Rent Is Down, But Independence Is Still Out of Reach for LA’s Class of 2026
Despite a welcome drop in LA rent prices to near 5-year lows, moving out and living independently remains a distant dream for recent college graduates entering the workforce.
According to a recent report from Realtor.com, the median asking rent in Los Angeles County dropped to $2,603 in June, marking a 3.4% ($91) decrease from last year. Prices are now nearly 10% below their peak in summer 2022, primarily driven by a surge in new apartment construction across the county.
However, even with prices cooling off, entry-level salaries in Southern California are struggling to keep up with the cost of a basic studio apartment.
Major-by-Major: How Much Salary Goes to Rent?
To measure housing affordability for young professionals, Realtor.com paired starting salary data from the National Association of Colleges and Employers (NACE) with local LA rental rates.
During the second quarter, the median asking rent for a studio apartment in LA County stood at $2,004. Financial experts generally advise keeping housing costs under 30% of gross income, but in Los Angeles, only a select few majors clear that bar:
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Computer Science: With an average starting salary of $94,000, CS grads spend about 25.7% of their income on a studio, making them the only group safely under the 30% rule.
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Business: Earning around $79,000, business majors spend 30.4% of their gross income on rent.
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Social Sciences: Grads with an estimated $76,000 starting pay allocate 31.6% to housing.
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Communications: With starting salaries averaging $73,000, communications majors face the heaviest burden, shelling out nearly 33% of their paycheck for a studio.
LA vs. The Rest of the Nation
Studio Apartment Rent Affordability Comparison
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National Average: A typical U.S. studio rent averages $1,422. CS grads spend 20.9% of their salary on rent, while communications grads spend 26.8%.
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Los Angeles County: A studio averages $2,004 ($580 more per month than the national average).
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New York City: The country’s toughest market. With median studio rent at $3,116, even CS grads spend 38% of their earnings on rent, while business majors fork over an astonishing 45%.
The Roommate & Multi-Generational Boom
Because solo living eats up such a massive chunk of entry-level paychecks, more young adults in Los Angeles are opting for roommates or choosing to stay in their childhood bedrooms.
Nationwide, a record-breaking 25.2 million adults under age 35 were living with their parents last year. As housing costs continue to outpace starting salaries in major metropolitan hubs, multi-generational living is quickly shifting from a temporary pit stop to a long-term economic strategy.
