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Of the 50 largest U.S. cities, thats behind just San Francisco, San Jose and Oakland.
Thehigh cost of livingcan be attributed to soaring housing prices, transportation expenses and daily living costs.
Despite these challenges, manyresidents find ways to manage their finances and maintain their lifestyles.
Thats one reason its so expensive.
Here are a few others.
High Housing Costs
L.A.s housing cost-of-living score is three times the national average, according to BestPlaces.
Thats almost $1,000 higher than the national average.
These high rent prices force residents into tough decisions.
Studies have found that L.A. tenants are spending too much of their income on rent.
Many of them likely have no other option but to move out of the city.
Given L.A.s high home prices, buying a house is an option many residents cant seriously consider.
RentCafes calculations encompass a variety of costs, but fuel is the most important.
Gas prices in Los Angeles tend to be 30% to 40% higher than the national average.
California Prices
L.A. residents dont just live in an expensive urban area.
They live in an expensive urban area in a state where prices are already higher than average.
Californias living costs are around 30% higher than the U.S. as a whole.
Theaverage single filerpays around 8%.
California also has the ninth-highest combined sales tax rate at 8.66%.
These are extra costs that residents of cities like L.A. have no choice but to pay.
The region is home to plenty of A-listers,sports stars and business icons.
But how does the average person survive?
According to ZipRecruiter, the average L.A. resident earns more than $68,000 per year.
That means a large percentage of the population makes enough to cover the $70,320 inannual living expenses.
Thats also higher than the U.S. annual average salary of $59,384.
That being said, there are plenty of people in the area who have to get by with less.
The minimum wage in California is $16 per hour $20 forfast food workers.
Thats not even enough to cover the average L.A. rent.
These people have to make sacrifices and get creative to afford living in the area.
That often meansgetting roommatesand commuting longer to pay less in rent.
That may not be much to get excited about, but thats the price of living in Los Angeles.
Information is accurate as of June 21, 2024. it’s possible for you to learn more about GOBankingRates processes and standards in oureditorial policy.
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