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Empty those pockets!
It sucks to be a RENTER in Los Angeles !
Los Angeles Rents have shot up more than any other U.S. city. In order to be able to afford rent on a 2-Bedroom apartment in LA, you have to make $145K a year. LA has taken its spot at the top ranked cities where it sucks to be a renter, unless you bring home a hefty paycheck, then you might as well be purchasing a property with the money you are throwing away.
A new survey from personal finance site Smart Asset used the 30% metric (Where the rule of thumb that says that no more than 30 percent of income should go toward housing, including utilities and rent, and that any more makes rent unaffordable and burdensome). SmartAsset calculated what a household would need to make to meet that requirement, spending 28 percent of their income on rent alone (with 2 percent left over for other for utilities and related expenses).
They looked at the average cost for an available, market-rate, two-bedroom rental, and what they found was that the average rental in that category cost $3,398 a month. With a pricetag like that, the average household would have to bring in $145,629 annually to pay the rent.
We know that hearing that bad news hurts a bit, but unfortunately the pain doesn’t stop there. The market rate rents in Los Angeles are 17.1 percent higher than they were last year and no other cities in the study saw market rents rise by quite that much.
The site compiles data on market rents from listings site MyApartmentMap.com, “which keeps track of fair market rents for apartments nationwide.” To decide the cities their survey would cover, SmartAsset looked at the nation’s 300 largest cities, then narrowed it down to the big cities in the 15 largest metros.
What does this mean for you as a renter? Talk to us about how you may be able to put that money towards a mortgage instead. Doesn’t that sound better than slaving away to pay for a place that will never be yours?
Original Article: http://la.curbed.com/2016/5/17/11692852/los-angeles-rent-affordability
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