Los Angeles Housing Market at a Glance
Median Home Price
$950,000
Median Monthly Rent
$3,200
Property Tax Rate
0.72%
Avg Home Insurance
$1,800/yr
Price-to-Rent Ratio: 24.7x (Lower ratios favor buying; higher ratios favor renting)
Los Angeles-Specific Insights
- → California's Prop 13 caps annual property tax increases at 2%, providing long-term tax stability.
- → High home prices mean substantial down payments; consider PMI impact if putting down less than 20%.
Run Your Los Angeles Scenario
Pre-filled with Los Angeles's median data. Adjust to your situation.
Open Calculator with Los Angeles Data →Key Factors for Los Angeles Buyers
1. Down Payment Requirements
With Los Angeles's median home price of $950,000, a 20% down payment is $190,000. Putting down less triggers PMI (typically 0.5–1.5% annually until you reach 20% equity).
2. Property Taxes
CA's property tax rate averages 0.72%, which translates to roughly $570/month on a median-priced home. This is below the national average.
3. Tax Deductions
Mortgage interest is deductible if you itemize (must exceed standard deduction: ~$14,600 single, ~$29,200 married in 2025). Combined with CA state taxes, itemizing may be worthwhile.
4. Opportunity Cost
If you rent and invest your down payment instead (e.g., S&P 500 averaging ~10% annually), you build wealth differently. The calculator models this trade-off month-by-month to find your break-even point.