Living in Los Angeles costs 50% more than the national average, according to a quarterly index that ranks the region ninth most expensive among 248 U.S. urban areas.

The Council for Community and Economic Research (C2ER), an Arlington, Virginia-based nonprofit, released its Cost of Living Index for the second quarter of 2026. The Los Angeles-Long Beach area scored 150, where 100 represents the national average. Manhattan ranked first and Honolulu second, with three other New York City-area markets also placing above LA, the Los Angeles Times reported.

California dominated the top of the list. San Jose scored 179, San Francisco 169, Orange County 165 and San Diego 145, according to the Korea Daily. The index is a composite of six baskets of goods, including groceries, housing, transportation and utilities, with 57 items priced each quarter. Home costs carry the greatest weight.

Housing drives the gap

The average price of a new 2,400-square-foot home in the LA area was $1.34 million in the survey, with a monthly mortgage payment of $6,318. That ranked eighth nationally for mortgage cost. Compared with averages across all 248 surveyed areas, LA home prices were 140% higher and monthly mortgage costs were 144% higher.

Renters face a similar squeeze. The average monthly rent for a 950-square-foot apartment stood at $3,084, which is 85% above the national survey average of $1,663.

Shane Phillips, housing initiative manager at the UCLA Lewis Center for Regional Policy Studies, has pointed to decades of slow construction as a root cause. In a Spectrum News report on Sept. 7, Phillips said LA's pace of housing construction over the past 20 years has been "much, much slower than many other cities across the country."

Fuel, food and insurance

Gas prices compounded the strain. Regular gasoline in the LA area averaged nearly $5.98 per gallon during the second quarter, tied for second nationally behind San Francisco and Oakland. Diesel across California climbed to nearly $7.71 per gallon, raising costs for trucking and agriculture.

Those fuel costs ripple into grocery bills. LA 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.

Auto insurance premiums have climbed more than 30% since 2022. LA drivers paid an average of $3,730 in 2025, nearly 50% more than the statewide average, according to Insurify data cited by the Times. Homeowners insurance in LA reached $2,248 in 2025, up 75% from 2021, according to mortgage lender Newrez.

Wages and satisfaction lag

The average weekly wage in Los Angeles County was $1,704 in the first quarter of 2026, according to Bureau of Labor Statistics data. While above the national average, it trailed New York City's $4,902 and San Mateo County's $4,650. Michael Bernick, former director of the California Employment Development Department, told the Times that LA also has a large low-wage workforce.

A separate UCLA Luskin School of Public Affairs survey released April 15 found that resident satisfaction in Los Angeles had dropped to a historic low. Of roughly 1,400 county residents polled, 52% reported dissatisfaction with daily life. The cost of living score was 38 out of 100, well below the survey's 55-point median.

Mike Giovannelli, a 47-year-old unemployed animator in Chatsworth, told the Times he has changed how he fuels his car. "I don't fill up the tank anymore. I come with like $20 or $30," Giovannelli said. "Put that in, and see where I can get from there."

C2ER updates the index each quarter. The third-quarter report, covering July through September, is expected later this fall.