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[Tripon]

http://la.curbed.com/2016/5/17/11692852/los-angeles-rent-affordability

Los Angeles has already taken its place at the top of the ranks of cities where it sucks to be a renter, but it's only rough if you don't bring home a hefty paycheck, says a new survey from personal finance site SmartAsset. Using the 30 percent metric (the rule of thumb that says that no more than 30 percent of income should go toward housing, including utilities and rent, and that any more makes rent unaffordable and burdensome), SmartAsset calculated what a household would need to make to meet that requirement, spending 28 percent of their income on rent alone (with 2 percent left over for other for utilities and related expenses).

SmartAsset looked at the average cost for an available, market-rate, two-bedroom rental, and what they found was that the average rental in that category cost $3,398 a month. With a pricetag like that, the average household would have to bring in $145,629 annually to pay the rent.

 

[A Fish Aficionado]

Can they break it down by neighborhood?
LA is a pretty big place.

 

[Guevara]

My entire professional life has been in NY or SF, so that sounds great to me.

 

[Dennis]

Millennials are going to get rekt.

 

[ZackieChan]

Can they break it down by neighborhood?
LA is a pretty big place.

Yep. There's a ton of outlying cities, as well, that are more affordable.

 

[entremet]

Can they break it down by neighborhood?
LA is a pretty big place.

They're not. Same reason they're not doing that for NYC or the cities.

There's a huge world of difference in rents from the South Bronx to the West Village.

 

[NeOak]

Millennials are going to get rekt.

You're like, 10 years late

 

[Toki767]

I don't know why people would want to live in LA proper when there are way better surrounding cities.

 

[luoapp]

So, why do you need 145629 - 3398*12 = 104853 to live in LA besides rental? That's 105k for what exactly?

 

[Slayven]

Where at in ATL?

 

[Tripon]

So, why do you need 145629 - 3398*12 = 104853 to live in LA besides rental? That's 105k for what exactly?

Because it's assuming you only want to spend 28%

 

[Eusis]

So, why do you need 145629 - 3398*12 = 104853 to live in LA besides rental? That's 105k for what exactly?

It's recommended to have a third of your income go to rent. There's still got to be bills, and frankly if you're paying that to live in DTLA you may as well live it up some or try to.

 

[cpp_is_king]

So, why do you need 145629 - 3398*12 = 104853 to live in LA besides rental? That's 105k for what exactly?

Say 30% goes to taxes. So you're actually only bringing home 101,940. After rent it's 40,776. Divided by 12 is $3.3k / month. That needs to cover car maintenance, food, gas, utilities, and everything else.

 

[j0hnnix]

Where at in ATL?

I'm assuming areas like Midtown, Brookhaven, Downtown Atlanta. No matter how much it is I don't want to deal with the traffic in those areas.

 

[luoapp]

Because it's assuming you only want to spend 28%

It's recommended to have a third of your income go to rent. There's still got to be bills, and frankly if you're paying that to live in DTLA you may as well live it up some or try to.

Then I suggest whoever wrote this piece to take ECO101.

 

[Striek]

Because it's assuming you only want to spend 28%

It's recommended to have a third of your income go to rent. There's still got to be bills, and frankly if you're paying that to live in DTLA you may as well live it up some or try to.

The rule is pretty bullshit lol. Expenses don't scale with income like that.

More like 150k and you are rich, saving good money whilst living it up, even in LA, if you rent a 2BR appt.

 

[SpecX]

What surprises me even more is seeing Riverside on this list. Who would pay that much rent to stay in that shithole.

 

[Tripon]

Then I suggest whoever wrote this piece to take ECO101.

What? A third for rent/housing has traditionally been recommended. It's only until recently that you seen people have that you had to pay around 50% for rent.

 

[Stinkles]

Everyone in LA is lonely.




why world they need two bedrooms?

 

[Pryce]

Riverside?

 

[Vigilant Walrus]

Isn't it better to just move to Detroit and spend all your money on Amiibos and guns?

 

[oc]

Riverside?

yeah.. why?

 

[bLackstar]

I live in Riverside and this list is pretty much spot on.

Currently paying 1245 for 2bed/2bath.

 

[AbortedWalrusFetus]

Are these metro area or city limits numbers? Cause Philly is a looot cheaper than that if you're only going by city limits.

 

[Vicetrailia]

I wonder if many people are even spending 30% of their income. They gathered some data where I live and more people than I'd thought spend around 50%.

 

[ryutaro's mama]

Everyone in LA is lonely.

No LA Freeze, unlike Seattle.

 

[cpp_is_king]

Honestly anyone paying that much in San Francisco needs to have their head examined. You can buy a 1.2 million dollar house in San Jose that's 3-4 bedrooms in a nice area, and pay the same amount per month except you own the house and in 10 years you'll double your money

 

[Slayven]

I'm assuming areas like Midtown, Brookhaven, Downtown Atlanta. No matter how much it is I don't want to deal with the traffic in those areas.

ATL traffic will make you want to leave your car in the middle of the street on fire.

 

[Escape Goat]

Property values skyrocketed in Dallas recently. Its been insane.

 

[unholyrevenger72]

Honestly anyone paying that much in San Francisco needs to have their head examined. You can buy a 1.2 million dollar house in San Jose that's 3-4 bedrooms in a nice area, and pay the same amount per month except you own the house and in 10 years you'll double your money

it's not about money, it's about time. Yes you can live in san jose for less money, but how much of "your time" is lost in commute between SJ and SF

 

[cpp_is_king]

it's not about money, it's about time. Yes you can live in san jose for less money, but how much of "your time" is lost in commute between SJ and SF

Don't work in SF then? There's thousands of jobs in the peninsula and south bay. Mountain View, Palo Alto, Santa Clara, tons of jobs everywhere

 

[Vicetrailia]

Don't work in SF then? There's thousands of jobs in the peninsula and south bay. Mountain View, Palo Alto, Santa Clara, tons of jobs everywhere

You're just moving the goal posts. Next you'll tell someone to move to another state.

 

[smokeandmirrors]

Don't work in SF then? There's thousands of jobs in the peninsula and south bay. Mountain View, Palo Alto, Santa Clara, tons of jobs everywhere

problem solved everyone. we can go home.

 

[unholyrevenger72]

Don't work in SF then? There's thousands of jobs in the peninsula and south bay. Mountain View, Palo Alto, Santa Clara, tons of jobs everywhere

And the reason those jobs exist no one want give up their time commuting to those jobs. People move to where the work is if they can afford to move there, and that's problem is we allow businesses to group together creating these out of control rent prices.

 

[Tagyhag]

That's honestly less than I thought for LA, but it really depends on what kind of area of LA they're talking about.

There's Compton, and then there's Porter Ranch. What kind of average are they using?

 

[cpp_is_king]

You're just moving the goal posts. Next you'll tell someone to move to another state.

Are you even familiar with the Bay Area? It's like 30 miles away, it's all Silicon Valley

 

[WonkyPanda]

This is pretty deceiving. Areas like Glendale do not have a median rent price of over 3k+

 

[Tripon]

This is pretty deceiving. Areas like Glendale do not have a median rent price of over 3k+

Glendale is a pretty expensive area to live, bruh.

 

[tiggerkiddo]

Shocked Denver didn't make it onto the list of cities with the quickest raising rent. Prices are going up the wazoo here.

 

[R10Neymarfan]

What city isn't raising their rent. Seems like every major one is.

 

[unholyrevenger72]

That's honestly less than I thought for LA, but it really depends on what kind of area of LA they're talking about.

There's Compton, and then there's Porter Ranch. What kind of average are they using?

They're using the City of LA , as opposed to LA County.

 

[WonkyPanda]

Glendale is a pretty expensive area to live, bruh.

Even for being "expensive," Glendale is not as expensive as downtown proper: https://www.rentjungle.com/average-rent-in-glendale-ca-rent-trends/

 

[Himynameischris]

Downtown LA? Sure...but I would never live there and certainly not at those prices, there are tons of other good places you can move to that won't cost you that much and everyone already drives in LA so distance is hardly an issue.

 

[SolarPowered]

Millennials are going to get rekt.

Millenials been rekt since the start.

 

[Dr. Feel Good]

I have a two bedroom in Hollywood at $3,050. Unfortunately we have four people living in there and we are three 27 year olds and a 22 year old. Need to pay off student debt.

 

[DirtyManos]

3400 bucks for a 2 bdr in LA?

That gets you a pretty nice place in most areas tbh, that average seems a bit high.

Edit: I'm talking about apartments though.

 

[Dr. Feel Good]

3400 bucks for a 2 bdr in LA?

That gets you a pretty nice place in most areas tbh, that average seems a bit high.

Agreed. If you're going East of West Hollywood you can get some decent places. But good luck with anything like Santa Monica, Venice, Culver City maybe..

 

[Poody]

i live in dtla and I can say i pay around $2700 for a 1050sf loft. part of this is driven by a lot of chinese investors, silicon valley moving here, and the new apple store that was just announced on 8th and broadway.

 

[Dr. Feel Good]

i live in dtla and I can say i pay around $2700 for a 1050sf loft. part of this is driven by a lot of chinese investors, silicon valley moving here, and the new apple store that was just announced on 8th and broadway.

The expansion and upgrades of the metro is going to make Downtown much more attractive as well.

 

[PumpkinSpice]

The price of rent sucks in a lot of those cities but I don't think you necessarily need to budget 30% of income for rent. It makes sense in a city that's functioning normally, but these places have completely warped economies. The cost of groceries is not linearly related to the cost of rent, the price of iPhones is the same everywhere in the USA, etc. You could increase the % of income you pay for rent and leave most other stuff the same, which is surely what most lower income people living in high rent markets are doing.

That said, I feel pretty smug about my choice to live in a comparatively affordable city with no signs of the property market going insane any time soon.