Los Angeles, CA

Most people can't afford to live in Los Angeles, according to Zip Recruiter and Yahoo Finance

Michael Loren

To say that Los Angeles is currently experiencing a housing bubble is a gross understatement. The Los Angeles housing market is less like a bubble and more like being plunged into a swimming pool full of angry, hungry pirañas. It's tough out there and living in Los Angeles is becoming less and less sustainable for the average worker.

Yahoo Finance recently released information that said the average price of a home in Los Angeles is expected to rise to $834,400 in 2022. That's a rise of 5.2 percent. Do you know what isn't rising at a rate of 5.2 percent? Salaries in Los Angeles.

According to Zip Recruiter, the average worker in the Los Angeles area is pulling down about $68,118 per year. That's about $1,309 per week. Assuming a home loan amount of $667,520 (with 20% down on an average-priced home), residents of Los Angeles are paying an average of $3,078 per month on their mortgages.

When you compare the average salary and the average home price, they don't add up to a sustainable lifestyle. In the example above, this leaves the average person in Los Angeles paying 59% of their income toward their housing costs (and this example does not include what the average resident of Los Angeles pays in taxes).

In short, this housing bubble is not sustainable. Yes, there are families with multiple incomes, but if they have children, they're likely paying for childcare as well (which will cost families around $1,412 per month in California). And if you add to that health insurance costs, transportation costs, rising food prices, and all other expenses that average families accumulate, well, it might be worthwhile to consider a different city.

As many jobs transition to digital iterations of their former selves and as housing prices continue to rise in Los Angeles and other major cities around the country, the "great migration" of families to other, smaller locations continues. California residents are flocking to lower-priced markets in states like Texas, North Carolina, Florida, and Virginia. And there doesn't seem to be an end to this migration in sight.

Will extremely expensive major cities like New York and Los Angeles eventually become overpriced shells of their former selves as the customers who drive their high prices continue to move? Perhaps. Will something eventually have to give in order for residents of Los Angeles to thrive and support themselves and their families? Yes.

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Professional writer and journalist with concentration in data analysis. I specialize in interpreting data to give you unbiased, understandable information related to the state of California.

Los Angeles, CA

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