• In May 2006, the median-priced single family home in LA sold for about $502,727. This is more than an 18% price increase from May 2005.

• The monthly mortgage payment (including taxes and insurance) needed to buy the median-priced Los Angeles home (assuming an interest rate of 7%, a 10% down payment, and a loan period of 30 years) is $4,043/month. A family would need to earn about $147,018/year to support this mortgage, assuming they spend no more than 33% of the family's income.

As a result, homeownership is out of reach for most people holding the following jobs (with typical incomes in parenthesis):
High school teachers ($60,537/year)
Fire fighters ($66,307/year)
Patrol officers ($67,693/year)
Registered nurses ($67,755/year)
Physics professors ($70,372/year)
Electrical engineers ($81,108/year)
Pharmacists ($95,280/year)
Judges ($113,682/year)
Lawyers ($136,460/year)
Dentists ($140,572/year)

In Los Angeles County, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,269. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $50,760 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $24.60.

The state minimum wage worker earns an hourly wage of $6.75. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 145 hours per week, 52 weeks per year.

Or look at it another way: In Los Angeles County, the average renter earns about $15.33 an hour. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 64 hours per week, 52 weeks per year. More than half (53%) of renters in L.A. County spend more than 30% of their income on rent, a percentage that is higher than the state (47%), and the nation (41%).

As a result, rents in Los Angeles are out of reach for:
Waiters ($17,216/year)
Sewing machine operators ($18,151/year)
Food preparation workers ($18,750/year)
Maids ($19,308/year)
Childcare workers ($21,368/year)
Janitors ($22,535/year)
Security guards ($22,736/year)
Receptionists ($24,751/year)
Retail salespersons ($25,756/year)
Office clerks ( $26,311/year)
Secretaries ($32,337/year)
Truck drivers ($35,937/year)
Social workers ($39,346/year)
Retail managers ($39,514/year)
Licensed vocational nurses ($41,111/year)
Computer support staff ($44,917/year)
Electricians ($49,829/year)
Paralegals ($51,429/year)
Clergy ($52,237/year)