The Los Altos Hills ZIP code 94022 appeared on the 2017 Forbes list of America's most expensive ZIP codes; 94022 was ranked the 3rd most expensive in the United States, with a median home price of $7,755,000. In 2019, a Bloomberg analysis ranked Los Altos Hills the fourth richest town in the United States.
Los Altos Hills has a ban on commercial zones, which was upheld by the California Court of Appeal (First District) in 1973. The town's two retail commercial operations are the book store on the campus of Foothill College and the gift shop on the grounds of the Immaculate Heart Monastery of the Poor Clare Colettines. The town does not have a post office or library, with mail delivery provided from nearby Los Altos.
The town's zoning regulations require a minimum lot size of one acre (4,000 m²), setbacks from the property boundary, and easements for public pathways. Landowners are limited to one primary dwelling per lot, which effectively bans multifamily housing; this ban and the minimum lot size were upheld as constitutional by the U.S. Court of Appeals for the Ninth Circuit in 1974.
The town contracts with Santa Clara County for police and fire services, making it a so-called "contract city" under California law.
Los Altos Hills is served by both the Palo Alto Unified School District (serving the northern part of the town) and the Los Altos School District (serving the southern part of the town). In 2008 the Los Altos School District reopened Gardner Bullis School, a public elementary (K-6) grade school in Los Altos Hills.
Ventana School is a private pre-school and elementary school modeled around the Reggio Emilia approach. Pinewood is a private coeducational K-12 school. The Pinewood School Upper Campus is also located in Los Altos Hills, serving students in grades 7-12.