Rent burdened households spell major problems for Los Angeles long term
Since 2000, the percentage of households renting in the metro area rose from 49.03 percent to 51.56 percent
July 24, 2019
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- Since 2000, the percentage of households renting in the metro area rose from 49.03 percent to 51.56 percent. This growing trend has been particularly common for Los Angeles County where the divide between rented (54.19 percent) and owned housing (45.81 percent) has become even wider. Now, for both the county and the metro area, renting has become the norm.
- At the same time, rent burdened households, homes that spend over 33 percent on housing, are also becoming more common place. Today, over 57 percent of renter occupied households fall under this category. Even more startling, nearly a third of Los Angeles residents are considered severely rent burdened, meaning they are putting over half of their income toward rent.
- This growing trend of rent burdened households will likely prove problematic for the region long term. Residents are finding it difficult to save or invest their money, which means less stability moving forward. For employers, this will prove challenging too as high cost of living will drive the talent to seek opportunities in other more affordable parts of the country.
- Today, Los Angeles and Orange County are losing 93 and 17 persons per day respectively. In turn, areas like Riverside county are receiving 41 persons per day due in large part to the Inland Empire’s more affordable housing. Without some reprieve from high rents and home prices, Los Angeles is likely to see continued net outflow of residents and a smaller, talented workforce moving forward.
Source: JLL Research, LAEDC, ESRI