Carmel-by-the-Sea is a very small coastal city (i.e. on the ocean, a bay, or inlet) located in the state of California. With a population of 3,104 people and two associated neighborhoods, Carmel-by-the-Sea is the 601st largest community in California. Much of the housing stock in Carmel-by-the-Sea was built prior to World War II, making it one of the older and more historic cities in the country.

Carmel-by-the-Sea home prices are not only among the most expensive in California, but Carmel-by-the-Sea real estate also consistently ranks among the most expensive in America.

Of important note, Carmel-by-the-Sea is also a city of artists. Carmel-by-the-Sea has more artists, designers and people working in media than 90% of the communities in America. This concentration of artists helps shape Carmel-by-the-Sea’s character.

One interesting thing about the economy is that relatively large numbers of people worked from their home: 18.32% of the workforce. While this number may seem small overall, as a fraction of the total workforce this is high compared to the rest of the county. These workers are often telecommuters who work in knowledge-based, white-collar professions. For example, Silicon Valley has large numbers of people who telecommute. Other at-home workers may be self-employed people who operate small businesses out of their homes.

Another notable thing is that Carmel-by-the-Sea is an extremely popular destination for tourists and seasonal residents. So much of the population is seasonal such that the city’s population swells significantly during the vacation season, and drops again when the season ends. Because of this, much of the local economy is centered around tourism; some businesses may be operated only during the high season. During the low season, year-round residents will notice that the city is a substantially quieter place to live.

In addition, Carmel-by-the-Sea is home to many people who could be described as "urban sophisticates". Urban sophisticates are people who are both educated and wealthy, and thus tend to be older, richer, and more established than young professionals. "Urban sophisticates" is not just about being educated and well-off financially: it is a point of view and state of mind, one that you might call 'urbaneness'. But such people can and do regularly live in small towns, suburbs and rural areas, as well as in big cities. They read, support the arts and high-end shops, and love travel.

Carmel-by-the-Sea is also nautical, which means that parts of it are somewhat historic and touch the ocean or tidal bodies of water, such as inlets and bays. Quite often, nautical areas such as these attract visitors and locals who come to enjoy the scenery and various waterfront activities.

One of the benefits of Carmel-by-the-Sea is that there is very little traffic. The average commute to work is 16.26 minutes, which is substantially less than the national average. Not only does this mean that the drive to work is less aggravating, but noise and pollution levels are lower as a result.

As is often the case in a small city, Carmel-by-the-Sea doesn't have a public transportation system that people use for their commute.

If knowledge is power, Carmel-by-the-Sea is a pretty powerful place. 76.02% of the adults in Carmel-by-the-Sea have earned a 4-year college degree, masters degree, MD, law degree, or even PhD. Compare that to the national average of 21.84% for all cities and towns.

The per capita income in Carmel-by-the-Sea in 2022 was $84,508, which is wealthy relative to California and the nation. This equates to an annual income of $338,032 for a family of four.

The people who call Carmel-by-the-Sea home describe themselves as belonging to a variety of racial and ethnic groups. The greatest number of Carmel-by-the-Sea residents report their race to be White, followed by Asian. Important ancestries of people in Carmel-by-the-Sea include German, English, Irish, Scottish, and Norwegian.

The most common language spoken in Carmel-by-the-Sea is English. Other important languages spoken here include Spanish and German/Yiddish.