| Index | Los Angeles | California | National |
| Cost of living | 181 | 141 | 100 |
| Groceries | 119 | 111 | 100 |
| Health care | 125 | 116 | 100 |
| Housing | 307 | 197 | 100 |
| Transportation | 130 | 118 | 100 |
| Utilities | 130 | 119 | 100 |
| Lifestyle & Entertainment | 134 | 120 | 100 |
| Household Items | 119 | 111 | 100 |
| Education & Childcare | 142 | 127 | 100 |
Getting a feel for the cost of living in Los Angeles is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Los Angeles is 181, which is 81% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.
If affordability is among your top priorities when searching for a new place to live, this area may not be the ideal fit, as the cost of living in Los Angeles is among the most expensive in the United States. Just a minority 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 goal of finding a budget-friendly living environment.
Housing costs significantly influence the Los Angeles cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 206.7%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.
Household expenses account for 8% of the cost of living index and include the products people rely on every week, from toiletries and detergent to clothing and kitchen essentials. In Los Angeles, household essentials are 18.5% more expensive than the U.S. average, which can leave less room in your monthly budget.
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 18.8% higher than the national average.
The real experts on a city are its residents. That's why we reached out to 70 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. 21% found it budget-friendly with decreasing prices, while 79% said it's simply not affordable as prices have continued to rise.
Wondering if Los Angeles is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Los Angeles, for example, the median home price is 269.7% higher than what folks pay nationally, and monthly rent is 59.7% higher than the usual rates. Plus, income levels matter too, with Los Angeles boasting a median household income of $96,348, which is 18.5% higher than the national average.
Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.
Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In Los Angeles, healthcare costs are 25% higher than the national average.
Transportation: In cities with limited or no public transportation, residents may find it necessary to own and maintain vehicles, thereby elevating the cost of living. Monthly expenditures include fuel, insurance, routine maintenance and potential lease or financing commitments. In Los Angeles, the transportation index stands at 30.4% higher than the national average.
The cost of living estimates displayed for Los Angeles are modeled using a U.S. average baseline of 100, helping provide a useful comparison of local living expenses. Housing calculations include U.S. Census home price and rental data, while all other values are AI-assisted estimates based on regional cost patterns, climate, transportation, and everyday spending expectations. These values are intended for directional comparisons across cities.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $162,124 | $13,510 | $3,783 | $4,864 |
| Renters | $73,494 | $6,125 | $1,715 | $2,205 |
| State | General Sales Tax | With Max Surtax |
| California | 7.25% | 10.5% |
| State | Income Tax (Low) | Income Tax (High) |
| California | 1% | 13.3% |
| City | Population | Cost of Living Index | National Avg. |
| Westside, CA | 218 | 124 | 23.9% |
| Vernon, CA | 254 | 117 | 16.8% |
| Willowbrook, CA | 25,347 | 136 | 36.0% |
| East Rancho Dominguez, CA | 15,765 | 136 | 36.3% |
| Florence-Graham, CA | 66,603 | 138 | 38.2% |
| Los Angeles, CA | 4,130,831 | 181 | 81.2% |
| City | Population | Cost of Living Index | National Avg. |
| Toronto, ON | 3,013,752 | n/a | |
| Chicago, IL | 2,804,582 | 114 | 14.0% |
| Houston, TX | 2,385,298 | 103 | 2.8% |
| Montréal, QC | 1,811,008 | n/a | |
| Phoenix, AZ | 1,698,457 | 113 | 12.9% |
| Los Angeles, CA | 4,130,831 | 181 | 81.2% |
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