%
      Palm Desert, CA53,08713433.7%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      St. Cloud, FL53,1321044.4%
      Wheaton, IL53,15712727.2%
      Peabody, MA53,00414545.4%
      DeSoto, TX53,1701076.7%
      Pensacola, FL52,9181000.0%
      Palm Desert, CA53,08713433.7%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.