Cost of living has heightened to such an extent that the lowest income holders have to spend a higher percentage of income on rent as compared to the highest income holders. A recent report from Apartment List declares that Los Angeles ranked 9th — for income inequality — among country’s 100 largest metro areas. And the rate of escalating disparity between rich and poor in Los Angeles has been 10% from 2008 to 2017.
Apartment list searched out that the higher income residents made 13.4 times more than the lower earners in 2017, in L.A. The lower-earning households in L.A. have to pay 14% more for housing in the same year than they paid in 2008. Whereas higher earning households paid 2% less for housing during the same time span.
The list finds that housing costs have risen to 26% for the poorest one-quarter of residents. Due to the escalating disparity between poor and rich, wealthy Angelenos have benefited from wage increase over the same duration. The consequences are incredible. Renters have been relegated to have little income for other necessities like food, medical care, and clothing.
A month ago, Los Angeles Mayor Eric Garcetti, during his state of the city address, related the renters’ efforts to the local housing crisis. He said: “Too many parents in this city are moving their families into cars because they’re living paycheck to paycheck and can’t keep up with the rent.”
Garcetti argued how landowners have unlawfully expelled Angelenos residing in rent-controlled housing and introduced an initiative to give low earning tenants in this plight free lawful representation to end homelessness before it begins. But he also declared that the sufferings tenants confront “continues to outpace solutions.”
Renters may not be able to manage a home in an expensive metropolitan area like Los Angeles, but they get 23% more than the median renter did a decade earlier. Landlords have raised rents for having people in the rental market with more money. According to Apartment list, the nominal median rent paid has inflated nationwide by 23%.