Unlocking the Housing Struggle: Why Los Angeles Tops the 'House Poor' List in the U.S.

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The affordability crisis in Los Angeles often centers on renters struggling to make ends meet, but homeowners in the city are not immune to the pressures of rising expenses and stagnant wages.

A recent study by Consumer Affairs reveals that homeowners in Los Angeles rank as some of the most financially strained when it comes to housing expenses. The city ranks fourth among major U.S. cities for being “house poor.”

The term “house poor” refers to individuals or families who allocate a significant portion of their income to housing, leaving little for other necessities.

Consumer Affairs’ analysis highlights that a typical household in Los Angeles brings in approximately $10,855 monthly. However, over $3,500 of this income is dedicated to housing costs, making up about 32.5% of their earnings.

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.

A house under construction is seen in Culver City on Nov. 21, 2020. (Getty Images)

“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.

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Unlocking the Housing Struggle: Why Los Angeles Tops the ‘House Poor’ List in the U.S.

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