What income do I need to buy in Los Angeles?
For a median home near $875k, plan on $200k+ gross with 20% down at today’s rates — or a smaller home in the Valley.
Los Angeles · California
How Much House Can You Afford in Los Angeles?
Median home near $875,000. Typical household income near $82,000. Very high — median list prices sit above the 28% line for typical salaries. Calculator below uses Los Angeles tax and insurance defaults.
Local numbers for Los Angeles
$875,000Median home price
$273,437+Rough gross income for median home (3× rule)
0.72%Property tax (effective)
0.5%Insurance (of home value / yr)
On a median $875,000 home, tax near 0.72% is about $525/month. Insurance near 0.5% is about $364/month. HOA near $275/month where it applies.
LA buyers often compete with all-cash offers. Insurance in fire zones can add $300+ a month on top of tax.
Affordability in Los Angeles: local context
Los Angeles spans the Valley, the Westside, and South Bay. Median price near $875k is a blend — many areas sit higher. Do not assume the median fits your target zip.
Dual income is common. Even then, list prices and HOA can push the stress meter to Stretched at the 28% cap. A smaller home or a longer commute often beats maxing the lender limit.
Wildfire insurance changed the math. Ask for an insurance quote with the address, not a state average. Tax in LA County is near 0.72% of value on many homes.
First-time buyers sometimes target condos with lower list prices. Read the HOA docs — special assessments can hit like a second mortgage.
FAQ — Los Angeles
Is LA cheaper than San Francisco?
List prices are lower than SF, but insurance and HOA can still push the full payment high.