How Much Money Do You Need to Live in Los Angeles?

As the second-largest city in the United States, Los Angeles attracts residents from across the country and around the globe. As the epicenter of the multibillion-dollar entertainment industry, the city is a magnet for aspiring actors, directors and screenwriters. With idyllic weather year-round, beautiful beaches and a diversity of scenery, it is possible, during some months, for an Angeleno to snow ski in the morning and surf in the afternoon.

Los Angeles is a perfect study in how the demand curve works. When demand for something is high, prices rise. There is plenty of demand to live in Los Angeles. As a result, everything including rent, food, gas, and utilities is expensive. When considering a move to LA, the first order of business is understanding how much money it is going to take to pay the bills.

The following information is detailed in averages, but keep in mind Los Angeles is a huge, sprawling city. Prices vary wildly depending on where you plant roots. Rents in Santa Monica are not comparable to rents in South Central LA. By understanding the average cost of rent, utilities, food and transportation in Los Angeles, and then making adjustments based on your unique circumstances, you can narrow down the range of how much money you need to live there.

Average Rent in Los Angeles

As of March 2017, based on figures from Numbeo.com, the average cost for a one-bedroom apartment in the city center sits at approximately $1900 per month. If you are looking to get roommates, a three-bedroom apartment averages slightly over $3,420. The good news is that while these averages may seem scary to a new resident, they are skewed upward by the presence of extravagant luxury rentals in the wealthy areas of town. You can find plenty of Los Angeles rentals for under $1,500 per month if you go outside of the city center, though it is advisable when you find something that seems cheap for the area, to investigate the neighborhood and the apartment to ensure it is somewhere you are willing to live.

Average Home Cost in Los Angeles

If you can afford to buy in Los Angeles, prepare yourself for stiff competition and sky-high prices. According to real estate website Trulia, the average price of a home per square feet in Los Angeles is $554 as of March 2017, and current trends indicate this number will soar this year. Currently, the average cost of an LA home is hovering at $699,000. If you’re considering buying in the LA area, it is beneficial to get pre-approved for a mortgage as this will assist you tremendously when closing a deal with the seller. You can research current mortgages available for a home in LA using a tool like a mortgage calculator.

Average Utilities in Los Angeles

Like many parts of California, the Los Angeles region does not have a monolithic climate. Several micro-climates comprise the area. For example, the San Fernando Valley regularly reaches the triple-digits during the summer and can be quite cold for Southern California during the winter. Malibu, by contrast, rarely exceeds 80 degrees and has only dipped into the 30s a handful of times. Your utility bill can vary greatly based on the specific climate in your neighborhood. Citywide, the average utility bill is $133.50 per month for an 85m2 apartment. This figure fluctuates throughout the year and will vary according to the size of your home, but you can use it as a benchmark.

Average Food Costs in Los Angeles

Food in Los Angeles is significantly more expensive than the national average. A gallon of milk costs $3.79, and a loaf of bread costs $2.50. A dozen large eggs is $3.62. For a pound of boneless, skinless chicken breasts, the cost is $4.54. Even a frugal consumer, to be safe, should build $500 into his monthly budget for food costs in Los Angeles.