Renters in Los Angeles are increasingly looking beyond city limits for new housing, with many setting their sights on other Western cities, according to a recent Zillow report. The data shows that L.A. residents are the most frequent out-of-towners checking out rentals in Las Vegas, Phoenix, Salt Lake City, and San Diego.
For many L.A. renters, a move to one of these cities could mean significant financial relief. Zillow’s Chief Economist Mischa Fisher noted that individuals moving from L.A., where they are often severely rent-burdened, to places like Las Vegas can find themselves with "considerable savings left over." He added that such a move can also be a strategic first step toward homeownership, as these areas offer a more sustainable path to buying a home.
Despite tens of thousands of people leaving L.A., housing costs within the region remain stubbornly high. Experts attribute this to a combination of changing household demographics and long-standing, unmet demand for housing. Shane Phillips, a housing expert at UCLA’s Lewis Center for Regional Policy studies, also points to the lack of new housing in Los Angeles as a key driver of the exodus. He observed that L.A. residents are also relocating to Southern states like Florida, Georgia, and North Carolina, which have been more active in building new housing, and even to the Midwest in search of affordability.
The Zillow report also highlights L.A.’s low appeal to prospective renters from outside the area. After New York, the L.A. metro area attracted the lowest percentage of outside search traffic for rentals, with only about one in four searches originating from outside the region. This contrasts sharply with cities like Austin, Texas, where close to half of rental inquiries came from outsiders, or even the San Francisco Bay Area, which, despite losing residents, sees around 45% of searches for San Francisco and San José properties coming from elsewhere.
While L.A.’s population has seen steady growth over the years, much of this increase is due to international immigration, which has outweighed the number of people leaving. However, the supply of new rental units, which typically form the bulk of new housing in Los Angeles, is diminishing even as demand persists. Phillips suggests that if a neighborhood isn't increasing its housing supply, it is likely to lose population.
For those who wish to remain closer to home, Zillow search trends indicate that Riverside is the most popular local area for rentals among L.A. residents, with more than 20% of Riverside rental searches originating from L.A. Mischa Fisher pointed out that Riverside offers a similar Southern California lifestyle while easing some of the financial burden for renters. He estimates that moving from L.A. to Riverside could make about 3% more of a renter's income available.
Riverside, while still considered expensive, is seen by Phillips as one of the few viable options in Southern California for individuals hoping to buy a home without an income exceeding $150,000 or $200,000 annually. He noted its distance and heat as downsides, but acknowledges its comparative affordability in the context of regional homeownership. Overall, L.A. remains one of the country's most expensive places to live, though a survey finds it is still cheaper than New York, Honolulu, Orange County, and San Francisco.
