June 23, 2024 by Kazu Fujimoto
So I’m currently living as a renter based in Los Angeles, California.
I live in a relatively lower cost of living area within the Los Angeles County and have been paying $1850/month for the last year or so.
My rent has increased about 4% to $1925/month.
My rent history in the current location that I’m staying at looks something like, for a 1 bedroom / 1 bath.
- March 2022 ~ March 2023: $1750
- March 2023 ~ June 2024: $1850
- July 2024 ~ Onwards: $1925
Utilities included, but internet paid separately. No extra parking costs.
Can you believe I used to live somewhere before March 2022 where I paid even more?
Generally, the rent increases themselves that I’ve been going through have been about 4-6% annually.
I always say things like if your wage growth does not exceed that of inflation, you will be getting left behind.
Tell me inflation and cost of living increases don’t exist and I will show you first hand what I’m going through.
Thankfully, I’m in a position such that I can stomach increases like these just fine. Along with a $100K+ income job, I do work on a business on the side. The average yearly 3% increases from working our day jobs will just not cut it at the rate this keeps going.
Along with this rent increase, I go through other price increases such as:
- Groceries
- Dining out at restaurants
- Goods and services
- Clothing
- Gym membership
- Subscriptions – Netflix, YouTube
- Pretty much anything else
Everything has been getting more expensive year after year and the rate at which it has been happening has exponentially increased after COVID.
This means that as I continue my current job with the rate of my salary increase, the quality of my life will be lower and I will not be able to afford
In California, The Tenant Protection Act caps rent increases such that landlords cannot raise rent more than 10% total or 5% plus the percentage change in the cost of living – whichever is lower over a 12 month period. (LINK)
As of date, according to the U.S Bureau of Labor Statistics, the average 12 month CPI change has in 2024 has been hovering in that 3% range that the Federal Reserve has been targeting due to their monetary policy regarding interest rates. (LINK)
Although the U.S Bureau of Economic Analysis states that wage growth has increased 4.97% in April of 2024 over the same month in the previous year, I can firsthand say through experience and through many of the people I know that is not the case for most.
Most are not seeing significant wage growth and are seeing lower quality of life.
The main takeaway from all of this is that you have to take care of yourself.
You will need to do things such as job hop, take on a side hustle, build additional skillsets such that you can make more money and continue to increase the quality of your life. At the rate things are going, your quality of life will continue to go down as these price increases continue.
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About the author
Kazuyoshi Fujimoto, PE
Founder | Engineering Career Coach | Principal Mechanical Engineer
Kazu oversees all of ultmeche’s engineering services. He provides consulting such as resume reviews, rewrites, mock interviews, and all services career related. Additionally, Kazu performs consulting work regarding Oil & Gas, Automotive, and Aerospace & Defense. Kazu is licensed as a professional engineer in the state of California and has 9+ years of experience in Oil & Gas, Automotive, and Aerospace & Defense.