Even in Los Angeles, where condos are typically seen as a more affordable housing option, recent data shows that middle-class buyers now struggle to meet rising cost thresholds.
According to real estate data firm ATTOM, as of March 2024, buyers in Los Angeles County would need to earn at least $162,300 annually to afford a condo. That figure includes mortgage payments, property taxes, and homeowners association (HOA) fees. It represents a 2% increase from the same period last year—and a 69% jump compared to 2019, before the pandemic.
The analysis assumes a condo buyer making a 10% down payment and spending 40% of their income on housing—higher than the standard 30% affordability guideline.
The steep income requirement stems from a combination of sharply rising home prices and interest rates in recent years.
In March 2024, the median sale price for a condo in LA County reached $725,000, up 1% from the previous year and up 37% compared to March 2019. Meanwhile, the average mortgage interest rate stood at 6.82%, slightly up from 6.75% the previous year but significantly higher than the 4.37% rate seen in 2019.
Buyers who put down just 10%—a common choice for those without large savings—can face even higher interest rates. Lenders often charge an additional 0.4 percentage points for such loans due to greater perceived risk.
Based on those figures, monthly mortgage payments for an LA condo now average $4,438. When factoring in property taxes, homeowners insurance, and HOA fees—estimated at 1.6% of the home’s price, or around $970 per month—the total monthly housing cost comes to approximately $5,410.
That’s $120 more per month than in 2023 and $2,210 more than in 2019.
Similar affordability gaps are seen across other Southern California counties. As of March, the estimated annual income needed to afford a condo was $189,000 in Orange County, $154,200 in San Diego County, $142,800 in Ventura County, $132,000 in San Bernardino County, and $119,400 in Riverside County
In comparison, the median price for a single-family home in LA County stood at $995,000, or $270,000 more than a condo. To afford a single-family home, buyers would need an estimated $187,300 in annual income.
As home prices and borrowing costs continue to outpace wage growth, even LA’s “starter homes” are becoming out of reach for many would-be buyers.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
