Los Angeles County renters are finally seeing some relief after years of rising housing costs. Rents have fallen to their lowest level since late 2021, helped by the construction of more apartments and smaller rental units. However, Los Angeles remains an expensive place to live, especially for recent college graduates and workers who are just starting their careers.
The median asking rent in Los Angeles County fell to about $2,603 per month during the second quarter of 2026, according to data from Realtor.com. That is about $91 less per month than a year earlier, a decline of 3.4%.
The decrease also puts the typical rent nearly 10% below the high reached in 2022. While that is good news for renters searching for a new apartment, housing costs in Los Angeles are still high compared with incomes, particularly for younger workers.
More Apartments Are Helping Bring Rents Down
One of the main reasons rents are falling is that Los Angeles County has added more rental housing. During the years following the pandemic, developers built more apartment buildings throughout the region. More accessory dwelling units, commonly called ADUs or backyard homes, have also been added.
As these properties become available, renters have more choices. When there are more apartments competing for tenants, landlords can have a harder time raising prices. The change is especially noticeable among smaller apartments.
The median asking rent for properties with zero to two bedrooms fell about 3.6% from a year earlier to $2,255 per month. Larger rentals with three or more bedrooms had a median asking rent of approximately $3,441, down about 3%.
For renters who do not need a large home, the increase in smaller apartments and ADUs could make it easier to find more affordable options.
Overall, the typical Los Angeles County renter is now paying about $276 less per month compared with rental prices at their 2022 peak. That adds up to more than $3,300 over a full year.
Recent College Graduates Still Face High Housing Costs
Lower rents do not necessarily mean Los Angeles has become affordable. This is especially true for people graduating from college and beginning their first full-time jobs.
Realtor.com looked at estimated starting salaries for graduates in several popular fields, including computer science, business, social science and communications. The estimates were based on national starting salary projections that were adjusted upward to account for higher wages in the Los Angeles area.
A new computer science graduate working in Los Angeles County could earn approximately $94,000 per year. A business graduate could earn around $79,000, while a social science graduate could earn about $76,000. A communications graduate could start at approximately $73,000 per year.
Those salaries may sound relatively strong for workers beginning their careers, but Los Angeles housing costs can quickly take a large portion of that income.
The median asking rent for a studio apartment in Los Angeles County was approximately $2,004 per month during the second quarter of 2026.
At that price, a computer science graduate could spend about 25.7% of gross income on rent. A business graduate could spend about 30.4%, while a social science graduate could spend approximately 31.6%. A communications graduate could spend roughly 32.8% of gross income just on rent.
A common housing guideline recommends spending no more than about 30% of gross income on housing. Under that guideline, several types of new graduates would already be above the recommended level before paying for utilities, transportation, student loans, food, insurance and other expenses.
Los Angeles Is Still More Expensive Than Much of the Country
The affordability problem becomes clearer when Los Angeles is compared with other major metropolitan areas across the United States.
The median asking rent for a studio across the nation’s 50 largest metro areas was about $1,422 per month in June 2026, considerably less than the roughly $2,004 median studio rent in Los Angeles County.
At the national level, a typical studio would take up approximately 20.9% of the projected salary of a computer science graduate. It would consume about 24.8% of a business graduate’s salary, 25.8% for a social science graduate, and 26.8% for a communications graduate.
That means graduates in many other large metropolitan areas could have more of their income available after paying rent. Los Angeles is not the most difficult major rental market, however.
New York City has become even more expensive. The median asking rent for a studio there reached approximately $3,116 per month, according to Realtor.com. A computer science graduate could spend more than 38% of income on a typical studio, while a business graduate could spend more than 45%.
So while Los Angeles remains expensive, young workers there may have an easier time finding housing than those starting their careers in New York City.
Roommates and Smaller Homes Remain Important Options
For many recent graduates, renting an apartment alone may simply cost too much. That can make roommates an important option. Splitting the cost of a two-bedroom or larger apartment can sometimes reduce each person’s monthly housing expenses compared with renting separate studios.
Some younger adults may also decide to continue living with their parents while beginning their careers. Doing so can give them additional time to save money, pay down student loans or build an emergency fund before moving into their own apartment. ADUs are another growing option.
Los Angeles County has seen a large increase in these smaller homes in recent years. They can include converted garages, also known as ADU’s, backyard homes, or separate living spaces added to existing residential properties.
As more of these units become available, they add to the overall housing supply and create additional choices for people who do not need a large apartment.
The increase in rental supply appears to be one of the reasons landlords are facing more competition and asking rents have gradually moved down from their 2022 highs.
Falling Rents Are Good News, but Affordability Is Still a Problem
The direction of the Los Angeles rental market is encouraging for tenants. After rents increased sharply during and after the pandemic, prices have been moving downward. Los Angeles County’s median asking rent is now at its lowest level in several years, and renters searching for smaller apartments are seeing some of the biggest decreases.
Within the City of Los Angeles, the median asking rent also declined. It fell to approximately $2,742 per month during the second quarter of 2026, about 2% lower than a year earlier.
However, those numbers remain well above what many households can comfortably afford.
Following the traditional guideline of spending no more than 30% of income on housing, a household would need an annual income of approximately $109,680 to comfortably afford the typical rental in the City of Los Angeles. That is significantly higher than the city’s estimated median household income. For renters, this creates a mixed picture.
There are more apartments available, prices are lower than they were at the height of the rental market, and renters may have more choices. At the same time, the cost of housing still takes a large share of many people’s paychecks.
For recent college graduates, the challenge can be even greater because they are entering the workforce at the same time they are trying to establish themselves financially.
The Los Angeles rental market is becoming less expensive, but it has a long way to go before the typical apartment can be considered affordable for the typical worker.
