What is the Cost of Living in Los Angeles, CA in 2023?
Like most other Californian cities, Los Angeles is also pricey, but not as much as San Diego and San Francisco. Nonetheless, its four million residents testify that the city has a lot to offer besides a platform to those who want to shine in the movie business! In addition to a flourishing economy, it has fantastic weather, lip-smacking food, a rocking nightlife scene, stunning attractions, and sidewalks dotted with beautiful palm trees!
If you’re seriously considering settling down in LA, know that you’ll end up with expenses 41.1% higher than the national average. In other words, if you spend around $100 in any regular American city to live well, you’ll need to dish out $173 to get by in LA! Going by its offerings, the living standards are likely to rise even further with time. Therefore, you should have a fair idea of the expenses you’ll incur if you move to the city. We have listed the core ones for you.
Here is everything you need to know about the cost of living in Los Angeles:
1. Rental Expenses in LA
Thanks to the global pandemic, rental prices have taken a hit, so it’s easier to rent a house or a room in LA at reasonable rates. However, that’s likely to change once the pandemic subsides. According to Numbeo, should you choose to live in a one-bedroom apartment in LA, you’ll need to pay $2,244. That’s expensive when you compare it with the national average of $1101. Should you be looking to rent an apartment, condo, and house comprising three bedrooms for more space, your monthly rent, on average, will amount to $4435.
Rental prices will vary according to the neighborhood you decide to live in. Among affordable communities, Van Nuys is a name worth mentioning. Some high-end areas comprise Fairfax District, Beverly Grove, and Playa Vista. You can find one-bedroom apartments here, but expect to pay between $3528 and $4118. Other notable communities include Silver Lake, Koreatown, and Little Tokyo. Should you find these neighborhoods desirable, be prepared to pay anywhere between $2324 and $2592, which are a tad more reasonable than those mentioned above.
In the end, remember to follow the 30% rule and spend no more than 30% of your gross monthly salary on rent. That way, you’ll end up saving a bit for your future!
2. House-buying Expenses in LA
Once again, the price you pay for your home will depend on the neighborhood you see yourself living in, so it’s important to make up your mind about it. That is if you’re contemplating buying a house in the city.
Pacific Palisades is a neighborhood lying on the coast of LA, where properties sell for a median price of $3.7 million. Of course, the more you move away from the coast, the more prices fall, so properties sell for $1.3 million in a place like Encino. There are many premier gated communities, but for plenty of folks, such communities are preferable because of the amenities they come with. So, price isn’t an issue for them.
On the other hand, if you’re looking for something reasonable, you could check out a suburban neighborhood like Granada Hills, where the median home price is $906,000. For more low-end options, there’s Chatsworth, where homes sell for $785,000. Finally, you’ll be happy to know that homes in Sylmar sell for $671,000. Property prices generally tend to be lower in the suburbs, so Chatsworth and Sylmar are no exceptions!
Finally, according to the National Association of Realtors report in 2018, a single-family house in the LA metro area has a median sales price of $576,100!
3. Food and Grocery Expenses in LA
Since food is one of the city highlights, residents and visitors alike want to try out the range of local and global cuisines available. In fact, food lovers will have a ball here! At the same time, you’ll need to set aside some money for it so that you don’t end up overspending.
The living wage numbers shared by MIT state that an individual who cooks all their meals at home ends up spending $3792 on food annually. If you’re among those keen on preparing their own meals, buy ingredients from nearby grocery stores. Be sure to spend wisely because the item prices aren’t low. Here are the prices (reported by Numbeo) of some for your benefit:
- A pound of beef - $7
- A dozen eggs - $3.45
- Apples (1 lb) - $1.83
- A gallon of milk - $3.69
- A loaf of bread - $3.14
In the end, you might spend around 14% more than the national average on groceries! If you’re looking for ways to save money, this is one way to do it because frequent eating out is a more expensive option. The best thing to do is strike a delicate balance between cooking your meals and eating out. LA has several independent grocery stores and many farmers’ markets selling healthy food and produce. You’ll also find well-known supermarkets such as Smart, Trader Joe’s, and Whole Foods Market. Trader Joe's and Aldi, in particular, have reasonably-priced items, so you may want to check them out. You could buy in larger quantities without having to spend a bomb!
If you have a limited dining budget, find an affordable restaurant where your food doesn’t include alcohol, appetizers, or dessert, and you won’t have to spend more than $20. But if you select a medium-priced restaurant and decide to have a three-course meal with a friend or family member, be prepared to fork over $80!
Fast food is also an option if you’re tired of eating the same stuff every day. While it might be okay to have them occasionally, regular consumption isn’t wise because they aren’t healthy. You won’t have to spend more than $10 on these items! In a word, McDonald’s, KFC, and a host of other options are available to you.
4. Utility Expenses in LA
As far as utility bills go, the weather in LA doesn’t require you to use the heater much during winter, so you don’t end up paying a lot. The pleasant round-the-year weather in LA is one of the reasons people love the city. But in the summer, LA reaches 120 degrees Fahrenheit in certain parts, so the prolonged use of the air conditioner leads to higher bills. In LA, a basic utility bill covering electricity, water, heating, cooling and garbage totals $145.24. In addition, Internet bills may add another $65.45 to the total utility bill.
Your cable bill will be less than $50 monthly; Telephone bills form a part of utilities, too, so you can expect to pay around $192.66 on average. Should you want a lower phone bill, check with your cable provider for any discounts if you take up multiple services.
5. Travel Expenses in LA
Although LA is perfect for driving, public transit options and ridesharing services also serve residents. Thanks to the LA Metro, public buses operate so residents can travel to any part of the city. Another traveling option is the Los Angeles Metro Rail urban rail system comprising six lines and two subway lines.
Whether you take the bus or the train, you’re going to have to pay $1.75 for a one-way ride. One-day, seven-day, and 30-day passes are also available for $3.50, $12.50, and $50, respectively.
If you don’t see yourself driving a car because of excessive traffic, choose a neighborhood close to your workplace. And if you can afford a bike, buy one and ride it to work. Of course, walking is also a sensible option if the distance from home to work is walkable.
For those who travel to work by car, gas prices also pose a burden. Per GasBuddy’s statistics from May 2019, a gallon of gas costs $4.09 while $2.88 is the national average. So, you’re going to need to have some funds ready for ridesharing services and rental cars, and even travel by buses should the need arise.
To sum up, if you end up living in LA, you’re going to have to fork over $4,900 annually as travel expenses. Expect to pay $8,987 if you have a wife and a child!
6. Healthcare Expenses in LA
If you don’t have your health, how can you give yourself a better life? We believe you know the answer to the question! Let us be honest when we say that healthcare in LA is expensive just as much as the rest of California. At the same time, its medical facilities ensure that you get the best care. Hospitals that feature at the top of the list (across the country) include the Ronald Reagan UCLA Medical Center, Keck Medicine of USC, and the Cedars-Sinai Medical Center.
MIT has calculated from the data gathered from the Bureau of Labor Statistics and the Agency for Healthcare Research that an adult with a full-time job needs to spend $2,545 annually on health expenses. If they have a family comprising three members, the number shoots to $8,150 annually.
Seeking a doctor’s services for any discomfort you’re experiencing requires you to pay $125. If you need the services of a dentist, the fee is $110.78, while an eye examination might need you to dish out $114. Prescription drugs will end up costing you $485. Also, if you have a pet that needs a vet, expect to pay $55 plus any additional fees for tests or shots!
In summary, it’s critical to have health insurance to remain prepared for medical emergencies. If your employer finances your insurance, good for you. If not, be ready to pay around $588 on average monthly or $7,056 annually!
7. Entertainment Expenses in LA
There’s no shortage of things to do or places to explore as far as LA’s concerned. The city also believes that to look good, you have to stay in shape. If you follow this policy too and want to invest in a fitness club membership, be prepared to pay $33.99 monthly monthly. Yoga sessions will cost you $21.33. If this seems pricey (and it is), check out the community gyms for more affordable rates.
Interestingly, one of the best things about the city is its hiking paths and areas that you can experience without paying a penny. Some places include Griffith Park, where you can even take your fur baby if you have one, or visit Venice Beach and check out the lovely boarding walks.
If you’re the pubbing kind, ensure that you don’t spend beyond a specific sum because it can get pretty expensive. You need to fork over $20 to $30 to enter a mid-priced club and pay $10 per shot and $15 for every other drink. If you’re a movie buff, keep $15.25 aside for the ticket and carry extra cash for popcorn and other snacks or drinks if you can afford it.
For roller coasters and other fun rides, head over to Knott’s Berry Farm, a theme park, and pay $54 for a ticket. If you’re lucky, you might even get some discounts. Love nature? Be sure to explore the Los Angeles County Arboretum and Botanic Garden for $15.
8. Income requirements in LA
As stated earlier, it’s essential to follow the 30% rule and spend 30% or less of your gross income on rent. Hypothetically speaking, if the room or house rent is $1500, you need to earn $5000 monthly or 600,000 per annum to afford it.
According to Investopedia, professionals with $42,000 as their yearly income might be able to cover essential expenses but won’t have any money left for an emergency. For a lifestyle with certain comforts, it’s a given that you need to earn more. So, how much more do you need to earn? Inc.com seems to think that $87,260 annually is enough. If you separate your expenses and prioritize them, you should be able to make do with a lot less!
Additionally, the living wage, or the sum of money you need to remain above the poverty level, is crucial when determining living costs in a city. In LA, the living wage is $19.35 for an employed person, as shared by MIT. The disadvantage of the living wage is that it all gets spent on basics and doesn’t leave you with anything for exigencies.
Data by Best Places reveals that a resident’s median household income is $49, 682 while the national average is $53,482, so people earning less than or equal to the same amount might feel the pinch when they start living in LA. Should you be serious about living here, explore the kinds of jobs available and the salary range concerning them. If you have an idea of how much you’re likely to earn, you can decide if it will be enough for you to live in LA.
9. Taxes in LA
LA has among the highest sales tax rates in America at 9.5%. Also, if you’re dreaming of owning a home someday, know that property taxes stand at 1%, so people end up paying around $21,696 annually.
Conclusion
So, do you think you’re ready to call yourself a future resident of Los Angeles? We sure hope so! Home to the movie industry, people tend to assume that your survival in the city depends on loads of money. Yes, you need money to sustain, but not so much that making ends meet becomes impossible. Even with the living standards exceeding the national average, you can still live with ease. At the end of the day, the weather, the food, the green spaces, and the opportunities to run into your favorite actors make it worth your while!
