Since early 2024, Los Angeles has maintained its position as the least affordable real estate market in the United States, according to a recent study.
According to RealtyHop’s monthly analysis, which examines 100 major U.S. cities, Los Angeles consistently tops the list of least affordable housing markets. Since January 2024, this city has solidified its place as the most challenging spot to buy a home in the entire country.
Despite the many beautiful and historic homes in Los Angeles, the dream of homeownership remains out of reach for most people. Even with the first-time homebuyer loan programs offered by the California Housing Finance Agency, the situation does not improve much for Californians.
RealtyHop indicates that «California remains unaffordable for the average American. Three of the five most expensive cities are in this state.» In May, the median sale price in Los Angeles rose even higher, reaching $1,100,000.
With a median household income in Los Angeles of $78,671, most middle-class families would have to allocate approximately 99.33% of their income to cover housing costs, which is clearly not feasible.
This situation is even worse compared to other unaffordable real estate markets in the country, where homeowners allocate around 49% of their income to housing expenses. In most major U.S. cities, only 30% of residents’ annual income is used for these expenses.
To reach these conclusions, the RealtyHop Housing Affordability Index analyzes:
- Median household income
- Median home sale price
- Local property taxes
- Mortgage expenses