Unfortunately, this milestone has become less attainable over time; the homeownership rate has been declining across the country, particularly for younger generations. The decline is mostly attributed to low supply of housing, leading to extremely high costs and competition (Shoag et al, 2023). Costs in California are especially high, leading to the state reporting homeownership rates lower than any other in the country (Schlepp, 2023). Racial inequality in homeownership is also a major concern. Decades of racist policies such as racially restrictive covenants and redlining have contributed to Black Americans having a consistently lower homeownership rate than the average. This precludes Black Americans from advantages that help build generational wealth, such as mortgage tax deductions, federal mortgage subsidies, and asset sales (Brown, 2018). 

Because owning a home is out of reach for many, it is important to measure rentership rates, defined as the percentage of housing units occupied by someone other than the unit’s owner. In addition to the inability to afford a mortgage or continually getting outbid on properties, low credit and citizenship status are conditions that act as barriers to homeownership in Los Angeles. Renting offers flexibility, which is especially valuable in an expensive area like Southern California. Renters’ mobility  means they can more easily move to pursue a job, be closer to family and childcare, and seek out more affordable units. While renting has many benefits, it can impact the broader cost of living; high demand for rental units can lead to spikes in rental prices, as well as reduce the supply of homes for purchase.