How expensive is Los Angeles?
Los Angeles is expensive mainly because of housing. Zillow's typical home value in the city was $927,891 in September 2026, about 11.3 times the city's median household income of $81,939 (Census ACS 2020-2024). Zillow's typical rent of $2,772 a month equals about 41% of that median income before tax. Everyday costs such as food and transport are high but closer to other large California cities. Statewide, the median household income is $99,122 and the median home value is $734,700 in the same Census survey, so Los Angeles households earn less than the state median while facing higher home prices.
The MIT Living Wage Calculator (updated February 15, 2026) puts the cost of basic needs for one adult with no children in Los Angeles County at $60,161 a year before tax, and $140,735 for two working adults with two children. Those are bare-minimum budgets with no savings or eating out.
Housing costs in Los Angeles
Buying a home in Los Angeles
At Zillow's typical value of $927,891, a 20% down payment is about $185,600. Financing the rest at 7.24% (Freddie Mac, week of October 29, 2026) costs about $5,060 a month in principal and interest. Add property tax of about $910 a month and the payment is near $5,970 before insurance and any HOA dues. For comparison, the Census puts the median monthly cost for city owners with a mortgage at $3,497, because most of them bought years ago at lower prices and rates. Values differ widely by area: Zillow's neighborhood values run from $467,916 in MacArthur Park to $4,140,242 in Bel Air. See the Los Angeles housing market report for current trends.
Renting in Los Angeles
Zillow's typical observed rent in the city was $2,772 in September 2026, up 0.8% in a year and 14.4% in five years. The Census median gross rent of $1,933 is lower because it includes long-held leases, many of them in rent-stabilized buildings. About 64% of city households rent, according to the same Census survey. If you rent an older unit, ask the landlord whether it is covered by the city's Rent Stabilization Ordinance, which limits yearly increases; confirm the current allowed increase with the Los Angeles Housing Department.
Property tax in Los Angeles
The total 2026-27 rate in tax rate area 67, which covers much of the City of Los Angeles, is 1.185825% of assessed value, according to the Los Angeles County Auditor-Controller. On a $927,891 purchase, that is about $10,920 a year after the $7,000 homeowners' exemption, which saves about $83 a year if you file by February 15. Your exact rate depends on your tax rate area. The full breakdown is in our Los Angeles County property tax guide.
Home insurance in Los Angeles
Insurance is the cost most likely to surprise new buyers. After the January 2025 Palisades Fire, which burned 23,448 acres and destroyed 6,845 structures according to CAL FIRE, many hillside owners struggle to find standard policies. Get quotes before you make an offer, especially in the Santa Monica Mountains, the Hollywood Hills and the foothills of the northeast Valley. Our guides to California homeowners insurance and the FAIR Plan explain the options.
HOA dues and Mello-Roos in Los Angeles
Most of the city was built before Mello-Roos districts existed, so special taxes are less common here than in newer suburbs. Condos and planned communities still carry HOA dues, from a few hundred dollars a month to over $1,000 in full-service towers. Read the latest tax bill for any special assessments and see our Mello-Roos guide.
Everyday costs in Los Angeles
Utilities: LADWP electricity and water
Most city homes get power and water from the Los Angeles Department of Water and Power. LADWP's 2026 standard residential rate (R-1A) is $0.27292 per kWh in Tier 1 and $0.33151 in Tiers 2 and 3 from October to December, excluding taxes. Summer Tier 3 use costs $0.40968 per kWh from July to September, so air conditioning in the Valley raises bills. A time-of-use plan (R-1B) has a $12 monthly service charge. Gas comes from SoCalGas; ask the seller for 12 months of bills.
Groceries and food in Los Angeles
MIT estimates annual food costs in Los Angeles County at $4,463 for one adult and $13,062 for two adults with two children. Restaurant meals are taxed at the city's 10.25% sales tax rate; check the CDTFA rules for which grocery items are exempt.
Getting around Los Angeles
MIT budgets $8,681 a year for transportation for a single adult, mostly the cost of a car. About 60% of city workers drive alone to work, 6.1% take public transit and 19.5% work from home (Census ACS 2020-2024), and the mean commute is 30.7 minutes. A Metro bus or rail ride costs $1.75, with fare capping at $5 a day and $18 a week. Riders 62 and over pay no more than $2.50 a day.
Healthcare costs in Los Angeles
MIT estimates medical costs, including premiums and out-of-pocket spending, at $3,255 a year for one adult and $11,179 for a family of four. Employer coverage changes these numbers a lot; check your plan's premium share and deductible.
Childcare in Los Angeles
Childcare is the largest cost after housing for working parents. MIT budgets $26,634 a year for two children in Los Angeles County. Ask providers for current rates and waitlists, which vary across the city.
Internet in Los Angeles
Home internet providers and speeds vary by street. Enter the address on the FCC National Broadband Map to see which wired and fixed wireless providers serve it before you sign a lease or make an offer.
Taxes in Los Angeles
The sales tax rate in the City of Los Angeles is 10.25%, effective October 1, 2026, according to the California Department of Tax and Fee Administration. When you sell, the city charges a 0.45% transfer tax plus the county's 0.11%, and sales above $5.4 million pay Measure ULA at 4% (5.5% from $10.9 million) for sales closing after June 30, 2026. State income tax applies to all California residents; see our California cost of living guide and the transfer tax guide.
Salary needed to live in Los Angeles
The MIT Living Wage Calculator for Los Angeles County (updated February 15, 2026) gives these hourly wages for a full-time worker to cover basic needs:
| Household | Living wage per hour | Required income before tax |
|---|---|---|
| 1 adult, no children | $28.92 | $60,161 |
| 1 adult, 1 child | $50.23 | $104,483 |
| 2 adults (1 working), no children | $38.12 | $79,296 |
| 2 adults (both working), 2 children | $33.83 each | $140,735 |
Annual figures are MIT's required income before taxes. MIT's budget for one adult includes $22,471 for housing, which is well below Zillow's typical rent of $33,264 a year. To buy a typical home with 20% down and keep housing at about 30% of gross income, a household would need roughly $240,000 a year at September 2026 prices and rates, before insurance.
Los Angeles vs nearby cities
Zillow figures for September 2026. Typical value is the middle tier of all homes; rent is the observed typical rent.
| City | Zillow typical home value | 1-year change | Zillow typical rent |
|---|---|---|---|
| Los Angeles | $927,891 | -0.5% | $2,772 |
| Long Beach | $852,391 | +2.4% | $2,412 |
| Inglewood | $750,676 | +1.8% | $2,487 |
| Santa Clarita | $786,149 | -0.8% | $2,783 |
| Torrance | $1,100,115 | +1.9% | $3,006 |
| Burbank | $1,167,055 | +0.2% | $2,752 |
| Glendale | $1,172,783 | +1.4% | $2,765 |
| Pasadena | $1,186,459 | +0.7% | $3,010 |
| Culver City | $1,274,528 | +2.2% | $3,521 |
| Santa Monica | $1,657,936 | +1.7% | $3,516 |
Los Angeles sits in the middle of its region: cheaper to buy than Burbank, Glendale, Pasadena and the Westside cities, but dearer than Long Beach, Inglewood or Santa Clarita. Our best suburbs of Los Angeles guide compares more cities, and Los Angeles vs San Diego compares the two largest Southern California cities.
Ways to lower your costs in Los Angeles
- Look at the lower-priced ZIPs. Zillow ZIP values in the northeast Valley, South LA and the Harbor area run from about $590,000 to $830,000, against $1.4 million and more on much of the Westside.
- Consider a condo. Redfin's September 2026 county condo median was $644,414, and condos sit on the market for 73 days, so there is room to negotiate. See our Los Angeles condo guide.
- Live near work or transit. Metro's fare caps mean a regular rider never pays more than $18 a week.
- File the homeowners' exemption and check whether you qualify for other exemptions on the county guide.
- Shop for insurance early and price earthquake cover separately.
- Use LADWP's time-of-use plan if you can shift laundry and charging to off-peak hours.
If you are planning a move, our relocating to Los Angeles guide covers the logistics, and living in Los Angeles covers the pros and cons.