Palms, a neighborhood in Los Angeles, California, is classified as a "High Diversity" community. As of 2022, no racial group exceeds 40% of the population. The demographic composition includes White (40%), Asian (23%), and Hispanic (22%) populations. The neighborhood has experienced economic growth, with median income increasing from $66,487 in 2013 to $84,026 in 2022. Palms' proximity to major tech and entertainment hubs has likely contributed to its diverse population.

Over the past decade, Palms has maintained its "High Diversity" status. The White population has remained relatively stable between 38-40%. The Asian population increased slightly from 22% in 2013 to 23% in 2022. The Hispanic population decreased from 27% in 2013 to 22% in 2022. The Black population increased from 7% in 2013 to 8% in 2022. The population identifying as two or more races increased from 4% in 2013 to 6% in 2022. These shifts indicate a trend towards greater diversity, with a decline in the Hispanic population offset by increases in Asian, Black, and multiracial populations.

The neighborhood experienced significant economic growth, with median income increasing by 26.4% from 2013 to 2022. This growth correlates with demographic changes. The increase in Asian population coincides with rising median incomes, potentially reflecting an influx of high-skilled workers in tech and professional sectors. The decline in the Hispanic population percentage may relate to gentrification pressures as the area becomes more expensive. The rise in multiracial population could indicate increasing interracial relationships and families, often associated with diverse, economically vibrant urban areas.