Living in Los Angeles now means devoting nearly a third of household income to housing — one of the highest cost burdens in the country.
On average, Los Angeles households earn about $10,855 a month but spend $3,523 of it on housing expenses, or 32.5% of their income. Once that ratio passes 30%, economists say, families are considered “house poor.”
That share places Los Angeles fourth among major U.S. cities for housing cost burden, trailing Hialeah, Florida (36.9%), New York City (33%), and New Orleans, Louisiana (32.6%), according to a new analysis by Consumer Affairs.
Despite ranking fourth, Los Angeles had the highest average housing costs among the top ten cities. Homeowners here earn a median income of $130,265, yet face a median home value of $947,900, highlighting the city’s persistent affordability gap.
Even with a relatively low property tax rate of 0.69%, the average annual tax bill reached $6,918, about 93% higher than the national median. From 2023 to 2024, housing costs in Los Angeles rose 3.8%, while homeowner income slipped 0.1%, pushing the cost-to-income ratio from 31.2% to 32.5% in just one year.
“When one-third of income goes toward housing, there’s little left for savings or emergencies,” said Dana Edens, a spokesperson for Consumer Affairs.
Separate research from Property Shark shows Los Angeles also leads the nation in expensive neighborhoods. Of the 120 U.S. ZIP codes with the highest home prices, California accounted for 73, and Los Angeles County alone had 17, more than any other county.
In Los Angeles, Santa Monica (90402) recorded a median home price of $4.86 million, ranking 12th nationwide. Beverly Hills (90210) followed at $4.35 million, and Bel Air (90077) ranked 26th.
Financial experts urge homeowners to budget for hidden costs such as property taxes and insurance and to follow the “28 percent rule” — keeping housing costs below 28% of income to preserve long-term financial stability.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
