West Hollywood has long been a desirable community known for its nightlife, walkable streets, and inclusive spirit. But as the cost of living continues to climb, many residents and business owners are asking: What’s driving the increase, and what does it mean for the city’s future?
Housing remains one of the most significant contributors to the cost-of-living increase. According to recent data, median home sales prices in West Hollywood increased 689% between 2000 and 2025, reaching $1,525,000 in January 2025. Rents have also surged, with 59% of renter households spending 30% or more of their gross income on housing costs. Additionally, 25% of renter households now spend more than 50% of their income on housing, highlighting the growing affordability challenge.
West Hollywood is predominantly a renter community, with 80.2% of households renting their homes—far higher than the 47.5% in the SCAG region. Single-person households account for 60.7% of all homes, compared to just 23.4% regionally. Efforts to develop more multi-family housing have been ongoing, with 20,529 such units making up nearly 80% of the city’s housing stock. However, the effectiveness of these measures remains a point of debate among policymakers, residents, and developers.
Seniors, who make up 15.2% of the population, face particular challenges, with nearly half of elderly households living on less than 30% of the area median income, and many relying on rent-controlled units to avoid displacement. Additionally, 34.7% of seniors in West Hollywood report ambulatory disabilities, a figure significantly higher than the regional rate of 22.9%.
It’s not just residential rents that are climbing. Commercial spaces along popular corridors like Santa Monica Boulevard and Sunset Strip have also seen rent hikes. This has put pressure on small, locally owned businesses that contribute to the city’s character, forcing some to relocate or close altogether.
Like much of the country, West Hollywood has felt the impact of broader economic trends. Inflation, increased material costs, and rising wages contribute to higher prices for goods, services, and construction projects. The city’s economy relies heavily on professional services, which employ 20.7% of local workers, and arts, entertainment, and recreation, which account for 18.8% of jobs.
As West Hollywood continues to grow and evolve, the question remains: How can the city maintain its vibrant, inclusive identity while ensuring it remains accessible for longtime residents and newcomers alike?
After reading this article,I hadn’t realize the city is predominately a renter community with 80% of households. I figured the percentage would be 40 to 55%. With such a community,most renters will stay a few years before moving on. With rental increases,there will be less incentive to stay in the city. Renters, for the most part, do not and will not feel they have a stake in the city’s future and will not petition for better streets and police coverage. They don’t feel part of a community and will not speak up on a issue that could be improved if… Read more »
Unfortunately our majority city council votes t increase taxes and wages as something that helps all. Rather than focusing on housing we have had a huge domino effect where landlords and owners just increase everything and pass it off to us to absorb. Why we need to have the highest sales tax in LA is beyond me. If the city has a surplus of 30 million dollars it is deplorable that they pushed this through. Ask all the United Here Local 11 how many of them now live and can afford West Hollywood? We are a city now for millionaires.… Read more »
With the increase in the cost of doing business in West Hollywood (higher minimum wage) that increases the cost of good and services across-the-board. So the low wage, low skill worker now gets a bump in salary, but now has to pay more for all goods and services so they’re really not coming out ahead at all. The middle class did not get a bump in salary but they too are paying more for all goods and services across-the-board so they’re worse off. The wealthy, while feeling the pinch, are less affected than the other two groups. So while the… Read more »
Look around a lot of existing businesses in the city limits. NEW hires. Long term employees were probably demanding increases across the board if they already made what the new ‘min wage is’ Rather than subject themselves to increasing a cashier to $25/hr who might have prev made $19/hr they are cutting jobs! and hiring new at the new min wage!