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Los Angeles ranks 9th for cost of living as groceries, gas, and rent squeeze residents

"If you're paying more at the pump, you might not think about the fact that it's costing more to truck the food around."

A gas station with a price board displaying gasoline prices and a mural in the background.

Photo Credit: iStock

Grocery, gasoline, housing, and utility prices continue to make Los Angeles one of the most expensive places to live in the United States, according to the Los Angeles Times.

Here's what to know

In a ranking based on the C2ER Cost of Living Index, which compares 248 urban areas using six categories, the Los Angeles-Long Beach area was the ninth most expensive place to live in the country during the second quarter. It was behind higher-cost markets like Manhattan, Honolulu, San José, and San Francisco.

Los Angeles incomes do not match those of some other extremely expensive metro areas either. Former California Employment Development Department director Michael Bernick told the L.A. Times, "There's also a very large low-wage workforce in Los Angeles."

The category-by-category results highlighted several familiar pressure points — No. 13 for groceries, No. 9 for housing, and No. 35 for utilities, which still puts the region among the top 15% most expensive areas nationwide.

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The L.A. Times reported that a 950-square-foot apartment in the region was listed at $3,084 a month in the survey. Gasoline was close to $5.98 per gallon, which is the second-highest price in the nation.

Sticker shock hit Chatsworth retiree Cheryl Palumbo when a stop at Ralphs produced only three bags of groceries for about $70.

"One pear for $1.91. Everything is just so crazy," Palumbo told the L.A. Times.

More background

UCLA Lewis Center housing expert Shane Phillips told the L.A. Times, "When the rest of the country was booming in the 2000s, Los Angeles was building effectively nothing. We did not respond to the boom at all."

California Grocers Association spokesperson Nate Rose also said, "If you're paying more at the pump, you might not think about the fact that it's costing more to truck the food around, but that is the reality. It's all connected."

The Times said trade conflicts and the U.S. war with Iran have pushed costs higher as well. Experts have also connected California's high gas prices to taxes, environmental charges, a summer gasoline blend designed to reduce smog, and refinery shutdowns.

Other recurring bills add to the burden even when they are not always reflected in broad cost-of-living measures. Mortgage lender Newrez estimated that Angelenos paid about $2,248 on average for home insurance in 2025 — up 75% from 2021.

What can be done?

Any long-term answer is likely bigger than what one household can do alone, including building more housing and reducing the supply constraints that keep rents and mortgages elevated.

If utility bills are part of the strain, EnergySage's solar map shows the average cost of a home solar panel system on a state-by-state level, along with details on solar panel incentives for each state. Together, those resources can help readers get the best price for rooftop solar panels and access available incentives.

EnergySage's services are free for homeowners to use, and with EnergySage's help, the average person can save up to $10,000 on solar purchases and installations. Comparing multiple installer quotes in one place can also make it easier to spot a fair deal before committing.

Adding battery storage to a solar setup is one of the best ways to protect your home during outages, save money on energy, and go off grid. Homeowners can explore EnergySage for information about home battery storage options, including competitive installation estimates.

Where can I learn more?

Los Angeles isn't the only place where higher prices for basics are hitting hard.

• Across the country, groceries and gas strain budgets as 95% of people in the U.S. report an affordability crisis.

• In California, rental listings surged after disasters, exposing rent spikes beyond wealthy neighborhoods.

• In major cities, office space conversion into apartments is gaining traction as a response to housing shortages.

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