L.A. is the most unaffordable city in the United States for both renters and buyers, according to a new report from the UCLA Anderson School of Management.
While prices of housing are more expensive in other cities like New York, Los Angeles is pricier as measured by the ratio of the median home price to median household income. Of the seven costliest U.S. cities for housing, six are in California, the report shows.
In L.A., the median household income — about $56,000 — is low enough that more residents will continue to struggle to make rent or mortgage payments. In the past year, rents have risen at about a 4 percent rate.
“Even given its stronger economic recovery, California still has relatively limited housing supply because of its stringent regulations,” UCLA economist William Yu said in in the forecast. “That is largely why we have less affordable housing markets here.”
The report predicts that home prices will continue to grow for the next few years, as L.A.’s population growth continues to outpace new housing supply.
Housing units from new construction increased by only 0.47 percent, or by 16,600 new units, in L.A. County in 2016. That’s compared to a 0.68 percent average nationwide increase, according to census data. — Cathaleen Chen