You’ll need to make a salary of $136,207 if you’re paying rent — or $150,391 if you own your own home — to live well in L.A. One outlier, though, is transportation — whereas annual transportation costs might have run you $5,400 in 2016, you’ll pay more than three times that in 2019 at $18,290.16. And if you are a vegan, you are going to need a lot more. Los Angeles, California’s cost of living is 43% higher than the national average. Insurance also costs a lot of money. The living wage shown is the hourly rate that an individual in a household must earn to support his or herself and their family. This means that 50% of the Los Angeles population is making more than this, but also 50% is making less. Either way, it sounds like you guys are on the right track. Let's say you wanted to put down 10% so you can get out of PMI sooner - we're still only talking $80K. Within California, the cities of San Francisco, San Jose and Los Angeles … You’ll probably get along fine if you don’t make quite so much, but living comfortably will be a lot more feasible if you reside in one of these more affordable cities. And once you find a home you can afford to pay, Good Movers LA will gladly help you relocate. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window). 5 Towns That Will Literally Pay You to Live There, The Political Spending in Georgia Could Instead Solve These 5 Problems, 25 Ways To Fix Your 401(k) Before It’s Too Late, Here’s What Americans Have Been Buying (and Not Buying) Ahead of the Holiday Season, 15 of Your Favorite Companies That Have Gone Out of Business, 25 Most Outlandish Taxes Since the Boston Tea Party, Struggling Chains That May Not Make It to 2021. The Salary You Need To Live Well in LA Is Staggering. Sadly, when you live in Los Angeles, you need to spare a lot more money on food than you would anywhere else as it is more expensive than the national average. This means that you’ll need somewhere between $5000 and $6000 per month to live in Los Angeles. All Right Reserved. Did this article teach you something new? You are going to be spending around $500 per month on food if you eat regularly. Q: What would my quality of life be in Los Angeles on $150,000 salary? To determine the figures for this study, GOBankingRates utilized the 50/30/20 rule, which assumes that 50% of income should go toward necessities, 30% should go toward discretionary spending and 20% should be saved. This isn’t the first year that the GOBankingRates study has determined you’ll need a six-figure salary to live comfortably in L.A. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Once all the data was found, the annual expenditure amount was calculated by adding together the annual spending for each category. It probably comes as no surprise that New Yorkers should also make well into the six figures to live comfortably in the Big Apple. You are definitely going to need a car if you live in Los Angeles but you also have to bear in mind that gas prices are very high. According to real estate website Zillow, the average cost of an LA home is hovering at $764,528. Driving in LA is a must. We make money easy. And prices vary in each part of the city. Check out the amounts needed to live comfortably from years past: With a median household income of $54,501, it would seem that many who live in L.A. are living well above their means. Los Angeles wasn’t built for walking. But you also have to understand that you are going to have other monthly expenses such as a phone bill, doctor’s appointments, shopping, etc. Save my name, email, and website in this browser for the next time I comment. Methodology: GOBankingRates found the cost of living in America’s 50 biggest cities by analyzing the following factors: (1) Cost of living index for groceries, utilities, transportation and healthcare sourced from Sperling’s Best Places. The 50% income is the annual expenditure, and that amount was used to find the additional income needed for splurges and savings. Don't shell out cash to move — these places will pay you. Required fields are marked *. many city dwellers don’t need to earn six figures to make a living. If you earn $230K a year, there's probably bonuses, tax returns and possibly an ESPP (Employee Stock Purchase Plan) or other stock incentives coming in. These offers do not represent all available deposit, investment, loan or credit products. If you’re planning to move to Los Angeles, you’ll most likely be renting your apartment. Pretty straightforward and easy to do when the government does your job for you Everyone wants to live in LA because of the unique and luxurious lifestyle that it offers. According to the data, just 29 percent of potential homebuyers can afford a property at county’s median price of $485,800. There’s a Metrolink in Southern California but this service is very expensive. All in all, you need to make at least six figures to live comfortably in 13 U.S. cities. Find Out: How Much You Need to Live Comfortably in 50 Major US Cities. How we determined the highest paid jobs in Los Angeles For 2020. Mortgage payments were multiplied by 12 to obtain an annualized amount; (4) Median household income was sourced from the U.S. Census Bureau’s 2017 American Community Survey (this is income prior to being taxed). 3 for the highest required salary for renters. Of course, many city dwellers don’t need to earn six figures to make a living. What salary do you need to live in Los Angeles? © 2020 GOBankingRates. If you finance using FHA with 5% down, you'd only need to save $40K for a $800K home. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). How Much Money You Need to Live Comfortably in the 50 Biggest Cities [GBR] 58.5 Percent of Los Angeles Renters Can't Afford Their Rent [Curbed LA] 57 Percent of People Living in Los Angeles … Some parts of the city are warmer than the others which means that you’ll be using your air conditioning more which leads to higher utility bills. Housing costs alone would make a significant dent in necessary expenses, with a median annual rent payment of $37,656. Organic food is very easy to find in LA but it is also very expensive. If you put all of this together, you need around $4000 per month to live in Los Angeles. Out of the major U.S. cities where you will need to make at least six figures to live comfortably as a renter, six are in California. DID YOU KNOW? Buses in Los Angeles are also not the best. 10. Flight Costs from Los Angeles. You’ll need a staggering six-figure income to live comfortably in Los Angeles: at least $136,207 if you’re paying rent or $150,391 if you own a house. This is because Los Angeles has a few different climates. But the average utility bill is around $130 per month. Your utility bill is going to vary in each part of the city and at different times of the year. It is a very exclusive city and it seems like everything there costs a lot of money. But you also have to understand that you are going to have other monthly expenses such as a phone bill, doctor’s appointments, shopping, etc. Some other contenders were Honolulu ($125,329.30); Washington, D.C. ($122,933.82); Boston ($120,413.32); and Seattle ($115,722.24). Your email address will not be published. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. Living in Los Angeles is notoriously pricey, but you might be surprised by just how much the basic living expenses will run you. Check out the cost of annual necessities by year below: Annual rent has steadily climbed into the high $30,000s.

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