The current price of gasoline at a filling station in San Diego, California, U.S., August 19, 2026. REUTERS/Mike Blake
Cost-of-living index hits 150, ranking 9th among 248 U.S. areas
Home prices and rents run 140% and 85% above national averages
Rising gas, insurance and grocery costs leave little room for savings
LOS ANGELES โ Residents of the โCity of Angelsโ are struggling under the weight of an increasingly punishing cost of living.
From housing and groceries to gasoline and insurance, prices across Los Angeles are significantly higher than in much of the country, with some expenses running two to three times the national average.
The Los Angeles-Long Beach metropolitan area ranks as the ninth-most expensive place to live in the nation, with housing and transportation costs placing particularly heavy pressure on household budgets.
According to the Council for Community and Economic Researchโs Cost of Living Index for the second quarter of 2026, Los Angeles-Long Beach registered a score of 150, ranking ninth among 248 surveyed areas. With the national average set at 100, the figure indicates that living costs in the region are about 50% higher than average.
California dominated the upper end of the rankings. San Jose scored 179, ranking third nationwide, followed by San Francisco at 169 in fourth place and Orange County at 165 in fifth. Los Angeles-Long Beach ranked ninth at 150, while San Diego came in 12th at 145.
Housing remains the biggest driver of L.A.โs high cost of living.
The average price of a new 2,400-square-foot home was $1.34 million, with a monthly mortgage payment of $6,318. The average monthly rent for a 950-square-foot apartment stood at $3,084.
Compared with averages across the areas surveyed by C2ER, L.A. home prices were 140% higher, while monthly mortgage costs were 144% higher. Apartment rents were 85% above the national survey average of $1,663.
Wages, meanwhile, have not kept pace with the regionโs extraordinary expenses. The average weekly wage in Los Angeles County was $1,704 in the first quarter. While above the national average, it was far below New York Cityโs $4,902 and San Mateo Countyโs $4,650.
Gasoline is another major burden in car-dependent Southern California. The average price of regular gasoline approached $5.98 per gallon during the second quarter and recently remained around $5.92 in Los Angeles. High fuel taxes, environmental costs, Californiaโs special gasoline blend and refinery constraints have all contributed to elevated prices.
California diesel prices have climbed to nearly $7.71 per gallon, raising costs for trucking, agriculture and other industries. Those transportation expenses eventually filter down to consumers through higher prices for groceries and other goods.
Insurance costs are also taking a growing bite out of household budgets. California auto insurance premiums have risen more than 30% since 2022. Los Angeles drivers paid an average of $3,730 last year, nearly 50% more than the statewide average.
The average homeowners insurance premium in Los Angeles reached $2,248 last year, up a staggering 75% from 2021.
Food has not escaped the inflationary pressure. Despite Californiaโs massive agricultural industry, Los Angeles ranked 13th nationwide for grocery costs. Since 2020, bananas have risen from about 70 cents to 90 cents per pound, lettuce from $1.70 to $2.20, and a bag of potatoes from $3 to $3.90.
With prices for goods and services nationwide rising more than 25% since the pandemic, affordability has become a major political issue. For many Los Angeles residents, however, the more immediate challenge is simply finding ways to make their monthly budgets work.
A Los Angeles resident in his 50s said soaring gasoline costs have forced him to cut back on driving.
โI donโt fill up the tank anymore,โ he said. โI put in $20 or $30 and see how far I can go. When things are like this, thereโs really not much to say about saving money or preparing for retirement.โ
