Los Angeles Ranked Last in Home Affordability and Homebuilding

Los Angeles has been ranked last among the 100 largest metropolitan areas in the United States for home affordability and homebuilding, receiving an 'F' on Realtor.com's national housing report card. The typical home in the Los Angeles area is listed at $1,129,415, while the median household income is $91,380 per year. According to the research, a median earner purchasing this typical home with a 10% down payment and a 6.5% 30-year mortgage would see their monthly payment consume 84.4% of their income, significantly exceeding the 30% threshold commonly used for housing affordability. To meet this threshold, a buyer would need a down payment of 68%, approximately $768,000. Realtor.com Senior Economist Joel Berner stated, "Put simply, a monthly mortgage payment on the typical home in LA is not affordable to typical income-earners." The study evaluated the 100 largest metro areas based on affordability and homebuilding metrics, with Los Angeles-Long Beach scoring just 12 out of 100, including a 0.9 affordability component score and a homebuilding score of 23.1. A score of 30 or below automatically results in an 'F'. The region's permit-to-population ratio stands at 0.47, indicating fewer homes are being permitted per resident compared to the national average, suggesting limited supply-side price relief for buyers. Other California cities also performed poorly, with Oxnard-Thousand Oaks-Ventura at 95th, San Francisco-Oakland at 94th, and San Diego at 92nd, all receiving 'Fs'. In total, seven of the 13 metros that received an 'F' were in California. The report noted that Des Moines, Iowa, ranked highest for affordability and homebuilding.