Los Angeles has the most unaffordable rental market in the US, it’s been bad and getting worse for decades, and all the terrible nationwide trends in rental unaffordability are magnified in LA, according to a cheerful new study from the UCLA Luskin School of Public Affairs. The report is perhaps most appalled that the average Los Angeles renter had to pay 47 percent of their income toward rent last year (30 percent is the recommended amount), but that’s really only the start of the appallingness:
Los Angeles has been majority renter since 1970 and now has the highest rental rate in the country at 52 percent. The national rental rate is about 35 percent.
Los Angeles homeowners earn 2.16 times as much as renters. That’s only slightly higher than the most recent national figures, but in LA, “owners have made twice as much as renters off-and-on since 1980.”
Owner incomes rose 25 percent in Los Angeles and 23 percent nationwide between 1970 and 2011. Renter incomes in LA rose just 5 percent over that time and fell 15 percent nationwide. (Most of the gains were made before 1990.)
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”