Overview of El Dorado Hills
Tucked into the oak‑studded Sierra Foothills about thirty minutes east of Sacramento, El Dorado Hills combines small‑town ease with postcard views of Folsom Lake and the distant Sierras. Locals love to brag that the community still feels like the old ranchland it once was, even though master‑planned neighborhoods keep stretching north and south along Highway 50.
The latest census numbers peg the median household income at roughly $163,500, nearly double what families take home across Greater Sacramento. That purchasing power has pushed the town’s population past 50,000 residents without stripping away its laid‑back, outdoorsy vibe.
Growth started in the 1980s when developers realized that professionals willing to commute to Sacramento, or telecommute to the Bay Area, wanted bigger lots, top‑tier school district scores, and room for toys like bass boats and trail bikes.
Today, the area’s reputation for luxury property, safe neighbourhood streets, and year‑round recreation frames almost every conversation about the cost of living in El Dorado Hills.
Housing Market in El Dorado Hills
Median Home Prices
Sticker shock is real.
In June 2025, the median listing price landed at $988,500, with a median price per square foot of $367.
The broader Zillow Home Value Index shows an average value of $930,537, down just 1.1 percent year over year, which means prices have essentially plateaued rather than crashed.
Comparison to Nearby Areas
If you compare those figures to neighboring markets, the spread becomes clear.
Folsom sits at about $789,000 for a typical listing, while core Sacramento clocks in near $497,000, less than half the price of many homes for sale in El Dorado Hills.
Even pricier corners of Roseville average below El Dorado Hills, which helps explain why buyers with Bay Area salaries often see the foothills as a value play rather than an extravagance.
Recent Trends in the Market
Over the past twelve months, the real estate market in El Dorado has cooled but not frozen.
Redfin tracks a median sale price of $995,000, off 5.7 percent year over year, yet homes still close in about three weeks and inventory remains tight.
New construction in gated enclaves like Serrano keeps a steady pipeline of luxury product, but resale inventory below a million moves fastest.
Sitting ten or fifteen percent above California’s statewide median of roughly $866,000, El Dorado Hills remains one of the wealthier pockets in El Dorado County.
Cost of Living in El Dorado Hills
Utilities and Taxes
The cost of living calculator at PayScale pegs overall expenses at about 60 percent higher than the national average, with utility prices soaring 71 percent above what the rest of the country pays.
On the tax side, property owners face an effective rate around 1.07 percent, just a hair above the national median, but because home values are high, annual bills often top $10,000.
Groceries, Gas, and Other Essentials
Sites like AreaVibes calculate that core expenses run 71 percent higher than the national average, with groceries alone spiking thanks to California fuel and labor costs.
Fuel isn’t cheap either—unleaded in Greater Sacramento regularly sits fifty cents above the U.S. mean. A basic SacRT monthly transit pass costs $100, though most locals drive.
Renters also feel the pinch. Apartments.com shows an average rent of $2,154 per month for a one‑bedroom, 32 percent higher than the national figure and roughly level with mid‑market Bay Area suburbs.
Comparison with State and National Averages
Put simply, El Dorado Hills is more expensive than the national average in nearly every category.
Housing costs run 139 percent above national norms, transportation 44 percent higher, and utilities nearly double.
Compared with California as a whole, the town’s housing premium is offset somewhat by lower county‑wide sales tax and fewer special assessments, yet total household expense still trends about 14 percent higher than statewide averages.
Lifestyle and Amenities
Education and Schools
Families often cite schools as their number‑one factor for moving here. Niche ranks Oak Ridge High in the top quarter of all California public high schools, and several elementary campuses carry A grades.
High scores translate into demand, which helps prop up property values and, by extension, the overall price of living in El Dorado Hills , CA.
Parks, Recreation, and Entertainment
Weekends revolve around Folsom Lake, the El Dorado Hills Community Park, and miles of Serrano’s private trails.
Annual passes to the lake’s state recreation area run about the same as a month of Bay Area bridge tolls, a trade‑off most locals happily accept.
Outdoor fun keeps entertainment costs moderate, though country‑club memberships at Serrano or the Lake Natoma Rowing Center can nudge monthly budgets upward.
Dining and Shopping
The Town Center retail hub mixes chains with farm‑to‑fork spots where dinner for two can easily hit triple digits, reflecting the higher local salary base.
Weekly shopping runs at places like Nugget Markets or Raley’s, one town over, often eclipse what you’d spend in central Sacramento, reinforcing the idea that daily life here carries a premium.
Factors Driving El Dorado Hills’ Expenses
Desirable Location and Scenic Views
Sweeping views across Folsom Lake into the Valley mean lots that would be ordinary elsewhere sell at a premium here.
Limited buildable land bounded by oak woodlands and the American River Parkway keeps the listing supply tight, which pushes prices upward whenever demand from the Bay Area surges.
High Quality of Life
Crime rates are low, schools shine, and neighborhood associations maintain manicured streets.
These amenities attract executives and remote workers who can afford higher costs, reinforcing a cycle of wealthy migration that keeps housing costs in El Dorado from dropping even when interest rates climb.
Is El Dorado Hills Worth the Price?
Pros of Living in El Dorado Hills
If your annual income comfortably exceeds the national median, you gain quiet suburban living, quick trail access, and top‑notch schools without sacrificing proximity to downtown Sacramento or Tahoe ski resorts.
The real estate market holds value better than many California exurbs, and resale demand remains consistent.
Cons of Living in El Dorado Hills
Higher costs in El Dorado Hills stretch budgets for everyone else. Entry‑level buyers may struggle to find anything under $750,000, and even modest ranch homes can command luxury‑level mortgages.
Commuters also face Highway 50 traffic, and utility bills that run higher than those in many coastal markets despite the foothill climate.
So, is El Dorado Hills an expensive area?
By almost every metric—housing, taxes, groceries, and utilities—the answer is yes.
Yet many residents argue that the premium buys a rare blend of scenic beauty, strong community, and a real estate market that holds its own against downturns in California and the nation.
If your budget aligns with the local average cost of living and you value outdoor lifestyle over urban nightlife, the foothills might feel like a bargain. Everyone else may find better value by house‑hunting in nearby Cameron Park or Greater Sacramento.
FAQ’s About the Cost of Living in El Dorado Hills
How much salary do I need to live comfortably in El Dorado Hills?
Most planners suggest spending no more than thirty percent of gross income on housing.
With median rent around $2,150 per month or a mortgage on a $900,000 home, households often target gross earnings of $125,000–$150,000. High earners, clearing the local median household income of $163,500, have more breathing room.
Are property taxes higher here than in other parts of California?
The county’s effective rate sits near 1.07 percent, lower than parts of the Bay but slightly above the national average. Because home values are high, the typical tax bill still tops four thousand dollars a year.
Is the cost of living only about housing?
No. Utility bills chart seventy‑plus percent above U.S. norms, groceries run about twenty percent higher, and gas often costs more than five dollars a gallon, all of which raise total household expenses.
How do schools influence housing prices?
Top‑rated campuses boost demand.
Buyers seeking strong school scores compete for limited inventory, especially in micro‑markets like Serrano Village, which lifts listing prices faster than in regions with average academics.
Is renting a cheaper alternative to buying?
Rent can feel cheaper upfront, yet average rents here are already thirty‑plus percent above the U.S. mean and continue to track upward each quarter, so long‑term renters may pay nearly the same as owners once tax benefits are considered.
