Truth matters. Community matters. Your support makes both possible. LAist is one of the few places where news remains independent and free from political and corporate influence. Stand up for truth and for LAist. Make your year-end tax-deductible gift now.
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.
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
You come to LAist because you want independent reporting and trustworthy local information. Our newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our connected community. We are free to tell the full truth, to hold power to account without fear or favor, and to follow facts wherever they lead. Our only loyalty is to our audiences and our mission: to inform, engage, and strengthen our community.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive before year-end will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive before year-end will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Senior Vice President News, Editor in Chief
