Is 150k A Good Salary In Los Angeles
The short answer is yes, 150k is a good salary in Los Angeles. The long answer is that it depends on your lifestyle and what you want to do with the money.
According to personal finance website Nerdwallet, the median household income in Los Angeles is $60,733. That means half of all households in Los Angeles earn less than $60,733, while half earn more.
In Los Angeles County (which includes Compton, Long Beach, Santa Monica and other cities), the median household income is $56,807. Again, half of all households earn less than $56,807 while half earn more.
At $150k per year, you’re making well above average for both Los Angeles County and Los Angeles city proper—which means if you’re looking for a new job or trying to negotiate a raise at your current one, you’ve got some ammo at your disposal!
Is 150k A Good Salary In Los Angeles
- You’ll need a staggering six-figure income to live comfortably in Los Angeles: at least $136,207 if you’re paying rent or $150,391 if you own a house.
- The salary needed to live comfortably in Los Angeles has risen by more than $25,000 in the past year, due to rising annual costs of transportation and utilities.
- Within California, the cities of San Francisco, San Jose and Los Angeles come with the highest cost of living comfortably.
Los Angeles is home to about 4 million people who enjoy the sunny weather, cultural diversity and acclaimed foodie scene. But the benefits of living in L.A. come at a steep price.
A GOBankingRates study determined the salary you’ll need to live comfortably in 50 major U.S. cities, and Los Angeles came in at No. 3 for the highest required salary for renters. You’ll need to make a salary of $136,207 if you’re paying rent — or $150,391 if you own your own home — to live well in L.A.
This isn’t the first year that the GOBankingRates study has determined you’ll need a six-figure salary to live comfortably in L.A. Check out the amounts needed to live comfortably from years past:
- 2016: $93,690
- 2017: $98,775
- 2018: $110,420
- 2019: $136,207 if paying rent, $150,391 if paying a mortgage
Make Your Money Work for You
With a median household income of $54,501, it would seem that many who live in L.A. are living well above their means.
Housing costs alone would make a significant dent in necessary expenses, with a median annual rent payment of $37,656.
Find Out: How Much You Need to Live Comfortably in 50 Major US Cities
What’s Behind the Rising Cost of Living Comfortably?
Living in Los Angeles is notoriously pricey, but you might be surprised by just how much the basic living expenses will run you. Check out the cost of annual necessities by year below:
| Annual Cost of Living Expenses in Los Angeles, 2016-2019 | |||||
| Year | Rent | Groceries | Utilities | Transportation | Healthcare |
| 2016 | $33,060.00 | $4,197.00 | $1,491.48 | $5,400.00 | $2,697.00 |
| 2017 | $35,064.00 | $4,014.36 | $1,596.36 | $5,449.00 | $3,264.00 |
| 2018 | $36,180.00 | $4,014.36 | $2,353.56 | $9,518.00 | $3,144.00 |
| 2019 | $37,656.00 | $4,363.00 | $3,605.84 | $18,290.16 | $4,188.80 |
Annual rent has steadily climbed into the high $30,000s. The costs of groceries, utilities and healthcare have also been increasing gradually throughout the past four years.
One outlier, though, is transportation — whereas annual transportation costs might have run you $5,400 in 2016, you’ll pay more than three times that in 2019 at $18,290.16.
To determine the figures for this study, GOBankingRates utilized the 50/30/20 rule, which assumes that 50% of income should go toward necessities, 30% should go toward discretionary spending and 20% should be saved.
Make Your Money Work for You
The costs in the table above are all considered necessities. In 2019, Los Angeles natives will be paying $64,276.21 in annual necessities if they rent and $74,224.21 if they have a mortgage.
Of course, many city dwellers don’t need to earn six figures to make a living. But when you’re using a good chunk of your budget — if not all of your budget — on necessities, then you don’t have much left over to save for retirement or even go out to dinner to celebrate a special occasion.
Related: The Cost of Living Is Quickly Rising in These 20 US Cities
Los Angeles Isn’t the Only City Where You Need Six Figures to Live Comfortably
Out of the major U.S. cities where you will need to make at least six figures to live comfortably as a renter, six are in California. If you’re living in San Francisco or San Jose, you’ll need to make $164,213.54 or $143,670, respectively. Those figures are higher if you’re paying a mortgage rather than renting.
It probably comes as no surprise that New Yorkers should also make well into the six figures to live comfortably in the Big Apple. According to the study, you’ll need to make $128,552.42 per year to pay for necessities and have money left over to save. Some other contenders were Honolulu ($125,329.30); Washington, D.C. ($122,933.82); Boston ($120,413.32); and Seattle ($115,722.24).
