Many people have the desire to live in Los Angeles for obvious reasons, such as the ocean, beaches, temperate climate, and more. If you have ever been to LA, then you know how expensive it can be in general. But why are LA apartments so expensive.
LA apartments are so expensive for the most part because there is often a higher demand for them than homes for sale. This is because, as with rental properties, homes for sale are often astronomical.
Knowing whether you can afford an apartment in LA depends on what you do for a living as well as other factors. Keep reading to find the reasons there is a higher demand for rental properties over those listed for sale.
High Demand for Apartments in LA
Due to many factors, there is often a higher demand for apartments and other rental properties than houses that are for sale. While there are still many people who own property in LA, the majority of the population relies on renting.
Los Angeles is currently rated among the top five cities in the United States with the highest rental costs. Although rentals in LA are not quite as expensive as they are in places like San Francisco, they are still higher than most of the nation. Keep in mind that rental costs and home sale prices are what drives the cost of living in a specific area.
This is especially true in places like LA, where housing prices are astronomical, and as a result, other commodities such as fuel, food, and energy must also be higher. As much as some people are moving out of the LA area, others are flocking to the City of Angels to get a semblance of the beach life. As they move in, they are faced with the task of having to find a place to live.
Finding a place to live in a place like Los Angeles can be overwhelming, especially when you are coming from a conservatively smaller town where homes did not cost an arm and a leg. Needless to say, as people are moving in, there is a greater demand for a supply of housing developments to accommodate everyone.
As long as the demand for housing exists, there will always be someone waiting in the wings to sell or rent to those looking.
Home Buying is Too Expensive in LA
Interestingly enough, homes in the LA area range in price from about $400,000 and up. Many of these homes in the lower price range are more modest and may not have all the bells and whistles you may get if you were somewhere else.
Another reason LA residents and those moving into the area are looking for apartments over homes has to do more with astronomical prices than anything else. While apartments are more expensive than in other places, they’re still the most affordable housing option in LA.
Salaries tend to be in a higher range due to the cost of living adjustments. The homes for sale in LA are still not affordable to most. The majority of houses that are purchased in the Los Angeles area are done so by those working either in the film and television industry or in the technology industry.
Since housing costs are so high, individuals often turn to apartments and other less expensive housing types. You should keep in mind, however, that whether you choose to rent or purchase your apartment, you could still be paying a much higher price than you would if you were in another location.
There’s Little to No Available Space to Build in LA
Building construction and landlords also have a direct impact on the price of apartment living in LA.
There’s very little space available to build new buildings in LA. Los Angeles apartments tend to be on more of the expensive side since they are often built from already existing structures. This means that instead of tearing down a specific building, owners will often refurbish it and turn it into apartments.
This typically happens instead of starting from scratch because much of the land that surrounds LA is already spoken for. This means that Los Angeles does not have anywhere that can be expanded to accommodate the many people choosing to move to the LA area.
Since there is a limited amount of space available, it is important to note that developers are always looking for buildings that they can turn into apartments. With the demand for housing at an all-time high, they can benefit from developing new places for people to live.
The bottom line is that most big metropolitan cities like Los Angeles typically have a higher cost of living. This is especially true for those areas that also have a high tourist trade that draws people in to keep the economy going.
Because the LA area is one of the “booming” cities that draw in tourists and those transplants from other parts of the country, there is a high demand for housing that is affordable. The unfortunate side is that houses that are for sale are so expensive that only the elite can afford to purchase them.
Since this is the case, it leaves everyone else left looking for apartments that they can afford to either purchase or rent. Developers and property owners are often aware that the demand is there and, unfortunately, take advantage of the situation by increasing prices to levels that are unheard of in other cities.