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FRC City Analysis · May 2026

Los Angeles, CA
Housing Affordability

CRISIS — 8% of homes affordable
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LA's housing gap is structural. LAUSD teachers earning $68K need $206K to buy the median home — a gap of $138K per year. Many teachers commute from desert cities like Lancaster, 60+ miles away.

$890,000
Median Home Price
$5,499/mo
Monthly PITI (20% down)
$206,000
Income Needed (36% DTI)
$71,000
Median Household Income
+$135,000
Annual Income Gap
8%
Homes Affordable on Median

The Math

At today's 6.7% mortgage rate with 20% down, the monthly PITI on Los Angeles's median home is $5,499. To keep housing under 36% of gross income (the back-end DTI threshold most lenders use), you need $206,000/year — 290% of the city's median income.

The local median income of $71,000 leaves a gap of $135,000/year. This means the median household needs to earn 190% more to comfortably qualify for the median home.

Affordable Alternatives

📍 Nearest affordable areas: Norwalk, Inglewood, Ontario
These surrounding communities typically offer lower home prices within commuting distance.
See If You'd Qualify

These are market averages. Your situation depends on your income, debts, and credit.

🏦 Ask Zai About Los Angeles → ← All Cities

Source: BLS OEWS 2024, Zillow ZHVI May 2026, FRC Underwriting Model. Not financial advice. Educational analysis only.

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