Did you just move to Los Angeles, and you’ve been trying to settle down to an apartment, but they all seem expensive? Hence the question, “Why is rent in Los Angeles so expensive?”
Perhaps you are still trying to count the cost of moving to Los Angeles, and you’re finding out that rent in Los Angeles is high.
In this blog post, I’ll discuss why the rent in Los Angeles is high, and how you can help yourself get something cheaper.
Why is Rent in Los Angeles so Expensive?
Here are salient reasons why rent in Los Angeles is expensive:
1. High Property Tax Rates
High property taxes can have a significant impact on the cost of rent in a given area. When property taxes are high, landlords may need to increase rent prices to cover their expenses, including the property taxes. In some cases, landlords may pass on the full cost of the property taxes to their tenants in the form of higher rent prices.
The effect of high property taxes on rent prices can be particularly pronounced in areas with a limited supply of rental properties. In such areas, landlords may be able to charge higher rents because demand for rental units outstrips supply. This can make it difficult for renters to find affordable housing in these areas, especially if they have limited incomes.
In Los Angeles, homeowners are said to pay $5,073 average rent on their properties. So, you can imagine how much effect that has on the cost of rent.
2. High Demands
Los Angeles is known for its vibrant culture, beautiful weather, and opportunities for entertainment, education, and employment. As a result, it is not surprising that many people are moving to the city, and there is a high demand for rental properties.
One factor driving the high demand for rental properties in Los Angeles is population growth. The growth of population in LA has put pressure on the existing supply of rental properties, which has driven up rent prices.
In addition to population growth, Los Angeles is also a major hub for various industries, including entertainment, technology, and healthcare. These industries attract a significant number of young professionals, who often prefer to rent rather than buy homes. The high demand from these professionals has also contributed to the tight rental market in Los Angeles.
3. Lack of New Constructions
The low availability of houses in Los Angeles, coupled with a lack of new construction, is a significant driver of high rent costs in the city.
Over the past few decades, Los Angeles has experienced a shortage of affordable housing, which has resulted in a highly competitive rental market and steadily rising rent prices.
One of the primary reasons for the low availability of houses in Los Angeles is the limited space for new construction. Los Angeles is bounded by mountains to the north and east, the Pacific Ocean to the west, and neighboring cities to the south, which limits the available land for new construction.
High cost of construction is another thing to consider. Land, labor, and materials costs in the city are among the highest in the country, which makes it difficult for developers to build new housing units that are affordable to middle- and low-income renters.
As a result, many developers have focused on building high-end luxury housing, which does little to alleviate the housing shortage and can drive up overall rental costs.
4. Cost of Living
The high cost of living in Los Angeles is a primary reason for the high rent prices in the city. According to recent data, the cost of living in Los Angeles is approximately 10% higher than the US average.
This means that the basic necessities of life, including housing, food, healthcare, and transportation, are more expensive in Los Angeles than in many other parts of the country.
How to Get Cheaper Rent in Los Angeles (LA)?
Here are ways you can subsidize how much you spend on your rent in Los Angeles:
1. Consider renting in the outskirt of LA if possible
While I’m not suggesting that you leave the bustling metropolis of Los Angeles altogether, you might want to consider looking for housing on the city’s outskirts. It’s no secret that rent prices in the heart of the city can be astronomically high, but by branching out a little, you might be able to save yourself some serious cash.
This is especially true if your job isn’t located in the heart of Los Angeles or if you’re currently on the job hunt. With many companies adopting remote work policies, there’s no reason not to explore your options further afield.
However, it’s important to weigh up the costs of living on the outskirts. Transportation, for example, can add up quickly, so it’s worth considering if the savings you make on rent will be offset by these additional expenses. That being said, if you do find a place that works for you, pays you well, and allows you to live comfortably, then go for it! After all, isn’t that what we’re all looking for?
2. Consider sharing room with someone
You can cut down on your expenses by sharing accommodation with someone else! This is a great option for students, who can often find like-minded individuals on campus forums or university groups who are also looking for a roommate.
But even if you’re not a student, there are still ways to find a roommate to share the costs with. You could start by asking around through friends and family, or even put up an online advertisement for a roommate. However, this can be a bit of a slow process.
If you’re looking for a quicker solution, there are plenty of Facebook groups out there where you can connect with people who are also looking for a roommate. The only downside is that you might not have as much in common with your new flatmate, but it’s a small price to pay for the amount of money you’ll be saving on rent.
So, if you’re ready to cut down on your rent expenses and start living a more affordable life in Los Angeles, it’s time to start looking for a roommate! You might just find that sharing accommodation with someone else is the perfect solution to your housing woes.
There are many reasons why rent is expensive in Los Angeles. I hope you got them, and found a way around the high rent.