You don’t have to tell most renters in Los Angeles that rental prices here are unusually high. That fact becomes painfully apparent every time the first of the month rolls around. Still, it’s satisfying to get some good data confirming that, yes, Angelenos are indeed among the most rent-burdened in the U.S.
A new report from Apartment List analyzed rental prices nationwide from 1960 to 2014, and found that in that time, inflation-adjusted rents soared about 65 percent, while household incomes grew by just 19 percent. And, between 2000 and 2010—when the recession hit—median income dropped 7 percent, while rent prices climbed 12 percent.
Nationwide, nearly half of renters in 2014 spent more than 30 percent of their income on rent; only 24 percent did so in 1960.
These statistics paint a bleak picture, but in Los Angeles the situation is especially dire. Between 1980 and 2014, the city saw one of the largest disparities between income growth and rental increases. In 2014 dollars, an average rental unit cost about $836 in 1980. (imagine!) Since then, rents have spiked 55 percent, while income levels have ticked up just 13 percent.
Other coastal cities, like New York and San Francisco, saw even higher rent hikes, but incomes in those areas swelled significantly more than they did in LA. That puts Los Angeles in the company of Detroit and Indianapolis as one of the places where the fortunes of renters have deteriorated most. In the latter cities, income actually declined by more than 10 percent between 1980 and 2014, while rental prices continued to climb.
- How Have Rents Changed Since 1960? [Apartment List]
- You Have to Make $145k a Year to Afford Rent on a Two-Bedroom in LA [Curbed LA]
- Los Angeles is One of the Worst Cities For Renters [Curbed LA]
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