CA Cities Lead Nation In 2025 Holiday Spending, WalletHub Finds

Several California cities are expected to spend more on the holidays this year than most of the country, according to a new WalletHub analysis that ranked communities by their projected 2025 holiday budgets.

The personal finance website compared more than 550 U.S. cities using factors such as income, savings and debt levels to estimate how much residents can comfortably spend this holiday season. California dominated the top of the list.

Palo Alto ranked No. 1 in the nation, with an estimated holiday budget of $4,485 — the highest of any city surveyed. WalletHub attributed the projection to the city’s high median household income and comparatively strong savings levels.

Mountain View came in second, with residents expected to spend $4,266. Then came Milpitas, which followed closely among medium-sized cities, with residents expected to spend an average of $3,702.

“Depending on the city, an American’s holiday budget this year can range anywhere from just over $200 to more than $4,000, taking into account residents’ income, their existing debt obligations and the cost of living," said Chip Lupo, a WalletHub analyst.

WalletHub’s researchers say the Golden State’s strongest scores came from communities with high incomes relative to expenses, leaving residents more discretionary money for travel, gifts and celebrations. But the study also noted that high spending averages don’t necessarily reflect individual households, many of which continue to face inflation pressures and rising living costs.

Statewide, experts advise Californians to review their budgets before diving into seasonal spending. Even in affluent cities, large holiday budgets can lead to post-season financial strain if credit card debt balloons, WalletHub said.

WalletHub’s full report, including budget estimates for all ranked California cities, is available here.

Here are the cities in California that were likely to have the highest holiday budgets in California, according to WalletHub:

1. Palo Alto - $4,485

2. Mountain View - $4,266

3. Milpitas -$3,702

4. Sunnyvale - $3,691

5. Santa Clara - $3,690

6. Redwood City - $3,627

7. Fremont - $3,574

8. Livermore - $3,439

9. San Mateo - $3,313

10. Alameda - $3,104