News / City Life

Housing in L.A. is now officially the most unaffordable in the country

Housing in L.A. is now officially the most unaffordable in the country

Los Angeles has just picked up a first-place ranking that we probably really didn’t want. A new study from the UCLA Anderson School of Management puts L.A. at the top of the list of all U.S. cities as the single most unaffordable city for both homebuyers and renters.

The rest of the region didn’t fare much better in the report; three of the six most-unaffordable markets in the country are all in Southern California.

"Unaffordable" doesn’t necessarily mean most expensive, mind you. As Curbed Los Angeles reports, the unaffordability ranking compares home sale and rental prices to the incomes people are taking home in the area. So while some cities might have higher prices, averages wages in those regions might be higher to match. The squeeze across SoCal is high prices and lower incomes, making it a harder stretch for locals to cover rent or buy a house.

Contributing to the cost conundrum is the fact that job creation in Los Angeles, Orange County and elsewhere continues to grow, while housing development stays stagnant. More workers are being attracted to the area, but there aren’t enough affordable housing units to go around, so the price for the stock on the market keeps going up, the study finds.

One possible pressure release comes from luxury apartment rental and condo units. The market was flooded with enough of these that demand seems to be met, if not oversupplied. The researchers predict that might mean a slight dip in prices for that specific category of housing, at least for now. Townhouses, here we come.

 

 

Want more? Sign up here to stay in the know.

 

Advertising
Advertising

Comments

2 comments
Rick A

This is old news, except for the errors that supply and demand is increasing prices and that luxury housing will solve anything.  LA had a 12% glut of new apartments back in 2013 and has continued to build since then so the glut is greater. Corruption, where bribery allows a developer to buy whatever up-zoning he wants, is what forces up the cost of residential housing.  That means residential housing is priced according to its Development Value and not according to its value as Living Space. 


As the cost of living in LA continues to increase and the wages decrease, more people are moving away.  Los Angeles has the third greatest net LOSS in terms of domestic migration.


http://bit.ly/2hY8hGD   January 5, 2017, CityWatch, Scientific Theory of LA’s Decline, by Richard Lee Abrams

b3films .

And most "luxury" apartments I've checked out are garbage and the size of a closet.  Another trick I've seen is they take an old dump and add a few upgrades to warrant adding the "luxury" text under their name.  Just look out your window.  The horizon is filled with overpriced dumps.