A new report shows just how hard it is for those in Los Angeles to buy a home, where mortgage rates are twice as expensive as renting.
The median monthly mortgage in LA came in at $6,240 a month compared to the median monthly rent cost of $2,819, according to the latest report from Construction Coverage.
“Since the start of 2021, mortgage rates have more than doubled and home prices remain approximately 33% higher, driving a surge in the ‘buying premium’ across most U.S. markets,” per the report.
“As of early 2026, the national median monthly mortgage payment is 20% higher than the median rent, a dramatic reversal from the 2010s when buying was often cheaper.”
The study looked at 838 cities across the country, and LA was one of more than 100 cities where it is more affordable for a family or couple to rent a place rather than pay mortgage where the sky-high cost of living is making the dream of owning a home unattainable.
The report found the average Angeleno must fork over a hefty premium of 108.2% for a mortgage payment, where the median cost of a home sits at a whopping $920,605.
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For those who want to follow in their parents and grandparents footsteps there’s still hope in other parts of the country, but that number keeps shrinking every year.
Currently only 95 out of the 838 U.S. cities analyzed “still offer a cost advantage to buying—mostly in lower-cost Southern and Rust Belt markets,” the report noted.
Those places include states like Texas, Alabama, Georgia, or in Rust Belt locations like Ohio and Michigan.
“In these locations, home costs remain relatively low, allowing buyers to save relative to the cost of renting.”
The report noted that for years it was always a more affordable option to buy a home compared to renting.
“The aftermath of the Great Recession, combined with an extended period of low interest rates, kept mortgage payments affordable throughout much of the 2010s.
However, in 2022, things flipped and a “combination of soaring home prices and rapidly rising interest rates made renting the more affordable option in most markets,” the report noted.
“Mortgage rates have more than doubled since reaching record lows in January 2021, and while home price growth has slowed, the median home price remains approximately 33% higher over the same period.”
Despite this news, LA recently ranked the 8th most expensive rental market in the nation, with the median cost of one and two bedroom units at $2,290 and more than $3,110 respectively.
The post Angelenos’ dream of buying a home crushed as new report reveals unfathomable numbers appeared first on New York Post.
