Moving to LA wondering about housing crisis tho... (Long Beach, Fresno: apartments, rentals)

[stroodl]

My wife and I are moving to LA from around Bakersfield. We are coming to the big city for the opportunities of jobs, things to do, access to hiking, great weather, etc. Also my wife can't find a job here but can in LA. We are college educated working in arts and finance.

Our budget is $2,500 for a 3 bedroom. The problem is we're worried we won't be able to afford a house down the road. With two very young children we don't want them growing up with no backyard in some low rise complex. How bad is the housing crisis? Can most people with a college degree afford a house?

We are looking to live between Downtown & Century City as our jobs will be there. Do you think that there's a high chance we'll be stuck in a small apartment forever? Advice is appreciated!

[PDR2015]

OP - $2500 is on the low end of the range for a 3BR rental but not impossible, especially if you look further east and can deal with a commute.

This is obviously a tough market for 1st time buyers. Although education helps (would assume this correlates with a higher paying job), there are many college educated people who hit the affordability wall due to high cost of living. A pretty average dual income family or an above average lone breadwinner making $150-200k can perhaps handle $450-600k of mortgage (and this may even be stretching it depending on what else is on expense side and whether there is one or more kids to support)... then consider the down-payment needed (say $100-150k)... and one is looking at a home $500-750k, which is enough for a condo/townhome but probably not for a house with a yard. That is, unless one goes further east or south of DTLA / century city.

If you and your spouse did not already have 2 kids (schools may be a consideration soon), I would say it's probably worth buying a home in the path of gentrification... I have seen friends do so over the last 5 to 8 years and bank several hundred thousand dollars of equity as the neighborhoods they bought into rose in value, which they then rolled into their next home. The rougher low priced areas can rise more in % terms during boom markets but can also be much more risky during recessions. Remember that very few people are able to buy their dream home initially and only do so over time once they get on the housing ladder.

And unless one or both of your careers can really benefit from being in LA or if you are really tied to the area due to family, I would also recommend other lower cost of living cities where your money can go further and you can get your foot on the housing ladder without having nighmarish commute or take the risk of being in a rougher neighborhood with kids.

[waltchan]

Originally Posted by stroodl

My wife and I are moving to LA from around Bakersfield. We are coming to the big city for the opportunities of jobs, things to do, access to hiking, great weather, etc. Also my wife can't find a job here but can in LA. We are college educated working in arts and finance.

Our budget is $2,500 for a 3 bedroom. The problem is we're worried we won't be able to afford a house down the road. With two very young children we don't want them growing up with no backyard in some low rise complex. How bad is the housing crisis? Can most people with a college degree afford a house?

We are looking to live between Downtown & Century City as our jobs will be there. Do you think that there's a high chance we'll be stuck in a small apartment forever? Advice is appreciated!

$2,500 only gets you Paramount, Norwalk, Compton, or eastside downtown Long Beach.

[subPrimeTime]

Most 2-bedrooms (which my wife and I are looking for right now) are $2,800-$3,300 in the West LA & Mid-city areas of LA, so your budget is pretty low for a 3-bedroom. I'm thinking you could find something deep in the Valley (San Fernando, Panorama City) potentially, but not in LA proper at that price point.

[stroodl]

I'm moving to LA soon with a $2.5k budget for 3 br apt. People commented that I couldn't afford to live in LA itself at that price. My wife and I have a combined income of around $110k, and bachelor's degrees from UCSB & Fresno State. That already puts us at nearly 2x the average income in the US.

Is LA really so expensive that a middle class family can't even afford an apartment in the city, let alone a house? If so how does LA's working class and poor manage to live? I'm honestly just in disbelief since we're currently renting a HOUSE in Bakersfield for only $1.6k.

Original post about moving to LA: city-data.com/forum/los-angeles/3276005-moving-la-wondering-about-housing-crisis.html

[FirebirdCamaro1220]

Originally Posted by stroodl

I'm moving to LA soon with a $2.5k budget for 3 br apt. People commented that I couldn't afford to live in LA itself at that price. My wife and I have a combined income of around $110k, and bachelor's degrees from UCSB & Fresno State. That already puts us at nearly 2x the average income in the US.

Is LA really so expensive that a middle class family can't even afford an apartment in the city, let alone a house? If so how does LA's working class and poor manage to live? I'm honestly just in disbelief since we're currently renting a HOUSE in Bakersfield for only $1.6k.

Original post about moving to LA: city-data.com/forum/los-angeles/3276005-moving-la-wondering-about-housing-crisis.html

It's true, just looking at 2 bedroom apartments, even in the IE, they're ranging from $1,600-$3,000/month (depending on quality/amenities). There are some nice 2 bedrooms in mid Wilshire (near La Brea/Wilshire) that are renting in the $2,500-$3,000/month range

If you're wondering how the poor and working class make it, the ones who live in LA proper most likely are living with family still in paid off houses, or have roommates if living in a bigger apartment

[FirebirdCamaro1220]

Originally Posted by subPrimeTime

Most 2-bedrooms (which my wife and I are looking for right now) are $2,800-$3,300 in the West LA & Mid-city areas of LA, so your budget is pretty low for a 3-bedroom. I'm thinking you could find something deep in the Valley (San Fernando, Panorama City) potentially, but not in LA proper at that price point.

Not to be technical, but the Valley is still in LA city limits, even though I know most here only consider "LA proper" to be the section of the city in the LA Basin

[timtemtym]

Commuting to Century City with that budget will be very difficult. You can use a site like hotpads or padmapper to see what's available in that price range, but a 3 bedroom will be very difficult, especially if you want a safe area.

The worst part of the Century City thing is that there isn't great public transportation in that area, otherwise you could use metrolink and metro to get you there.

San Fernando Valley is likely to come closest to a reasonable commute and some of your wishlist. The weather isn't going to be that much better than Bakersfield, but your price range won't get you a safe neighborhood with a decent commute south of the hills.

Norwalk area might be ok. The metrolink is reliable to get to downtown, and you could ride together before trying to navigate the expo line west and maybe a bus to Century City? That kind of commuting can consume much of your day.

Glendale has some rentals that might work with your budget. It is a very safe city with a a police force that shows up for any little thing (David Schultz properties was what I used when I lived there). It's a family friendly area with a good school district.

[floppo02]

Originally Posted by FirebirdCamaro1220

Not to be technical, but the Valley is still in LA city limits, even though I know most here only consider "LA proper" to be the section of the city in the LA Basin

That's crap, if they mean the basin, they should say the basin. LA proper is LA city (or country depending on the context). People don't say NYC proper to mean Manhattan and Brooklyn only.

[floppo02]

Originally Posted by FirebirdCamaro1220

It's true, just looking at 2 bedroom apartments, even in the IE, they're ranging from $1,600-$3,000/month (depending on quality/amenities). There are some nice 2 bedrooms in mid Wilshire (near La Brea/Wilshire) that are renting in the $2,500-$3,000/month range

If you're wondering how the poor and working class make it, the ones who live in LA proper most likely are living with family still in paid off houses, or have roommates if living in a bigger apartment

I have to assume that's right (however in the South Bay). Currently working part-time at Del Amo, most of them either live with their family or have an SO or rent a room. It's crazy, one of my co-workers lives in Compton and drops them off and comes back. So yesterday she was here at like 7 in the morning, and just spent 4 hours around the store until her shift started, man that sucked. I didn't pry at all because they were speaking in Spanish and I'm not supposed to "know" Spanish, and my shift was about to start.


But to have the easiest life here is to either make/have shloads of money or have family here.