Los Angeles is America's third least-affordable city for housing, an annual analysis from personal finance site Interest.com has found.
L.A. continually ranks among the worst cities in the United States for real estate and rental costs, especially when our low, per capita income of $27,900 comes into play. That really won't even get you an average, two-bedroom apartment, which rents for about $1,400.
According to an Interest.com representative, the median L.A. household would have to take in nearly one-third more in income in order to afford a median-priced home here:
The median household income in the L.A. area falls short of the income required to purchase a median-priced home in the L.A. area by 32%. That’s slightly worse than last year.
Yeah, it appears the housing crisis in Los Angeles is not getting any better.
The economic recovery from the Great Recession has blindsided Angelenos with nearly worst-in-the-nation rents and home prices.
According to Interest.com, L.A. has the third highest median home price, $420,300, in the United States. We were beaten only by number one San Francisco, at $769,600, and number two San Diego, at $504,200.
Weighing the gap between median income and median home prices, Insurance.com concluded that L.A. was tied with New York as the third least affordable city. San Francisco made number one and San Diego came in second.
Yeah, it's hard out here for a Californian.
The site says that prices of the type seen in L.A. “are likely to remain beyond the reach of all but the wealthiest families for the foreseeable future.”
Happy house hunting.