The Elevated Price Tag  of Living in L.A.

Living in Los Angeles is not cheap if you consider the cost, but between the mansions of Beverly Hills to the Palm Trees that line the street, it is a beautiful place to move to. There are many things you need to know before even considering a move. You need to know what the true cost of living is and understand the high cost are not universal across the state and that there are places that are cheaper (San Jose) as well as more expensive (San Francisco).

Home Prices

The Cost of living in L.A. has increased since 2000, mostly because the local homes appreciated in value by 207.36% giving them one of the strongest housing markets in the country.

The median price for a single-family home, as stated by the 2018 National Association of Realtors, is $576,100. That is in the Los Angeles metro area, though it is better than other parts of the state such as San Francisco which boast homes prices around $952,400 with San Diego up there around $626,000.

Buying a home and taking on a mortgage is a big step in anyone’s life. Do your homework before you make major decisions like buying a home. Researching the area before you move to it is the smart thing to do. You also may want to speak with a financial advisor so you will be in the best position financially when you do find the right home for you.
            Renting in Los Angeles is almost as bad as trying to buy a home. There are more people renting in Los Angeles than owning their own home. 36% of the people living in Los Angeles own their own home compared with 64% renting.

Apartment rents are not cheap in Los Angeles and they are all higher than the national averages for all of them. A studio in Los Angeles costs $1,146, a one-bedroom costs $1,364, a two-bedroom costs $1,752, and a three-bedroom building costs $2,381. Most of the numbers quoted are over $500 higher than the national average. Housing cost is some of the highest costs most people pay in their lifetimes and when they are beyond the reach of most of the average people, it becomes difficult.

Utility Costs

There will always be utility bills in whatever city you move to. The basic utility bill is $146.42 for a 915 square foot apartment. New York City’s utility bills cost $145.55. It is also higher than San Francisco that comes in at $123.4 and they are the most expensive city in the state.  Los Angeles pays less for internet than New York City which pays $62.77 whereas in Los Angeles it will only cost $59.65.

Transportation

Los Angeles has traffic. They also have some of the highest gas prices in the nation with the average gallon being $4.09. The national average is $2.88. The prices are higher than a lot of cities, but not all. It does make some people reconsider using a car in one of the busiest cities in the country. They choose to stick to taking the bus.

            The Los Angeles public transportation systems are not bad with the average fare being $1.75 to ride or a 30 pass that will cost you $100. Reduced rates are available for seniors, disabled adults, and students. This is also cheaper than the New York Subway system by $16.50. It is also better than driving with a lot of traffic and high costs for gas. Though riding the bus is not a good thing for everything.

Food

There is any number of good things to eat in Los Angeles. They have food trucks everywhere and if you like to eat out it will cost you $60 for a three-course meal at a mid-range restaurant. The national average is $50. These prices are based on meals being served at basic establishments around the Los Angeles area.

Cooking at home is no cheaper where a gallon of milk costs $4.53 and a dozen eggs cost $3.28. These are well above the national average of $3.10 and $2.27 for each respectively. These are the prices that you will find at the average Los Angeles grocery store. It makes buying health food difficult if the basics are out of reach of a lot of people.

Healthcare

Healthcare in Los Angeles is high though it can be said that it is not as bad as San Francisco which is 64% above the national average and San Jose which is 82% above the national average. Los Angeles is only 22% above the national average. There are options available to help, but it is hard to stay on top of the bills for them.

Final Thoughts

The average movie ticket in Los Angeles is even expensive with it costing around $15.00 a ticket. The national average is currently $12.00. The clothing is even more expensive with a single pair of jeans costing around $49.13, with men’s business shoes going for $107.20. So for both items, they are running at least 10 dollars above the national average. The state also has one of the highest sales taxes in the state with it being at 9.5%.

Tips

• If you are considering moving to Los Angeles you should do your homework first. Look at your finances and see if you have the capital to keep going in one of the State’s most expensive cities and if there is anything you can do to better your chances of survival. You might consider talking with a financial planner so you can meet these decisions head on and be prepared for anything the city can through at you. It will also give you a place to start financially.

• Los Angeles does have its own local banks and moving some of your funds into them will give you an edge in the community as well as give you some inside information about how the city runs and whether you can get any good deals or information from being connected to it.