With our free press under threat and federal funding for public media gone, your support matters more than ever. Help keep the LAist newsroom strong, become a monthly member or increase your support today.
Your guide to renting in this complicated — and expensive — place.
Only 17% Of LA Households Earn Enough To Buy A Home
A for sale sign is seen near a house in South Pasadena on April 24, 2020.
(
Frederic J. Brown
/
AFP via Getty Images
)
Topline:
It’s no secret that buying a home in the Los Angeles area is expensive. But a new report shows that homeownership is only getting further out of reach for most buyers, with just 17% of L.A. County households earning enough to afford a median-priced home.
The numbers: The California Association of Realtors released its 2022 affordability report on Wednesday. The real estate trade association determined that local households needed to earn at least $192,800 per year in order to afford L.A. County’s 2022 median home price of $849,410. Those figures assumed buyers had enough money on hand for a 20% down payment.
The disparities: According to the report, about 25% of white households and 22% of Asian households in L.A. County could afford a median-priced home. Only 10% of Latino households and 9% of Black households earned enough to qualify.
Support for LAist comes from
Changes over time: Home prices in the L.A. area have declined slightly over the past year, but interest rates have gone up, causing monthly mortgage, tax and insurance payments to soar to around $4,820, according to the report. Because of this increase, the share of L.A. County households that could afford to buy a home declined from about one-in-five in 2021 to one-in-six in 2022.
Why it matters: Demographers have pointed to unaffordable housing as a key driver in L.A. County’s declining population.
Go in depth: Here’s How LA’s Suburban-Style Zoning Contributes To Racial Disparities
At LAist, we believe in journalism without censorship and the right of a free press to speak truth to those in power. Our hard-hitting watchdog reporting on local government, climate, and the ongoing housing and homelessness crisis is trustworthy, independent and freely accessible to everyone thanks to the support of readers like you.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
The rock legend joins LAist for a lookback on his career — and the next chapter of his music. -
Yes, it's controversial, but let me explain. -
What do stairs have to do with California’s housing crisis? More than you might think, says this Culver City councilmember. -
Doctors say administrator directives allow immigration agents to interfere in medical decisions and compromise medical care. -
The Palisades Fire erupted on Jan. 7 and went on to kill 12 people and destroy more than 6,800 homes and buildings. -
People moving to Los Angeles are regularly baffled by the region’s refrigerator-less apartments. They’ll soon be a thing of the past.
Best of LAist