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The Real Deal Los Angeles

Nearly a third of Angelenos with 6-figure salaries rent their home

Number of renters earning $100K has jumped 33% since 2008
February 27, 2019 01:00PM

Photo of L.A. skyline from Echo Park (Credit: Wikipedia and iStock)

At least 30 percent of Angelenos who earn $100,000 or more per year are renting their home, new data shows.

In 2008, about a quarter of L.A. residents making six figures were renting. But a new report by Apartment List shows that share had risen five percent by 2017, when the city was home to more than 450,000 high-income renters. CurbedLA first reported the story.

Only San Francisco and San Jose have larger percentages of six-figure earners who rent. The West Coast cities are part of a nationwide trend of residents choosing to rent rather than own.

The report attributes some of the change to increased development of luxury housing, one part of why developers often favor high-priced rental towers over more affordable projects.

“This trend will likely lead to greater inequality within the rental market,” as high earners compete with lower income families at a higher rate, said Rob Warnock, an Apartment List researcher.

Home prices are close to an all-time high in Los Angeles, meaning high-income renters may not see owning as a viable option. Last year, a separate report from Attom Data Solutions found that making mortgage payments on a median-priced home in L.A. would require an income of $167,182, well above the $100,000 classified as “high-income” in the Apartment List report. [Curbed]Gregory Cornfield