Jonelle Reyes

The Troubles of Housing in Los Angeles 

By Jonelle Reyes 

    Nowadays, it's' so hard to find a place to stay and live in La. It's a no-brainer; houses here are just too expensive, they provide little to no variety. How can a 1 bedroom house with 500 square ft be worth $2,000+, and we're talking about just renting. Living in Eagle Rock, I fail to notice really how much the neighboring house next to me really are. Until recently, when my next-door neighbor sold their home for 1 million dollars and it was only 1 bedroom, 1 bath, with 728 sq ft. It is mind-blowing to see such a ridiculous number like that for a house. It's understandable; no one wants to owe any mortgage. But overtime with a valued renter, it will get paid off and you gain a source of income. 

Why finding a home is hard in la?

    It's not a secret to hide. It's due to inflation and gentrification. Inflation is something we can not avoid as our paychecks rise up themselves. However, gentrification plays a significant role in communities, transforming it from “poor” into a considerably “wealthier” area. Then the area's economic value slowly increases, and more affluent crowds begin to see the neighborhood’s attractiveness. Eventually, businesses that cater to middle- and upper-class markets begin to rise in the area, pushing small businesses away. With business booming, simultaneous applying for jobs become harder as well. 

    Doing further research on rent inflation has grown into a concern. Rental prices have increased substantially, especially in the past year from 2014-2022. It started at $1600 and raise to about $2000 at an exponential rate, rising at $100 each year or more; that's a 15.9% increase rate( Hall, 2022). With rent rising, it makes it hard to stay stable. Other payments such as food, insurance, etc, play a role in affordability. We all live on a budget it is not like money comes out of nowhere, nor is it free. 

The impact of high rents

    Inflation also limits households’ buying power as prices have been rising faster than income. The U.S. Bureau of Labor Statistics reported that average hourly earnings actually decreased by 3 percent over the year when adjusted for inflation. Combined with the nationwide lack of affordable housing, households are struggling to keep up with the rent.

    Older adults particularly feel this pressure. A combination of fixed incomes, climbing rents, and higher prices have caused an increased risk of homelessness among this population. Some patronize food banks or skip meals just so that more of their Social Security income can go towards rent, while many providers report increases in the number of seniors they are serving.

Another factor

    Just recently, things have been slowly becoming normal from the Covid-19 pandemic. The recovery process from this year has slowly shown progress as we are more free to do activities, the mask requirement is less strict, and not everything is enclosed. But within that year, a lot of people loss their jobs or worked less due to the virus. Which then leads to lower income and not being able to pay rent. The COVID-19 pandemic has been impacting people’s lives in the United States, 8.8 million people were behind on their rent payments from April 27–May 9, 2022 ( Hall, 2022).

Community Opinions:

Melisa Lopez: “Rent in Los Angeles should not be expensive because most residents who live here are low to middle class who cannot afford the high rent. Through the years it started happening which meant restaurants, apartments, food got even more expensive because of all the high class people that moved here. La is known to have lots of tourist for shows, concerts, views,ect. Which just gives home owners the advantage of charging high prices for their homes/apartments. “ 

Rafael Bravo: “Why does rent go up in LA but not wages?”

Albert Mata: As a renter in LA it can be hard maintaining the lifestyle you please while having to pay not just rent but all the utilities that follow. Finding a good deal on pricing is possible but very slim, and in the area of my current location the average one bedroom goes at $1,650+ not including DWP and other utilities. Renters must be aware of the laws and contracts they get into when renting as some landlords like to up the price annually if your aren’t contracted into a lease making it hard as time goes by. This leaves you less play with gas or groceries. 

References

Healy, J. (2022, August 31). How affordable housing units end up in high-profile L.A. Developments - and how to find one. Los Angeles Times. Retrieved March 21, 2023, from https://www.latimes.com/homeless-housing/story/2022-08-31/affordable-housing-units-the-grand-high-profile-developments-and-how-to-find-one 

Lin, Summer. “California Rents Are Spiking - and in Places You Might Not Expect. 'I Was in Shock'.” Los Angeles Times, Los Angeles Times, 15 Aug. 2022, https://www.latimes.com/california/story/2022-08-15/california-rents-spiking-and-not-just-where-youd-expect. 

Hall, Andrew. “Rising Rents and Inflation Are Likely Increasing Low-Income Families' Risk of Homelessness.” National Alliance to End Homelessness, 17 June 2022, https://endhomelessness.org/blog/rising-rents-and-inflation-are-likely-increasing-low-income-families-risk-of-homelessness/.