F
72%
Overall NAT. AVG.
16%
Goods & Services NAT. AVG.
202%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Los Angeles California National
Cost of living172140100
Goods & Services116111100
Groceries112112100
Health care108109100
Housing302196100
Transportation124126100
Utilities112127100

An Overview of Cost of Living in Los Angeles, CA

Are you thinking about relocating, but curious about the potential cost of living in Los Angeles? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Los Angeles stands at 172, making it 72% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

If you prioritize affordability when seeking a new place to live, Los Angeles may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Los Angeles falls into this category, which may not align with your preferences for a budget-friendly living environment.

Housing costs make up a big chunk of the cost of living in Los Angeles, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 202.3% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

The things you purchase regularly, like clothes, haircuts, movie tickets and gym memberships, can make a big dent in your budget and make up 33% of the cost of living index. Unfortunately in Los Angeles, these items will cost you 16.2% more than what's considered the norm, making it a more expensive place to call home.

The substantial and relentless rise in grocery prices definitely warrants some attention. Over the past two years, grocery expenses have escalated by more than 10%. Having said that, the situation in Los Angeles is even less favorable, with grocery prices here being 12.2% higher than the national average.

What Do Locals Say About the Cost of Living in Los Angeles?

The real experts on a city are its residents. That's why we reached out to 67 locals to get their views on the cost of living in Los Angeles. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 18% found it budget-friendly with decreasing prices, while 82% said it's simply not affordable as prices have continued to rise.

Is Los Angeles Affordable?

Is Los Angeles an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Los Angeles, the median home price is 263.1% higher than what most folks pay across the country, and monthly rent prices are 60.5% higher than the usual rates. Income levels in Los Angeles come in at $65,290, which is 18% higher than the national average.

What Factors can Influence the Cost of Living in Los Angeles?

Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Los Angeles, the baseline sales tax rate begins at 7.25%, and income tax rates start at 1%.

Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Los Angeles, the groceries index is 12.2% higher than the national average.

Utilities: Much like any other costs, utility expenses can exhibit considerable variations, influenced by factors such as climate, available energy sources, geographic location and state regulations. The costs associated with electricity, water, heating, and waste disposal can vary significantly depending on the city or state in question. In Los Angeles, the utilities index stands at 12.4% higher than the national average.

Where is the Data From?

The Los Angeles cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Los Angeles is 23% higher than the California average
  • The cost of living in Los Angeles is 72% higher than the national average
  • Los Angeles housing is 202% higher than the national average
  • California general sales tax is 42% higher than the national average
  • California state income tax is 56% lower than the national average

Most Affordable Places to Live in and Around Los Angeles

See all the best places to live around Los Angeles

Compare Los Angeles, CA Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$106,722$8,894$2,490$3,202
      Renters$49,568$4,131$1,157$1,487
      To approximate the cost of living and the housing affordability in Los Angeles, CA, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Los Angeles have a median income of $106,722. Therefore, the amount that a consumer should spend on housing costs should be no more than $2,490 per month to avoid calamity and poverty. The renters in the city have an income of about $49,568, which would make their monthly maximum allowable rental costs $1,157.

      California Sales Tax

      State General Sales Tax With Max Surtax
      California 7.25% 10.5%

      California Income Tax

      State Income Tax (Low) Income Tax (High)
      California 1% 12.3%

      Goods & Services

      Item Los Angeles National avg. Difference
      Haircut $24.67$24.261.7%
      Beauty Salon $49.33$45.568.3%
      Toothpaste $3.76$3.701.5%
      Shampoo $1.41$1.289.8%
      Movie $13.46$12.1311.0%
      Bowling $19.07$18.006.0%

      Groceries

      Item Los Angeles National avg. Difference
      Ground Beef $6.26$5.847.2%
      Fried Chicken $2.08$1.5732.2%
      Milk $4.76$4.671.9%
      Potatoes $4.94$4.930.2%
      Pizza $16.13$12.0933.5%
      Beer $9.60$10.417.8%

      Health Care

      Item Los Angeles National avg. Difference
      Optometrist $129.09$125.682.7%
      Doctor $119.86$135.7811.7%
      Dentist $108.07$113.294.6%
      Ibuprofen $10.36$10.652.7%
      Lipitor $505.41$468.607.9%

      Housing

      Item Los Angeles National avg. Difference
      Home Price $670,700.00$184,700.00263.1%
      Avg. Mortgage Payment $2,799.02$2,346.6919.3%
      Apartment Rent $1,523.00$949.0060.5%

      Transportation

      Item Los Angeles National avg. Difference
      Gasoline $4.47$3.4629.3%
      Tire Balancing $58.33$59.922.6%

      Utilities

      Item Los Angeles National avg. Difference
      All Electricity $326.49$193.9968.3%
      Phone $182.78$192.254.9%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Westside, CA21311615.6%
      Vernon, CA24811717.0%
      Willowbrook, CA24,40113333.3%
      Compton, CA95,80413636.2%
      Florence-Graham, CA64,78713736.5%
      Los Angeles, CA3,973,27817271.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Toronto, ON3,013,752n/a 
      Chicago, IL2,699,34711414.1%
      Houston, TX2,313,2381010.8%
      Montréal, QC1,811,008n/a 
      Phoenix, AZ1,658,4221066.4%
      Los Angeles, CA3,973,27817271.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.