Is It Affordable to Live in Los Angeles, CA?

The Short Answer

For most people, no. With an affordability score of just 12 out of 100, Los Angeles is in a housing affordability crisis. The median home price of $950K requires an annual income of about $273K to buy comfortably — well above what most residents earn.

Housing Costs vs. National Average

Home prices in Los Angeles are 132% above the national median of $410K. Rent is 60% above the national median of $1,500/month.

The price-to-income ratio in Los Angeles is 14x, meaning the median home costs 14 times the median household income. Financial experts generally consider anything above 5x to be unaffordable.

Income You Need

To comfortably purchase the median home in Los Angeles (spending no more than 28% of gross income on housing), you'd need an annual household income of approximately $273K. The median household income in Los Angeles is $68K — a gap of $205K.

For renters, you'd need about $96K per year to keep rent at or below 30% of income. Currently, 40.0% of renters are cost-burdened (spending more than 30% on rent).

Market Trends

Home prices changed by 5.0% year-over-year, while rents shifted by 4.5%. The market is heating up, making affordability worse for new buyers.

Similar Cities to Compare

These cities have similar affordability profiles to Los Angeles: