Los Angeles renters eye cheaper cities while outsiders avoid moving to L.A.
A Zillow analysis shows L.A. renters are the most active in searching for rentals in Las Vegas and other affordable cities, while few non-residents look at L.A. listings.
According to a recent Zillow report, Los Angeles renters are the most likely to browse rental listings in Las Vegas and also lead the out-of-town interest in Phoenix, Salt Lake City and San Diego, driven by high rent burdens and limited new construction at home. Zillow chief economist Mischa Fisher says moving to these cities can provide immediate savings and a more attainable route to buying a home. UCLA’s Shane Phillips adds that L.A. residents are also heading to Southern states such as Florida, Georgia and North Carolina, and even the Midwest, despite weaker job markets there.
The study finds that only roughly 25% of Zillow clicks on L.A. rentals come from outside the metro, compared with nearly half of Austin searches. Within the region, Riverside attracts over 20% of its rental traffic from L.A. renters, offering about 3% more disposable income on average. Nonetheless, both Riverside and L.A. remain among the nation’s most expensive places to live, with high costs limiting homeownership for many households.
Why it matters
The trend highlights mounting housing affordability pressures in L.A. and growing migration to cheaper markets.
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