Los Angeles, or most commonly known as the City of Angels, is the second largest city in the U.S. and hometown to around four million people. Reasons for relocating to Los Angeles are always different, but it’s very well known that L.A. is the centre of the entertainment world as the location of the most famous movie studios; which is why people in the movie industry decide to move to Los Angeles.
With over 100 world-class museums, Los Angeles is also known as a cultural mecca, meaning that this is another reason why so many artists decide to relocate here and get inspired by the ever-growing scene. Some people love the glamour and want to be close to it, while others relocate to pursue a career in arts; or perhaps they’ve got a job in one of the fast-growing tech companies located in the LA area.
Maybe the reason you are thinking of relocating to the City Of Angels has absolutely nothing to do with the reasons mentioned above, because living in a city with the most beautiful coastline and beautiful Mediterranean-like weather all year round is as good as it gets.
Although changing your surroundings and moving to a big city like L.A. may be overwhelming, let’s make a daunting process a little bit easier for you. Covering critical factors behind a big move like this, the following guide includes the most important things you should have in mind when moving to Los Angeles.
The city is infamously spread out, which is the main reason why it offers so many different types of housing. They range from smaller, modern studios to historic family-type houses. The fact that the accommodation is a bit more expensive is undeniable, but if you are flexible enough and go on a proper house hunt, you will perhaps find a place to make you feel right at home. There are two main types of accommodation in L.A. if you plan on staying for a more extended period of time: buying a real estate property or simply renting one.
Cost Of Real Estate & Financing: Due to the ongoing Covid-19 pandemic, it’s the first time in years market sales statistics show that home prices dropped 1% in the LA area. The average price per square foot in the City of Los Angeles is $551, which can vary depending on the neighbourhood you set your eyes onto. Speaking of the average prices on current listings, properties are listed for about $859,000, while the average cost of sold listings is lower; around $758,900.
The reason why housing prices rarely face a fall is tied to the government’s practices in California, as they have a lot of laws regulating new construction. The high real estate prices allow just a tiny portion of lucky people around the world to afford a home in Los Angeles without breaking their bank. Still, even if you are not going to play in the next Martin Scorsese movie, there is an ordinary way of buying a home in the most fabulous city in the States.
You can go with the usual way of financing a real estate purchase, through a loan or with a mortgage, and mortgage rates in California are better than ever. Consult with a professional Los Angeles mortgage broker to gather all the relevant information regarding real estate financing, rates, brokers, and all scenarios suited to your financial needs to purchase the Los Angeles home of your dreams.
Renting Costs: If buying a property is not something you can afford right now, then you should consider renting a place for yourself until you figure out how to own one. We can’t argue that renting prices are majorly different depending on the area of the city in which you picture yourself in. Downtown L.A. prices are pretty high since the average cost for a one-bedroom apartment is around $2,500. That is certainly not the case for the surrounding neighbourhoods like Westlake, Pico-Union, or Echo Park; where the average price for the same type of property is approximately $1,600.
According to the LA Times, there is a 3.3% decrease in rent-rates in Los Angeles for the first time in a decade, as a result of the current pandemic responsible for the sweep through the rental housing market. Some of the owners even offered a one-rent-free month to their tenants to keep them in this troublesome time.
Living Costs in L.A.: If you are considering moving to Los Angeles, you might know the real cost of living in the City of Angels. As an epicentre of the multibillion-dollar entertainment industry and the rapidly developing tech industry, you should be aware that most of the essentials for everyday life cost almost twice in comparison to other U.S. cities. However, there is a lot to choose from, and if you go through our list, you might plan your expenses upfront.
Cost of Utilities: Since the Los Angeles area has few climate types, some parts have hot summers like the San Fernando Valley and Southern California for instance. Yet, it can get cold in the winter as well. This is the main reason your utility bill can vary depending on which part you consider settling in. The average utility bill is around $127 per month for a 915 square foot apartment. Keep in mind that it also fluctuates greatly depending on the size of your home.
Transportation Cost: The entire L.A. county covers an area of 4,083 square miles, and having a car on disposal is a necessity in a huge city like Los Angeles. Apart from the vehicle itself, other expenses you will probably have while enjoying your ride will be gas and car insurance. If you don’t own a driver’s license and will move through the city using public transportation, you should know that the average monthly pass rate is around $100.
Food Cost: When it comes to food, L.A. will always keep you surprised with all kinds of delicious food from various cultures present on the Los Angeles food scene. You won’t go wrong if you choose food truck tacos or some upscale restaurant delicacies. The average cost of a mid-range meal meant for two people will cost you around $56 and the average price for coffee, let’s say cappuccino, for example, will cost you around $4. If you are trying to save some money, you can always cook your meals and do your grocery shopping in local markets.
Health Care Cost: When it comes to the Health Care Costs, amazingly enough, L.A. is cheaper than most other cities despite being considered an ultra-expensive city. Your routine visit to the Primary Care Physician will cost you around $121, which is almost double in the state capital of Sacramento, where you will pay $219. Also, it’s cheaper than other big cities like Boston ($193), Oregon ($216), Chicago ($165), and San Francisco as a winner with the most expensive routine check; which is around $251.
Final Thought: There is something for everyone in L.A. From the lovely mansions in Beverly Hills to the hipster bars of Silver Lake, everyone who comes to this city falls instantly under its spell. All the glamour, beauty, nature has its price but there is also a lot to choose from according to your opportunities. Get your dream job, pack your bags, and enjoy the ride in the City of Los Angeles. It’ll be worth it.