Los Angeles is known for many things … it is also known for its unaffordable housing. In 2010, Mayor Jimmy McMillan uttered the unforgettable cry, “The rent is too high!” And this meme went viral. The media took it and reported that the “City of Angels” was a place where angels, rather than humans, could afford to live if they wanted to survive.

Los Angeles beats New York in few ways, but Los Angeles home prices are definitely one. The houses here are even more expensive than in New York.

2015 was a mixed bag for people living in Los Angeles last year. If you are a low to middle income tenant, your chances of owning a home are very slim. And they will lose weight. On the other hand, if you are looking to sell your own, rent it or move, you have a lot of possibilities. This is because the housing inventory is low and there are still residents looking to own.

Reasons Los Angeles Real Estate Market Is So “Very Tight.”

Real estate experts like to offer reasons to explain the rise in house prices. The truth is that some of the reasons are of poor quality, but here are some of the speculations that have been spread according to reports:

Wages are relatively low: While people in cities like New York and San Francisco pay higher rents and mortgages on average, they also take home higher wages. In Los Angeles, you can expect to earn less than in other high-paying cities like Washington or New York. Think of a budget where rent is more than 47 percent of your salary and you will have an idea of ​​how difficult it has been to buy a home here. Homes are unaffordable, largely because people are writing smaller checks than elsewhere.

Prices cause stress: Some apartment renters have threatened to buy food stamps. Many cut other amenities just to make rent. As a result, many residents have migrated to another country or state. Most in Los Angeles and its suburbs or other parts of expensive California, for that matter, rent. That makes home prices high. The less to buy, the smaller the market becomes and the more expensive homes become for those who can afford to buy. Which brings you to reason three:

Home inventory is limited – more homeowners are clinging to their homes for fear of not being able to afford the high price of a new home. A recent article in the Los Angeles Times shows that few homebuyers have the high credit scores required to be approved for a mortgage, so potential buyers may prefer not to pay rather than pay more money to obtain a loan and risk lose their property because they cannot afford the repayments. In fact, since the 1970s, this has been the longest time to which people in Los Angeles held onto their homes – a median of 10 years.

There is also the risk of buying and having to pay higher property taxes. This, and the fewer people owning homes in the first place, causes a shrinking market. Take the basic law of economics that high demand equals small supply equals extortion costs, and you will see that this occurs in LA today. USC’s Richard Greene says Take Two: “There are more people who want to live in Los Angeles than there are houses for people in Los Angeles.”

Airbnb may be a culprit: Some people put Airbnb and other shared housing agencies in their sights, saying they have led to a spike in home prices and evictions. Airbnb disagrees. However, that hasn’t stopped communities like Santa Monica from enacting strict laws about home sharing.

LA has yet to accept such a measure.

Meanwhile:

Homelessness in Los Angeles has exploded. The number of people living on the streets increased 12 percent between 2013 and 2015. To that end, lawmakers in the city of Los Angeles pledged to spend $ 100 million next year and pledged to declare a state of emergency. for the homeless. However, they have yet to detail how to spend that money and have not declared such a state of emergency.

In 2010, Los Angeles Mayor Eric Garcetti pledged that the City would build 100,000 more homes by 20121. Last September, he noted that Los Angeles is on the way. Meanwhile, the city approved $ 7 billion in new construction in the last year alone, which may be the highest amount since the 1980s. The city also reportedly promised to build affordable housing plots for the least disadvantaged.

Sounds great until you do extensive research and find out they are building what? Luxury skyscrapers, hotels, commercial office building mainly in downtown Los Angeles and mainly for foreign billionaires and business people. At least it gives some people a place to wiggle their toes …

Meanwhile …

The rent went up. Fast. Rent was projected to increase more than 8 percent from 2014 to mid-2016. We’ve already passed that. Apartment rental site Zumper found that rents increased 11.6 percent in the last year alone.

It makes you wonder if LA is one step forward or three steps back … It also makes you wonder if the mayor will make his dream come true.

On the other hand, if you are selling a home, things are going very well for you. Home prices are rising rapidly, with Echo Park being the neighborhood with the strongest market.

Do you want quick and convenient money to buy or sell? What about a lender who ignores your credit?

Contact hard money commercial lenders in the neighborhood. They are one of the most reliable resources available to you and are becoming more popular as the market becomes more expensive.

However, you may want to do your research before getting one.