While much of Los Angeles‘ affordability crisis tends to be focused on renters struggling to make ends meet, those who own their homes are also feeling the effects of rising costs and stagnant incomes.
In a new study published by Consumer Affairs, analysts found that L.A. homeowners are among the most “house poor” in the nation, landing at No. 4 among major cities.
House poor is a finance term used to describe someone who spends a disproportionate amount of their income on housing costs with little left over for other expenses.
According to the Consumer Affairs analysis, the typical household in Los Angeles earns about $10,855 per month, but spends more than $3,500 of it on housing costs—approximately 32.5% of their income.
L.A.’s monthly housing costs are the highest among cities listed in the top 10 of Consumer Affairs’ rankings, but the city avoids the top spot due to overall higher earning homeowners.
But inflation, as well as high property tax that’s near double the national average due to the nearly $1 million median home value, are quickly outpacing what homeowners are bringing in.
“Year-over-year, housing costs increased by 3.8% from 2023 to 2024, while homeowner incomes fell by 0.1%,” a Consumer Affairs analyst said. “That changes the city’s cost burden from 31.2% to 32.5% in just a year.”
While home values continue to soar and inflation continues to affect everyday spending, home ownership is potentially more out of reach than ever. But even those who are already building equity in the housing market are finding themselves stretched to their limits, especially in households that are already considered lower income.
“No one expects Los Angeles to be affordable, but the reality is that even higher-income households are feeling squeezed,” said Dayna Edens, a spokesperson for Consumer Affairs. “When a third of your income goes straight to housing, there’s not much left for savings, emergencies, or long-term goals. Our report shows a growing gap between what people earn and what it actually costs to sustain homeownership in L.A.”
Los Angeles trails only New York City, New Orleans and Hialeah, Florida in Consumer Affair’s report.
Below is the top 10 list of most “house-poor” cities in the U.S.:
| Rank | City | Households with a mortgage | Median annual household income of homeowners | Median monthly household income of homeowners | Median monthly housing costs | Percent of income spent on housing |
|---|---|---|---|---|---|---|
| 1 | Hialeah, FL | 18,163 | $71,386 | $5,949 | $2,193 | 36.9% |
| 2 | New York, NY | 596,067 | $121,443 | $10,120 | $3,335 | 33% |
| 3 | New Orleans, LA | 47,601 | $85,843 | $7,154 | $2,332 | 32.6% |
| 4 | Los Angeles, CA | 363,238 | $130,265 | $10,855 | $3,523 | 32.5% |
| 5 | Miami, FL | 36,300 | $107,481 | $8,957 | $2,893 | 32.3% |
| 6 | Pembroke Pines, FL | 24,607 | $103,178 | $8,598 | $2,751 | 32% |
| 7 | St. Petersburg, FL | 43,212 | $91,181 | $7,598 | $2,322 | 30.6% |
| 8 | Honolulu, HI | 35,047 | $119,941 | $9,995 | $3,045 | 30.5% |
| 9 | Yonkers, NY | 21,218 | $125,927 | $10,494 | $3,170 | 30.2% |
| 10 | Chula Vista, CA | 36,249 | $127,557 | $10,630 | $3,132 | 29.5% |
On the opposite end of the spectrum, cities in Arizona, North Carolina and other Midwest states fared relatively well with Chandler, Arizona, named the least house-poor city among those analyzed.
Consumer Affairs experts suggested a few tips for avoiding becoming a cost-burdened homeowner, including leaving room in one’s budget for emergencies and other unexpected expenses, factor in unlisted costs like property taxes and home insurance when drafting a housing budget, and stick to the age-old 28% rule, which advises you should not spend more than 28% of your income on housing costs.
For the complete list of Consumer Affairs’ house-poor analysis, as well as information about the study’s methodology and scope, click here.
