Cost of Living in Palm Springs, CA

With a cost of living index of 129, Palm Springs, CA is a notably expensive place to live. Living here is 29% more expensive than the national average and 15% below the California state average of 144. With a population of 44,998, Palm Springs is a mid-sized community that balances access to services with a more manageable cost of living compared to larger metros.

Housing costs are the biggest factor in Palm Springs's cost of living. The median monthly rent is $1,473 (12% above the US median of $1,319), and the median home value sits at $567,300 (86% above the national median of $304,900). At current prices, the median home costs roughly 7.9x the median household income — a challenging ratio that puts homeownership out of reach for many residents.

The median household income in Palm Springs is $71,979, which is 4% lower than the national median of $75,149. Residents spend roughly 25% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum.

Climate is another factor for anyone considering a move to Palm Springs. The area sees an average annual temperature of 75.6°F, with summers averaging 92°F and winters around 59°F. Annual rainfall totals 4.6 inches spread over roughly 17 days. Hot summers are common, which can affect utility costs and lifestyle.

Everyday prices in the Riverside-San Bernardino-Ontario, CA (Metropolitan Statistical Area) metro area tend to run above the national average. Out of 6 common grocery and utility items tracked by the Bureau of Labor Statistics, 6 are priced higher than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.