Properties in the Los Angeles area are so expensive, buying a home in LA cost as much as buying an entire town.
Good Money reveals that opting to buy a property in LA, rather than renting, comes at ridiculously high prices.
Living in the Los Angeles housing market bubble may give you a lot of opportunities.
However, buying a home and completely settling down in the city might be a far-fetched dream for many.
Buying a Home in LA | Why is Everything So Expensive?
At an average price of $3,500, renting an apartment is no cheap feat in Los Angeles.
But if you’re looking to invest in a home instead of throwing that three grand away on rent, think again.
The average home value of roughly $630,000 in LA County (according to Zillow) doesn’t sound all that bad until you consider the local averages for neighborhoods closer to the heart of LA.
Want to live in the trendy locale of Studio City?
Double that county average.
Better yet, triple that average and move to Beverly Glen.
Renting alone is already a very expensive feat when you plan to reside in Los Angeles.
An average home will cost you more than half a million.
The same amount can allow you to afford a property elsewhere, like properties in Connecticut.
Buying a home in LA is probably impossible for many.
Buying a Home in LA | Everything You Need to Know
Good Money reveals that an average home in LA County will cost you $630,000.
As you get closer to the city, the cost of properties does not simply increase, they multiply.
Living in Studio City will cost you more than a million dollars.
Beverly Glen and Bel Air areas will require you to have at least 3 million dollars.
The Los Angeles area is considered as the most expensive location when it comes to housing markets in the United States.
On average, the monthly rent for an apartment is around $3,500 and goes up as you locate yourself closer to the heart of the city.
Los Angeles also happens to be the most desirable neighborhood among all the cities in the United States.
It offers quality options for dining, shopping, and establishments that can keep you entertained the whole year round.
Safer streets, excellent amenities, and good schools are also located around the area.
— Decorator App (@decoratorapp) June 13, 2017
Buying a home in LA is practically unattainable especially for those belonging to the middle class and below.
Why? Besides the fact that the American income is not growing aligned with their daily expenses, the housing crisis is pushing people to settle on renting.
Does it mean there is no affordable housing in L.A?
Some places like Highland Park has relatively cheaper properties.
However, you will still need at least a million dollars to afford an average sized home.
Although several housing developments are on the rise, the prices of units are far from being described as affordable.
Future developments will also increase in value, Good Money shares, making it impossible for the average Joe to afford one.
Buying a Home in LA is a Dream
Buying a home in LA is not impossible, but is a big dream for any average Joe.
If you would explore other cities, like ones in Connecticut, you will be surprised with how much your money can afford.
However, if you dream of living in the heart of California, renting would be the most affordable option for you.
— Curbed LA (@CurbedLA) April 7, 2017
CBS Los Angeles reveals regulations on short-term rentals via this video:
Currently renting a place in LA? Share the advantages and disadvantages of renting in the City of Angels in our comment section below.
Are you financially ready to buy a home? This article on 5 Things You Need to Know About the Home Buying Process might help.