Why does Los Angeles, CA keep getting more and more expensive to rent/buy a place to live?

Answer 1

Because L.A. is the coolest place around. And if you want to live here, you better come up with the dough. Otherwise move to San Bernadino.

Answer 2

Because there are many people here who have lots of money. They buy the more expensive homes and that pushes prices up for the housing market overall.

In the rental market landlords see homes prices staying high and figure they can raise the rents and make more profit because it's still cheaper than buying.

If you study these things you will find that the areas surrounding L.A. have NOT risen in price so dramatically. That is because the wealthy people employed in the media industries that very much influence this town do not want to live in the outlying areas---they need to live close in so they can be near work. They can afford a lot and that pushes the whole market up.

Home and condo prices in the under $450,000 range have actually dropped in the past two years because the "poor" people who are seeking to buy those homes can't afford them so sellers have been dropping their prices---in some areas condo prices have dropped as much as 30%.

But it's still expensive to live here. Many families with children have left in the past two years for this reason. They have gone to less expensive areas nearby like Riverside, Las Vegas, and Phoenix.

Answer 3

Because the Bush administration pressured the Fed to maintain an artificially low prime interest rate for the past 6 years, to hide flat economic growth. These historically low interest rates have lead to a nation wide inflationary housing market.

This, combined with what many are finally recognizing as predatory lending practices (interest only loans, exploding ARMS, etc), caused buyers to take an attitude of "who cares how outrageous the price is - in a year it will be worth 20% more than I'm paying today".

Now, the market has gone flat, and instead of record-setting loan numbers, lenders are starting to report record-setting foreclosures.

Answer 4

Toluca Lake, Burbank, Silverlake, Atwater Village, Los Feliz, Studio city, and Glendale. All others are somewhat high priced. Like Beverly Hills, Hollywood,West Hollywood,and Brentwood.

Answer 5

supply and demand. there is a large demand for la housing and little supply. in short la is over crowded. AND NO YOU DONT HAVE TO LEARN SPANISH!!! i wish people who didnt actually live here would quit spreading rumors

Answer 6

Because more and more people want to live her and there is only so much space and housing available.

Answer 7

Because the property is going up and I heard you have to pay to learn spanish now since cali is now about 55% hispanic.

Answer 8

I'm curious as well

Answer 9

Wow! thankyou! I was asking myself the same question yesterday

Answer 10

Every time i submit a question, even if its the easiest one, nobody can offer me a proper informed answer here. wtf happened to people who actually make the effort to answer..