Are you thinking about moving to Los Angeles? Then you probably already know that this is one of the most expensive places, not only in the States but in the whole world. The cost of living in Los Angeles is high enough to make people’s heads spin, but that doesn’t mean that it’s not manageable. After all, so many people call this place their home, and they can confirm that living in Los Angeles is not as heavy on their pockets when you take into consideration their average salaries.
Is It Expensive to Live in Los Angeles, California?
The truth is that there is no short answer to this question. Sure, the prices are much higher when compared to other cities (we’ll get to that in a bit), but so is the average income. Additionally, the expenses of cross-country moving can vary widely depending on factors like distance, long-distance moving services required, and whether you opt for professional long-distance movers and a car shipping company to assist with transporting your belongings.
Relocating to another state, especially to a high-cost area, requires careful financial planning, as both the cost of the move and the living expenses need to be factored in. In other words, the livability of any place, particularly when moving cross-country, is a highly subjective matter. So let’s take a look at some actual numbers and data, and we’ll let you decide if this is something your budget could handle.
Fun Facts About the City of Angels
Los Angeles, often called the “City of Angels,” is not just known for its glitz and glamour but also for its impressive statistics.
As the second-largest city in the United States, LA boasts a population of about 4 million residents, contributing to a metropolitan area with over 18 million people. The city is recognized for its cultural diversity, with more than 140 languages spoken, making it one of the most linguistically varied places in the world.
Los Angeles is a hub for entertainment, home to the iconic Hollywood sign and the entertainment industry, which generates billions in revenue annually. Interestingly, LA’s weather is another major draw – it enjoys a Mediterranean climate, with an average of 284 sunny days per year.
The Average Cost of Living in Los Angeles Per Year
So, you’ve decided that relocating to LA and hiring an auto transport company such as Flat Price Auto Transport and Moving is in your near future. Well, according to Numbeo, an online source of data about prices all over the world, an average four-person family in 2020 in LA spent a little over $3,600 in a month (over $43k yearly), not counting rent. However, if you’re moving to Los Angeles alone, LA’s average monthly cost of living for one is around $3,400. These numbers include necessities such as:
- The most commonly bought groceries,
- Public transportation passes for all family members,
- Gym or other sports memberships,
- Occasional eating out in mid-range restaurants,
- An occasional night out,
- New clothes and shoes in moderate amounts,
- The cost of housing.
Depending on your lifestyle and preferences, these expenses will vary. To be able to estimate precisely what you will be spending, take a closer look at the expenses in different categories, such as housing, utilities, groceries, and so on.
Housing Prices and Utilities in the City of Angels
If you’re planning on renting your new place, several factors will impact the amount of money you’ll need to set aside for rent. One of them is the size of the place you’re getting. As of 2024, the average monthly rent for a studio apartment is around $1,750, while a four-bedroom apartment will be closer to $4,500.
These prices will vary greatly depending on the part of LA you choose to settle down in. For example, if you pick one of the best places to live in Los Angeles for singles, Ocean Park, or any of the high-end suburbs of Los Angeles, your rent will be around $2,200 to $3,500. By contrast, a not-so-desirable area, such as Compton, may cost about $1,300.
If you would rather buy a home, you should set aside between $600 and $1,000 per square foot depending on the area. As for utilities, your basic monthly bills for a 900sqft apartment will likely be around $150. As of 2024, the average price for homes near the beach in Oxnard, CA, has significantly increased. Depending on location and property size, prices range from $610,000 for smaller homes to over $4 million for luxury beachfront properties. More standard-sized homes, such as those with three bedrooms, typically sell for around $700,000-$850,000(according to Redfin).
Transportation Options and Costs
Driving in LA can be quite a stressful experience, especially if you’re moving from a small town to a big city and aren’t used to all that traffic. Luckily, the city has quite a comprehensive public transit network. LACMTA (Los Angeles County Metropolitan Transportation Authority), referred to by locals as simply Metro or MTA, is the foremost local public transportation authority that operates buses, light rail, and subway routes. The monthly pass for LACMTA is $58 for standard adult fares. For those in the low-income bracket, the discounted rate is $26 through the Low-Income Fare is Easy (LIFE) program.
If you would rather avoid public transit, a gallon of gas goes for $5.80. Although LA is not exactly known for its walkability, more and more people are starting to opt for walking to and from their jobs. There is also a well-developed network of bicycle lanes if you prefer biking.
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Read moreGroceries and Dining Out
In 2024, grocery prices in Los Angeles remain relatively close to national averages, though they’ve seen some increases. For example, a dozen eggs now average around $3.50 to $4.00, while white rice costs roughly $2.00 per pound. Fresh produce such as apples costs about $2.50 per pound, and potatoes can be found for around $1.00 to $1.50 per pound.
If you’re dining out, expect fast food meals like McDonald’s to be slightly higher, often around $10 or more. For a sit-down meal, a three-course dinner at a mid-range restaurant averages $35 to $40 per person, reflecting the general price increase across food services in 2023 and 2024.
Entertainment in the Capital of Entertainment
The City of Angels is known worldwide for the best entertainment and nightlife. It would be a shame not to seize the opportunity and experience them first-hand. If you like going to the movies, tickets are usually priced at around $15. However, for special venues like rooftop cinemas, the tickets may cost between $18.50 and $26, depending on the day and seating options.
As for nightlife, you’ll need to set aside much more than that. The club entrance fees at mid-range venues are generally $20 to $30, with drink prices still on the higher side. Shots usually go for about $10 each, and cocktails or other beverages often cost around $15.
What Salary Do You Need to Live in Los Angeles
As we have already said, the high prices of, well, everything in LA are balanced out by high salaries. According to the Average Salary Survey, the average yearly salary in Los Angeles is around $85,300, depending on the occupation. Software engineers in the City of Angels earn about $130,200 per year, reflecting the high demand in the tech industry. Meanwhile, a grocery store cashier earns significantly less, with an average salary of approximately $45,400 annually.
Calculate How Much Money You’ll Need to Live in Los Angeles, California
As we have previously said, your monthly expenses will highly depend on your choices and your lifestyle. If you have a job offer waiting for you, there is a simple way to calculate if the salary they’re offering is enough for you. Find an apartment you’re interested in and compare the rent to your income. If you’re moving with a spouse or a family, compare it to your joint incomes. It shouldn’t be over a third of your monthly earnings. If it is, either find a cheaper place or keep looking for a better job offer.
The Biggest Employers in LA
It’s always smart to get a job before you move, regardless of where you’re going. If you’re still in the process of looking for one, you’ll probably know who the biggest and best employers in the area are. Every business, small or large, is bound to prosper here, and some of the most prominent ones are:
- LA County,
- LA Unified School District,
- University of California,
- State of California,
- Kaiser Permanente,
- University of Southern California,
- Northrop Grumman,
- Providence Health and Services,
- Target,
- LA Community College District.
If you want to start your own business here, you’ll likely need considerable starting capital, but with persistence and hard work, this will be fertile ground for your business to prosper.
How LA Compares to Other Cities
Another good way to get a better feel for how much it actually costs to live in this city is by comparing it to your current hometown or any other places you’ve lived before. Here, we decided to compare LA to some of the most populated cities in the States.
Comparing Everyday Expenses in LA to Other Major US Cities
Cost of Living in Los Angeles vs San Francisco
San Francisco is known as one of the most expensive places in the States, and for a good reason. Overall, it is about 25-30% more expensive than LA. This includes higher housing costs, with rent prices about 26% higher than in LA. For example, the median price of a home in San Francisco is around $1.32 million, compared to $920,000 in LA. Rent for a one-bedroom apartment averages about $3,284 in San Francisco, while it’s $2,616 in LA.
However, while San Francisco has higher living costs, its purchasing power is lower than Los Angeles by around 5.4%, making the latter slightly more affordable for residents when it comes to their overall income and expenses.
Cost of Living in Seattle vs Los Angeles, California
If you’re moving from Seattle, Washington, you’ll be happy to learn that your expenses will mostly stay the same, with a few key differences. The most significant change is housing—Los Angeles is about 4% more expensive in this category, with median home prices around $912,500 compared to Seattle’s $823,900.
In terms of rent, LA averages higher as well. However, Seattle’s utilities are more affordable, while LA residents tend to spend more on transportation. For groceries, you’ll actually save a bit in LA, as they tend to be slightly cheaper compared to Seattle.
Cost of Living in Los Angeles vs New York City
New York is notorious for its sky-high prices. But how does it compare to LA? If you’re moving from New York, your expenses will go down by around 6%. Housing remains significantly more expensive on the West Coast, with median home costs in LA sitting around $912,500 compared to New York’s $677,200. However, groceries in LA are cheaper, with a 10.7% difference, and healthcare costs are lower by nearly 30%.
Cost of Living in San Diego vs Los Angeles
Overall, these two Californian centers are pretty close to each other in terms of expenses. San Diego generally has slightly higher consumer prices, while housing costs are lower compared to LA. For instance, the average rent in San Diego can be around $2,023 for a large two-bedroom apartment.
In terms of the overall cost of living, unless you own a home in either city, you might not notice a significant financial difference. However, San Diego’s higher grocery and restaurant prices might be offset by lower rents. Additionally, San Diego’s lifestyle is often seen as less hectic due to its more condensed layout, which can make it easier to navigate than the sprawling Los Angeles.
Relocation-Related Expenses
When figuring out your budget for the first couple of months in LA, it is essential to include the money you’ll spend on the relocation itself. If you’re planning on using professional services, you can easily do the math by contacting your chosen LA cross-country movers and requesting a price estimate.
Keep in mind that the more services you use, the higher the cost will be. For example, if you’re planning on getting packing services as well or shipping your car, that will pose an additional expense. However, it will all be worth it once all your belongings arrive at your new place in perfect condition without you having to lift a finger.
All in All, What Is the Cost of Living in California?
As you can see, the overall cost of living in LA is quite high when compared to other cities. If you’re not sure you’re ready for such a jump, regardless of your potential future salary, there are some great places all over the State of California that will provide you with the same great weather and high standards at a much lower price.
If you’re planning a move to California, Flat Price Auto Transport and Moving can help make your transition easier. From cross-country relocations to car shipping, we’ve got you covered, so contact us today to get you started.