The rising cost of living in the world’s largest cities is hardly a surprise anymore. From groceries to rent, everyday expenses seem to keep climbing year after year. But a new study highlights the housing situation in Los Angeles.
According to the latest report from the payment platform Remitly, Los Angeles ranks as the second least affordable city in the world to buy a home, with average salaries covering only a small portion of housing costs. The city sits just behind San José, which takes the top spot in the ranking.
The world’s second most expensive city
Known for its glitz, glamour, and celebrity residents, L.A. is one of the toughest places on the planet for home buyers. According to the study, even the more modest properties carry million-dollar price tags, putting homeownership far out of reach.
Despite a strong local economy fueled by entertainment and tech, couples earning the city’s average salary ($60,656) could afford only about 56% of a typical home. For someone living alone, that drops to just 28.2% of the average property.
By comparison, in New York, where the average salary is higher ($68,733), a single buyer could cover about 37% of a home, which makes L.A. roughly 31% less affordable.
Other cities mentioned in the top ten most expensive cities include:
- San Jose, California, USA
- Los Angeles, California, USA
- Long Beach, California, USA
- San Diego, California, USA
- Vancouver, Canada
- Paris, France
- Porto, Portugal
- New York City, New York, USA
- Miami, Florida, USA
- San Francisco, California, USA
The most affordable cities in the U.S.
But not everything is bad news. Inland areas in particular offer a more attainable path to homeownership. In the analysis, cities such as Memphis, Baltimore, and Oklahoma City top the list as the most affordable in the country.
But if moving away from the Golden State is not in your plans, there are cities in California that offer more reasonable prices for buying or renting. Many areas combine a high standard of living, strong safety ratings, and vibrant communities.
Local governments are also taking steps to ease housing pressures, from rent freezes to limits on annual rent increases.