How much house can I afford in Los Angeles?

The practical answer

Los Angeles affordability is a study in opposites: thanks to Prop 13, LA County's effective property tax is low (~0.7%), but California's income tax is the nation's highest and SoCal home prices demand big loans. The result: your after-tax income and down payment drive the answer far more than property tax.

A worked example: a couple earning $350,000 on the Westside with $300,000 invested, keeping a $60,000 cushion, on a 30-year fixed at 6.5%, models out to roughly a $1.1M home with about $110,000 down and a payment near $7,000/month — and a wide range around it: about $590k if they protect their full $1.5M wealth goal, up to about $1.6M stretching. In much of LA, Orange County, and greater Southern California, that stretch scenario is what it takes to buy in the neighborhoods people actually want.

• California income tax takes 9.3%+ at these incomes — a $350k LA household nets roughly what a $300k Texas household keeps.
• Prop 13 keeps LA County property tax near 0.7% effective — low taxes after purchase, but reassessment at sale means buying is the expensive moment.
• Most LA purchases at these prices are jumbo loans; rate shopping and points math matter more than in conforming-loan markets.
• From Santa Monica to Pasadena to the South Bay, HOA fees on condos vary wildly — model yours explicitly.

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