According to National Rental Landscape, the entire state of California is now having pretty severe housing shortage. It was reported that the high costs of housing are driving people out of the area, and these people usually have low-skill jobs.
According to Los Angeles Curbed, the new findings from the NYU Furman Center and CapitalOne do not seem to be very optimistic in the current Los Angeles rental scene. The report, which looked at the top 11 of the nation's largest cities, found that Los Angeles' renters are the second to the most burdened by their rent. It was also revealed that about 60 percent of the renters are paying more than 30 percent of their monthly income to their monthly rent.
It was found that the people who are paying 50 percent of their monthly income to their rent rose from 2006 to 2014. When people spend half of their income to their housing, this means that they would have to spend less on other expenses like healthcare and education. This would also make it impossible for them to save money.
Other cities included in the data were San Francisco and Washington. This made Los Angeles the second least affordable city in all the large cities the report surveyed. In 2014, only about 21 percent of the recently available units can be afforded by the median income renter in the greater Los Angeles area, which is a lower share compared to all but one of the cities included in the study.
It was said that the bug part of the issue is the wages or income of the renters. It was revealed that the average income of a person living in Los Angeles cannot keep up with the current value of the rents. This is the main reason why it is hard to rent around the city, according to the report. The people's current wages also cannot allow them to save enough money to buy their own house.
