L.A. Among Most Rent Burdened Markets

Rent cost burden is worsening across the nation, and Los Angeles is among the top cities where renters spend more than 30% on their income. According to a report from Apartment List, Los Angeles ranks as the sixth nation for rent cost burden with 56.9% of renters spending more than 30% on rent.

“Los Angeles is a desirable place to live with a strong and growing economy, but rental options are not abundant at every price point,” Igor Popov, chief economist at Apartment List, tells GlobeSt.com. “As a result, many renters in the market have been bidding up the price of housing to a point where over half of renters are really stretching their budgets to afford their living space.”

Despite being one of the most rent burdened markets, the cost burden in Los Angeles is decreasing. In 2017, 57.8% of renters were considered cost burdened, a slight decrease from the 2018 numbers. “High-income renters are one of the fastest growing segments in the rental market,” says Popov. “Many young families are earning strong salaries but either don’t want to or can’t afford to purchase a home. As a result, these high-earners are flooding into the rental market and padding the stats a bit. Rents are going up, but the pool of renters is also changing in ways that might mask growing affordability concerns.”