13 facts about Los Angeles that will make you think twice about whether you can afford to live there
The estimated cost of annual necessities for a family of four is $73,887 — or $6,157 a month.
Even if you're single, annual costs add up to a hefty amount: $34,886 — or $2,907 a month.
Annual necessities include housing, food, transportation, health care, other necessities, and taxes. They do not include savings or discretionary spending.
Source: Economic Policy Institute's 2015 Family Budget Calculator
The median home price is a steep $420,300.
Compare that to the median home price in the US: $212,400.
Source: National Association of Realtors
Meaning a typical monthly mortgage payment would come to $2,061.
That's assuming interest rates for a common 30-year, fixed-rate mortgage.
Source: HSH.com
To afford to buy a median-priced home, you'd need to earn about $88,315 a year.
To put that into perspective, the median household income in the US is $52,250.
Source: HSH.com, via Business Insider
If you're looking to rent, the average rent on a one-bedroom is $2,037. A two-bedroom would be about $3,091.
Compare that to the national average one-bedroom rent at $979, and two-bedroom at $1,207.
Source: MyApartmentMap
In addition to pricey housing, car ownership will add up. The average price for a gallon of gas in Los Angeles is $3.16, compared to a national average of $2.29.
And if you're driving, give yourself plenty of time to account for the infamous LA traffic.
If you can manage without a car, the LA Metro is a more economical option. The base fare for a single ride is $1.75, and a 30-day pass will cost you $100. That's cheaper than New York City and DC, but not much of a steal compared to Boston ($75 a month) and San Francisco ($83).
Sources: GasBuddy, AAA, and SmartAsset
The restaurant scene is a dream for foodies, but expect to pay more than the average American. A 'mid-range' meal for two will set you back about $56 — that's $11 above the national average.
Source: Numbeo
Even with all of the prestige around California wines, a mid-range bottle only costs about $10 in LA — $2 under the national average.
Source: SmartAsset and Numbeo
A trip to the movies averages $13. That's $3 more than the national average.
If you add on popcorn and a soda, you're looking at a $20-plus evening.
Source: SmartAsset
If you enjoy nightlife, get comfortable spending about $85 a night. Going out for a night in LA is pricier than hitting the town in New York City ($82) and San Francisco ($71).
This includes an event ticket, transportation, and food and drink costs in the Los Angeles metro area.
Source: Eventbrite
All in all, for a four-person family to live comfortably, the suggested annual take-home income is $141,408
This accounts for necessities — such as housing, food, childcare, healthcare, and transportation — discretionary spending, and savings in the San Francisco metro area.
Source: FindTheHome via Business Insider
And if you're striving to be in the top 1% of Los Angeles metro-area residents, your household income would have to reach at least $466,895 a year.
For the top 5%: $218,018 a year.
Source: The New York Times
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