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. Carmel-by-the-Sea has a large stock of pre-World War II architecture, 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: 15.67% 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 a major vacation destination. Much of the city’s population is seasonal: many people own second homes and only live there part-time, during the vacation season. The effect on the local economy is that many of the businesses are dependent on tourist dollars, and may operate only during the high season. As the vacation season ends, Carmel-by-the-Sea’s population drops significantly, such that year-round residents will notice that the city is a much quieter place to live.

In addition, Carmel-by-the-Sea is home to many people who could be described as "urban sophisticates", which are people who are not only wealthy and employed in professional occupations, but highly educated to boot. Urban sophisticates have urbane tastes - whether they reside in a big or small city, a suburb, or a little town. Urban sophisticates support bookstores, quality clothing stores, enjoy luxury travel, and in big cities, they are truly the patrons of the arts, attending and supporting institutions such as opera, symphony, ballet, and theatre.

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.

Compared to the rest of the country, citizens of Carmel-by-the-Sea spend much less time in their cars: on average, their commute to work is only 14.34 minutes. This also means that noise and pollution levels in the city are less than they would otherwise be.

Being a small city, Carmel-by-the-Sea does not have a public transit system used by locals to get to and from work.

If knowledge is power, Carmel-by-the-Sea is a pretty powerful place. 76.01% 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 $87,422, which is wealthy relative to California and the nation. This equates to an annual income of $349,688 for a family of four.

Carmel-by-the-Sea is a somewhat ethnically-diverse city. 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 English, German, Irish, Norwegian, and Scottish.

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