Cost of living in Los Angeles: Beginner's guide to expenses

Is the cost of living in Los Angeles affordable? Explore rent, groceries, transport, healthcare, entertainment costs, and money-saving tips.

Ivandzhelin

7 minute read

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Updated on 24 Sep 2024

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Living

Ready to embrace the City of Angels? You're in for a treat! With an average cost of living of $3,437, Los Angeles is one of the most expensive cities in the US. Yet, you can still find a way to enjoy LA without breaking the bank. This is where we come in.

Our goal is to help you live the La La Land dream without any budget blues! So, join us as we explore the 6 key living expenses in Los Angeles: rent, utilities, groceries, entertainment, healthcare, and getting around town.

While your spending habits influence your budget, you can expect an average monthly cost of living in Los Angeles of $3,437 for 1 person. Living expenses in Los Angeles are twice as high as the US average, mainly driven by the high cost of housing.

Yet, the average monthly salary in LA is $7,293 which is higher than the national average of $6,600. So, while the cost of living in Los Angeles is high, so are the salaries.

The table below gives you an overview of the 6 essential living expenses in Los Angeles for a single person:

Are you moving with your family? Then, your monthly cost of living in LA will be around $7,979 (renting a 2-bedroom apartment). That’s because, in addition to the abovementioned costs, you also have to consider things like a nanny or preschool, which are very expensive in Los Angeles.

Los Angeles has one of the highest rental costs in the US. With an average rental price of $2,239 per month, it’s no surprise that many residents choose to split the costs with roommates or live in some of the more affordable neighborhoods in Los Angeles.

Rent will be the biggest contributor your the high cost of living in LA. More than half of the households in Los Angeles spend over 30% of their income on rent, which the government considers to be above the affordability threshold.

Here’s a breakdown of what you can expect in terms of average rent in Los Angeles:

As two-thirds of Angelenos rent their homes, the average rent is quite high, especially in trendy areas. On average the cost of housing in LA is almost 140% higher than national average and 20% higher than the California state average.

If you want to live in some of the more popular and best neighborhoods in LA, like Silverlake and West Hollywood, your rental prices will be above the average we've shown here. Check out our guide on finding an apartment in LA to learn some tips and tricks when looking for a place to live.

Los Angeles can be a tough place to find a home as it's so popular. If you plan to move here, start exploring homes for rent in Los Angeles as soon as possible. With HousingAnywhere, you can easily check out lots of rental options online, which is particularly handy if you're moving to the US from abroad. You can even reserve place before you arrive, and we'll make sure your rent is protected for the first 48 hours after you move in.

Cost of utilities in Los Angeles

Contrary to other living expenses in Los Angeles, the price of utilities in fell by 1.2% in the last year. To cover the electricity, gas, water, and garbage pickup, you’ll need between $172 and $210 monthly.

Besides that, you need to consider the internet, which is between $60 and $80 monthly. One way you can save on cost of living in LA is by looking for an internet/cell phone bundle. Getting a mobile phone plan contract costs between $35 and $85, depending on the carrier and the amount of data you want. For affordable options, check out MintMobile or T-Mobile.

Unfortunately, groceries are around 11% more expensive in Los Angeles than in the rest of the US. A single person in Los Angeles can expect to spend between $400 and $500 monthly on groceries, making them the second-largest living expense in LA you'll have. Here’s a list of some essential items and their prices:

Here are some ways you can save on your weekly shopping:

• Buying from farmer's markets, fruit and vegetable stands, corner stores
• Shopping at supermarkets like Trader Joe's, Aldi, 99 cents store, Costco, Hispanic and Asian supermarkets
• Ordering your groceries through delivery services like Instacart and Amazon Prime as they often have deals and loyalty programs

Roughly 84% of Angelenos drive, as LA's public transportation needs improvement. If you’re a car owner, you should budget additional $300–$400. This is to cover expenses like

• Gas: $5–$6 per gallon
• Car insurance: between $67 and $200
• Parking: between $10–$20 daily

Don't forget that you'll need to factor in living expenses for registering your car in California and exchanging your driver's license if you're moving from another state.

If you don’t drive, your best option is public transport. While LA's public transport might not have the best reputation, the public transport authority (Metro) is implementing new routes and connections to improve safety, cleanliness, and frequency. Opting for the public transport over driving will significantly lower your cost of living in LA.

The public transport offers a range of ticket options. The basic journey fare is $1.75, and as an LA resident, the best option for you is to purchase a daily or weekly fare cap for your TAP card (public transport card) or Apple Pay card.

By getting a fare cap, you will pay at most $5 per day or $18 per week, and once you reach your cap, the following journeys are free. So if you buy 4 weekly caps, your monthly cost for public transport is $72.

You re-charge your TAP card with the fare cap. The basic journey fare remains $1.75, but you get 2 hours of free one-way transfers.

Check with your employer if they’re part of the Metro Employer Annual Pass Program.

Students at several universities in LA pay a reduced fare and have 2 options for accessing it: by getting a U-Pass (only for students of participating universities) or a Reduced Fare TAP card. In either case, the basic fare for students is $0.75, and a 7-day Cap is $6. The prices vary for U-Pass holders.

In the United States, you aren't required to have health insurance, so you don't have to stress about finding a health insurance provider when you move to Los Angeles. But, if you're coming from another country, health insurance might be necessary for your American visa.

If you opt for health insurance, remember that factors like your age, lifestyle, and medical history will influence your monthly premiums. But if you choose a more affordable provider (e.g. LA Care), you can expect to pay between $271 and $394 monthly. Some employers even share the costs, making it easier for their employees to manage their healthcare expenses.

If you decide to skip health insurance, you'll need to budget for healthcare expenses. Visiting an optometrist can cost around $131, while a trip to a doctor or dentist may run you about $140. On top of that, you'll be responsible for covering the cost of any medications, which can get as high as $500 and significantly drive up your cost of living in Los Angeles.

As the hub of Hollywood, the Dodgers, and the Lakers, Los Angeles stands out as one of the world's best cities for leisure and entertainment. To experience the fun side of the city, we recommend budgeting at least between $250 and $300 from your living expenses in Los Angeles.

You can hike in one of the many hiking trails in and around the city, spend the day at the beach, see LA's skyline from the Griffith Observatory, or go to a Lakers game. The city offers so many entertainment options, and you can do something different every day of the year.

When it comes to dining and nightlife, Los Angeles is the place to be. The city has a night-out spot for any occasion, from upscale restaurants and clubs to dive bars and taco trucks. Remember that partying in LA is expensive, so the more you go out, the more your cost of living in Los Angeles grows.

Although the City of Angeles is often seen as one of the pricier cities globally, you can manage the cost of living in Los Angeles without emptying your wallet with proper preparation and useful tools. Begin your search for rental homes in Los Angeles today, and your aspiration of living the Californian dream is well within reach!