While much of Los Angeles’ affordability crisis tends to focus on renters struggling to make ends meet, those who own their homes are also feeling the effects of rising costs and stagnant incomes.
In a new study published Consumer affairsanalysts found that Los Angeles homeowners are among the nation’s “poorest” residents, ranking fourth among major cities.
House poor is a financial term used to describe a person who spends a disproportionate amount of their income on housing costs while leaving little for other expenses.
According to a Consumer Affairs analysis, the typical Los Angeles family earns about $10,855 per month, but spends more than $3,500 of that on housing costs — roughly 32.5% of their income.
Los Angeles’ monthly housing costs are the highest among cities in the top 10 in Consumer Affairs’ rankings, but the city avoids the top spot due to generally higher-income homeowners.
But inflation, as well as a high property tax that’s nearly double the national average due to the median home value nearing $1 million, is quickly outpacing what homeowners bring in.
“On an annual basis, housing costs rose 3.8% from 2023 to 2024, while homeowner income fell 0.1%,” the consumer analyst said. “This changes the cost burden on the city from 31.2% to 32.5% in just one year.”
While home values continue to rise and inflation continues to impact everyday spending, home ownership is likely more elusive than ever. But even those who are already building equity in the housing market are finding themselves stretched to their limits, especially in households already considered lower-income.
“No one expects Los Angeles to be affordable, but the reality is that even high-income families are feeling the squeeze,” said Dina Edens, a consumer affairs spokeswoman. “When a third of your income goes directly to housing, there’s not much left over for savings, emergencies or long-term goals. Our report shows a growing gap between what people earn and the actual cost of maintaining homeownership in Los Angeles.”
Los Angeles trails only New York City, New Orleans and Hialeah, Florida, in the Consumer Affairs report.
Here is a top ten list of the most “house poor” cities in the United States:
| Rank | city | Households with a mortgage | Average annual household income of homeowners | Average monthly household income of homeowners | Average monthly housing costs | The percentage of income spent on housing |
|---|---|---|---|---|---|---|
| 1 | Hialeah, Florida | 18,163 | $71,386 | $5,949 | $2,193 | 36.9% |
| 2 | New York, New York | 596,067 | $121,443 | $10,120 | $3,335 | 33% |
| 3 | New Orleans, LA | 47,601 | $85,843 | $7,154 | $2,332 | 32.6% |
| 4 | Los Angeles, California | 363,238 | $130,265 | $10,855 | $3,523 | 32.5% |
| 5 | Miami, Florida | 36,300 | $107,481 | $8,957 | $2893 | 32.3% |
| 6 | Pembroke Pines, Florida | 24,607 | $103,178 | $8,598 | $2,751 | 32% |
| 7 | St. Petersburg, Florida | 43,212 | $91,181 | $7,598 | $2,322 | 30.6% |
| 8 | Honolulu, hello | 35,047 | $119,941 | $9,995 | $3,045 | 30.5% |
| 9 | Yonkers, New York | 21,218 | $125,927 | $10,494 | $3170 | 30.2% |
| 10 | Chula Vista, California | 36,249 | $127,557 | $10,630 | $3,132 | 29.5% |
On the other end of the spectrum, cities in Arizona, North Carolina and other Midwestern states performed relatively well, with Chandler, Arizona, earning the title of least housing poor among those analyzed.
Consumer experts have suggested some tips to avoid becoming a cost-burdened homeowner, including leaving room in your budget for emergencies and other unexpected expenses, factoring in unlisted costs like property taxes and homeowner’s insurance when formulating a housing budget, and adhering to the old 28% rule, which advises spending no more than 28% of your income on housing costs.
For a complete list of analyzes of the household poor conducted by Consumer Affairs, as well as information about the study’s methodology and scope, visit Click here.