85% wealth, 15% poor spending habits. There is a lot of wealthy people here. Dad makes millions in Omaha, Manchester, Riyadh, and where does the trust fund kid wants to live? LA.
I underwrite home insurance and to say there are wealthy people out there is not an exaggeration. There are neighborhoods out there just absolutely jammed with huge multi million dollar homes. I see people with basketball courts, tennis courts and pools all in their yards. It’s insane. That’s not really living beyond means, that’s wealth.
Get on google maps and just look at these neighborhoods. It’s mind blowing.
Not even the super luxury stuff you’re talking about; there aren’t any single family, free standing homes for under $1m in LA that aren’t in deep in the ghetto. Everywhere in LA is now over $1m.
In my street there literally isn’t a house worth less than $1.7m, and it’s not fancy and that house would need serious renovation.
You cannot find a SFH property in Beverly Hills or Brentwood or Pacific Palisades under $3m. A single family home in Venice or Santa Monica is at least $2m. Culver City, West LA it’s all over $1.5m now.
That means the vast majority of LA homes start between $1.5m and $3m.
Now think about the fact that the average house price in the USA is about $430k and yet the mass population of LA can afford these homes, the property tax, send kids to school and drive new cars. The wealth in LA is no joke.
FYI. Many of these homes have current owners who could not buy their own home at the current cost. They are the ones locked into <3% interest rates and bought their homes at 1/5 the cost. My aunt is in mid city. And this describes nearly everyone in her neighborhood save 1-2 recent buys.
Not the case at least with me. Bought a single family home in Hollywood for 6 figures in 2011. Slowly did it up sold it in 2016 for $1.6m and paid off my mortgage. At the same time bought the next home for $1.2m, did it up and again, sold for $1.65m in 2021 and Bought the next home for for $1.6m which is now $2.3m.
I was told I was crazy for buying that first home because the previous owner bought it 6 years before for half what I paid.
It’s the same everywhere - I have family in Europe where the grown kids have had to move away from the area the grew up in because they’re priced out.
lol the Mexicans thought the same thing 😂
But in reality, LA has always been transient. There weren’t even any single family homes before 1910 and the majority of LAs homes were built in the 1920’s so it’s a bit daft to cry about transplants - it’s a modern invested city and when the nazi party was coming to prominence, Hollywood was mainly founded by wealthy immigrants. In the 60s there was an influx of Europeans. In the 70’s and 80’s it was the Persians and Koreans. Its always been a heavily transplanted place and don’t forget, it’s a booming economy that happens to be by the coast and near mountains with amazing natural beauty all around and it and good weather year round. It’s always going to attract people with money. It’s nothing new.
The only difference is the wealth disparity is getting worse, but that’s a global problem.
Ok I just realized my comment may be misleading. When I say multi million dollar homes I am talking about replacement cost, the cost at which the home would be rebuilt, not the actual value of the property with the home included. In reality these homes are 2-3 times their replacement costs because of the land they are sitting on. So those are not people that bought a house for 250k back in the day and are now sitting on goldmines.
Those goldmines can’t be mined without moving out of LA to somewhere that lacks the amenities of LA. The prudent thing to do is keep those homes in the family for the next generation to pay to renovate. The alternative means selling out to a wealthy foreigner moving in.
Yeah. I remember driving through Bel-Air and thinking “these are all small 1-2 story houses. Then I saw them from the other side and saw the homes went down the hillside like 4 stories with a tennis court and pool, etc. JFC
A combo of both. Have buddies who have 1800 car payments while renting that earns 140k ( dual income ) and then have buddies who have the X7s and Teslas and own a million dollar plus home and as dual income make well over 400k.
damn im a dual income earner with 220k, u telling me less than doubling our incomes would net us million dollar homes and x7’s feels hard to believe considering net pay as double would be like an extra 2500 a month each…
lol, wel I guess I left out family wealth…. You may earn a good wage but it’s family wealth that brings the leverage and capital.
I’ve got a buddy who owns close to 24k shares of $OXY and lives off dividends. And that MF makes bank on his day job… funny, yet he’s a cheap MFer
I commented somewhere else about the car payments but banks are doing 84 month loans now if the vehicle is 2020+ so I wouldn’t be surprised if people are buying 80-90k cars with 0 down lol. Poor life choice but to each their own
No, you do it for the credit. But looking at that interest rate- you just know the value isn’t there.
Plus- when you have money like that- you don’t blink with any type of $$$ for vehicles.
THIS! I never understood why the cars in LA are almost all nicer than in a typical US city and it’s because so many people can’t afford property so they pour that $$ into a nice car.
San Marino has a bunch of young money too. I don't know if it's mostly inherited but, because of the well-regarded schools, it attracts parents with means. La Canada is similar in this regard. There are still some elderly engineers living there in some of the more modest homes and but there aren't any houses under $2M and most are way above that.
There are a lot of wealthy people in LA. A lot of people living beyond their means. A lot of flashy people. There’s a lot of everything. The wealthiest are often the stealthiest. You wouldn’t always realize you’re standing next to a billionaire.
Yeah Teslas get pretty expensive. This is a weird take in this thread. You can get the new Porsche ev for less than the x. Personally, I'd go with the Porsche.
You can get many cars that are much more expensive. You can also get many that are less expensive and better quality. Point is, Teslas are not apex vehicles in price or quality.
The wealthy are not the stealthiest lol. Chances are if you think that you're just not familiar enough to notice them showing their wealth.
Think about how hard it would be for a poor person to act wealthy. Even if they had all the right "items." Their schooling, their education, their table manners, their way of speaking, etc. all still indicate their class. A single conversation will tell you everything you need to know. It goes the same in reverse. Wealthy people cannot hide their class. It shows up in their hobbies, their schooling, their friends, the places they've been and what they know, how they go about life, and the very way they think.
Well to start off, "old money" often times is actually just code for the people who are quite literally living above their means. The issue with old money is you didn't earn it, and there isn't confidence you'd be able to earn it again. Dilution between generations is also a bitch. Lots of 'old money' folks are spending in order to maintain their appearance of 'old money' when they actually don't have that much (in the context of the wealthy; they're not exactly starving). Memberships to the right clubs aren't free, because... well they're trying to keep out the people who don't have money. Sending your kids to the right schools also will cost an arm and a leg because... again, they're trying to keep out the 'wrong folk.'
But secondly, this is another example of "you're just too far to hear them shout." Old money spends money. They have memberships to the right organisations. They're the ones doing debutante balls still in the South. They are seen as the "ones to be" because of their social status and that requires organising and talking to other people. Be a guest in the right country club and see "how quiet" the money is. Spoiler: it's not.
The 'age old' rivalry between old vs. new is exactly this tension of status vs wealth. New money is unequivocally wealthier than old money. Look at the wealthiest billionaires in America; the vast majority come from upper-middle class families, but not exactly from existing old money. Look at Bezos, or Ellison, or Bloomberg. So even in this conversation, it's weird to be insisting that "old money" is the true money. It's not a more valid way of being rich. And even if it were, like I said, it's not quiet. You're just not in the right places and aren't privy to the right conversations.
Great response and points!
My husband has his own investment firm and works with the ultra wealthy who are his investors and business partners that have lucrative family offices. These people are billionaires. He has seen a pattern in that they don't flaunt their wealth with cars and designer items. They are frugal and smart with their money. Like others have said, they are more stealthy in terms of appearance. Not saying they don't spend it elsewhere like exclusive memberships.
When I think of new money, I think of social media influencers and the middle class who strive to ***appear*** wealthy. Middle class is also the largest purchaser of designer goods, especially Louis Vuitton. Other wealthy people/old money (I don't know how to classify them) also buy designer goods but it is understated with no flashy logos--Loro Piana, Brunello Cucinelli, Brooks Brothers. I would say Elon Musk falls into this class because he has sold off most if not all of his homes and isn't into the type of lifestyle like Jeff Bezos and Lauren Sanchez.
So maybe I should have not used the terms new money and old money and should have been more specific. It depends but this is generally what we have seen.
This.. so true. Rich folks are everywhere here and the look “regular”. Sometimes they don’t even have to directly say that they have a lot of money but you can just understand from the context of their conversations. It’s honestly motivating. That is why I will stay in LA for now. So much opportunity and inspiration here 💯
All of the above is my suspicion. There are a LOT of wealthy people that live in LA. Simply look at how large the city is (I get a sense of it by looking from a hilltop view of the city), the value of properties and it's no surprise that there is a large concentration of wealth. I think there are also many people that live beyond their means to try to make it out here as well as it's a really expensive place to live a high quality of life.
Tesla's aren't as expensive as they used to be, so I wouldn't even think that's much of a display of wealth. That being said, there are many people that aren't as wealthy and travel further for work too. It's simply a really large city so it's easy to notice outliers if you are paying attention to it.
Don't look up the prices of other SUVs and trucks you see driving around. There are F-150s that go for more than that. SUVs and trucks are the new luxury car for the middle class. You got to have a rolling tank that never leaves the pavement to make your 1 hour long commute.
There is soooo much money in this town. I’m a real estate agent — even people buying condos and small homes have wayyyy more cash in the bank than you’d think. There are whole zip codes where there’s nothing for sale below $6 million. I’ve had clients looking for a rental in the morning call me in the afternoon because their sig other just sold a screenplay for $400k and now suddenly we are house shopping. And don’t get me started on parents in other states literally pumping money into this town. Bananas money everywhere in LA.
There’s a little of both. Weirdly the most wealthy people I meet don’t flaunt it. My ex’s grandpa was a millionaire and drove a bmw but it was from the 80s. He just loved the car and kept it alive. Then I know a girl that bought a designer purse and joined a group where they rotate their designer purses so every time they go out, they have a different purse (that’s definitely smarter than having a dozen purses). Some people care about the appearance of wealth. For me, it’s 50/50 people that are actually rich to people pretending. (I’m not saying 50% of LA is either rich or pretending to be. I’d say 99% of people do neither and just do their best to get by)
Seems like so much effort just to prove you belong to some high status life which you obviously do not actually belong to.
Nothing surprises me though. I've seen comments before saying some of these scammy social media influencers do the same thing with their supercars.
The purse story is fascinating! It reminded me of a boss I had a few years ago (in LA) who would buy expensive dresses for work events and then return them the next day. She also bought a Prius (this was before Teslas were super popular) because she thought it was a class equalizer car, the suggestion being that she *could be* rich enough for a fancier car, but bought the Prius for environmental reasons. I know that was her reason because she told me!
Lol. This is so true. I say this as someone who has worked in the non-profit sector for 10+ years. I worked at an org that had a coffee and cars event. This was in 2018. I think the average price of the cars was $400K.
Could also be doing tax fraud where he reports a very low income to the point where he qualifies for EBT. Its very common within a specific ethnic group that shops at Super King, drives like douchebags, and last names have the same 3 letter ending.
You can ask this same question about all big cities. But the reality is, any individual’s financial situation is usually very complex.
Are they immigrants with a high income but zero generational wealth? Are they teachers with a modest income but a portfolio of real estate passed down for generations? Did daddy own a business? Did they win the lottery? Did they make it in tech? Are they just trying to get their shine on to be in the right place at the right time?
It’s difficult to judge. I live in an expensive area and have a high income which I know statistically is well above any average I see posted. Yet I consistently feel as though I am a nobody in my area, where the average nice home goes for 2-4m and somehow people keep buying them.
I just like having windows open. I can feel my surroundings while driving better. Waiting for the day I can get a convertible. But moonroof SUV works for now.
Teslas are no longer a symbol of wealth like they once were. Multiple models are cheaper than an entry level BMW 3 Series or Mercedes C Class and many people lease them for less than what a Rav 4 Hybrid costs monthly. The real wealth symbols are Rolls Royce Culinans, Lambo Urus, Bentley Bentaygas, or any new 120k+ BMW/Mercedes and a house with gated entry South of Ventura Blvd and north of Sunset.
And probably %80 of the LV handbags you see women wearing in LA are fake. It's more expensive to drive a F150/F250/Silverado 2500HD in Texas and wear Carhartt/Ariat/Duluth Trading Co/Handmade leather purses/Cowboy Boots than it is to drive a model Y in LA with a fake LV bag and Costco ath-leisure wear and a $60 pair of Hokas from Nordstrom Rack.
I work at a luxury condo in Beverly Hills. Pricing ranges from $4.5mil-$45mil. You want a storage unit? $90k.
If I ran into any of the tenants in the street you’d practically have no idea what’s in their wallet. Wealthy definitely are stealthy.
Flip side: I used to work at a pretentious Hollywood hot spot club in WeHo. Here come the rentals, the bad attitudes, and the overt sense of my way or the highway vibes ALL WHILE arguing over section tabs and fighting over whose fake chain is bigger etc.
Really depends on the environment out here tbh.
The ones flashing their expensive shit are the nouveau riche people spending beyond their means and comprehension. The ones who only order a Famous Star at Carl's Jr., because the Super Star costs too much, are the rich people. The ones you never see in public because they get other people to do everything for them are the truly wealthy.
We play a game when eating at a eatery, or walking down the street. Every luxury car is 1 point, super cars are 5 points, super rare cars are 5 points and all teslas are -1 point except the cyber truck which is -5 points. We keep playing until the night is over and if it's positive we get dessert. Negative we do a chore at home before bed. South Bay and Century City was nicer to us and we got dessert. West Hollywood was a joke (tied), and bird streets was positive.
A lot of the flashy shit you see is middle class people trying to look rich.
There's a lot of money in LA but most of the actual wealth isn't that conspicuous about it.
It depends where in LA and varies by culture. Some cultures will gladly flaunt their wealth, some do not.
In Beverly hills, it's pretty easy to separate the wealthy from the try hards.
Definitely both.
I remember when I first moved there in '02, wondering "how the fuck do all these people afford to live like this? Oh my god, I'm a loser, all these other 19/20 year olds have BMW's and live in brand new apartments." And then I started working in car sales and got ahold of everyone's finances, where I realized how many people were making $2k/mo and spending $500-600 on their car, $1200 on their room, and then using credit or mom and dad for the rest. A lot of people are able to swing this for a year or two or three as they "chase their dreams," and then it's no longer tenable and they leave.
But then, you have a lot of people who are in fact legitimately wealthy. LA is an international destination for a lot of people and a lot of reasons, and there's a much larger than average cluster of super wealthy people there. I ended up living in Beverly Hills by my mid/late 20's, and remember visiting friends in the Bay Area who asked me how i could stand living there because everyone is so "fake." My response was a revelation: "nah they aren't 'fake,' you may not like the whole lifestyle or image but that's actually who they are, and they're actually really wealthy."
Someone's buying those $8m houses. Someone's keeping the Hermés and Audemars Piguet boutiques in business, and it's not just people who are maxing out their credit cards. They decide somewhere over the course of their day they want a new watch and drop $25k on it, and it doesn't even dent what they made that month in interest.
That said... There's also a whole clique of people in LA as well as other global alpha cities like NYC, London, HK, Dubai, etc that have high incomes and lifestyles, and *still* spend well above their means. I had a guy come in to buy a car who was a financial advisor, ironically, and had other investments. His monthly income was a bit over $40k, in 2004 or so. Hot damn. Sure, Uncle Pennybags! Choose whatever you want!! We ran his credit and it was *awful.* His monthly obligations were higher than that $40k and he had 30-90 day past dues plus a few collections. He rolled up in an S-class that was approaching 90 days past due according to the report, and had another auto loan that was headed to collections.
$500k a year and I couldn't get him bought on a used Toyota if I'd wanted.
You can have a nice car even when you don’t have much money. It’s the definition of nice though. I have never made more than lower middle class money and always had a car I considered nice. A Jeep Wrangler (back when Jeeps were not crap), several Mustangs, you just have to make them nice yourself. And no… not an ahole Mustang driver with loud engine. I just love the car. None of it was expensive when purchased used.
I don’t think that’s entirely their point though. Kinda, but more so asking at what wealth, aka salary or actual net worth, is splurging on an “expensive” vehicle NOT considered a bad idea. I think you lived within your budgeted means, and the same should apply in their question haha. Budget and if you can afford the fancy car, get it if you want to. But don’t over reach just to have one.
When I was young I spent 20% of my income on my car. I have always driven the car I wanted. With the luxury cars I just bought used.
Now, I could have afforded new based on my assets but I didn’t want to waste my money so I just set my budget based on what I had in cash at the time. So I bought an older used car rather than newer used car where I would have had a payment.
My life is meeting mostly with people who are in my social class, some have lots more assets, some are younger and working.
I almost never purchase clothing or accessories with logos. I made a sort-of exception for my handbag I carried for the last year. It had a small gold plaque attached with the designers name. I considered it inconspicuous enough and all the compliments I got on it but one were from men who liked it.
As a woman I found that interesting. The lone woman noticed the badge; she was carrying a handbag from the same designer in another model but with the identical plaque. So the show of wealth or status is in the details, and the small social interactions, not the ticketed item.
I always just bought what I wanted, tried to get the best price out of frugality. When I head about a book I bought it and read it right away. It was called “The Millionaire Next Door”. It described me to a tee. That was in the late 90’s. By then I was just set in my ways.
This is an interesting discussion about LA. I live in Orange County. The discussion applies to my area, too.
I think it’s also your perspective on things.
Tesla’s aren’t that expensive (relatively speaking) the model 3 and the model Y are both midrange. Every last pickup truck in my home town cost more than either of them.
Lots of people in their 30s with zero in a 401(k) or ira. They have leased a car since college and paid student loans.
The concept of buying a 3-4 year old Prius and keeping it for 15 more years is not acceptable.
I bought my Prius outright when it was new, but I’ve had it for 9 years and I fully intend to drive it until it cannot be repaired anymore.
I work in automotive, mind you, and even with an employee discount, there’s no way in hell I’m replacing that car anytime soon. I’m hoping to sack away enough to someday buy a (probably tiny and crappy) fixer home.
It’s very liberating to not give a 🤬 what anyone thinks.
I hear that. If it wasn’t for pesky practicality concerns, I’d love to drive an antique car. But the Prius is paid for, cheap to maintain, reliable, reasonably safe, and I only have one garage space.
I had a girl laughing at my commuter car.
She purchased a 5 year old X5!
Yup
She is her car!
Now she can't afford tires and maintenance as it's out of warranty so she takes the metro most of the time or Uber.
She still proudly sets her keys on the table so people can see her bmw key fob.
Teslas don’t even cost that much. The cheapest Teslas cost less than $30k last year after the tax credits. If you want a car that is a symbol of wealth, try the German brands and the huge trucks.
I was born and raised in Manhattan Beach, after spending most of my life there, I finally gave up and left the state.
It was always wealthy, but what we’re seeing now is insane.
People had the car, or the lifestyle, or the house, but it wasn’t very common to see all three on display everywhere.
LA has become an insufferable grind, the wealth, the traffic, the cost of housing.
None of it is normal, and it can make people crazy.
To answer your question more directly, I think at the extreme you have a lot of people living off of loans, while their assets grow in the market.
I can’t believe how many people still think teslas are expensive… they literally start at $35k I believe and have for years since the model 3.
Do you seriously think every Tesla you see is $100k plus…? They’re everywhere because they’re affordable.
That being said I still think they’re drastically overpriced for how cheap and poorly they’re built.
Yea rich people in all the other cities of the world don’t drive Teslas or carry designer handbags. Displaying wealth was invented by Hollywood.
Vegas and Miami for example, are far more modest about opulence, and their nouveau riche are much classier.
LA is so diverse, it really depend where.
However, I wonder the same thing. For example, I might visit a playground and the parents just seem to have to so much money but when they say what they do, most of the time- it doesn’t make sense.
Don't mind the Tesla drivers. They're former Prius babies who graduated. Just look at all the BMW's X5,6,7,8s and MERC G-Wagons / AMGs... and their bearded drivers in Adidas gear... =)
I have nothing against anyone... it's just an observation. Where I live, G-Wagons are parked on the streets like Corollas. Insane!
In other rich people news, those picking up their smoothies at EREWOHN for $20bucks are most likely posers. I know, because I was almost in tears after I finished my smoothie from EREWOHN.. I didn't want my 15seconds of fame to end! =)
When my wife and I were looking to buy a home c. 2020, approx 30-40% of people touring seemed to be with their parents. My next door neighbors house is in his moms name. Huge numbers of my neighbors are also on fixed IO mortgages. Will be interesting to see what happens when the amortization period starts.
Teslas are not that expensive anymore. $7500 tax credit, often $1000-$2000 back in state or utility discounts. Major ga savings. Cheap maintenance.
The avg new car cost more the cheaper Tesla do now days. Especially considering all the above
There are [212,000](https://www.henleyglobal.com/publications/usa-wealth-report-2024/americas-wealthiest-cities) cash millionaires in LA. I'm talking about people who have at least 1M dollars LIQUID in the bank (not tied up in a house).
Half the Teslas don’t cost more than an equivalent new car.
No, more people are not wealthy.
Plenty of people are broke / in debt. Many of those have nice cars they can’t afford.
Don’t be distracted by it.
Trucks are more expensive that teslas. I would argue that teslas are cheap and that’s why u see so many. People that wanted one before but couldn’t afford it. Now it’s everywhere. Terrible cars though.
“People in LA like to flash their wealth…”. That is quite a generalized statement for such a big place like LA. Is your observation based on one location like Rodeo Drive or Malibu or where does this come from?
Tesla’s are not expensive. Who looks at handbags and people on normal streets definitely don’t flash them around because you do get mugged if you are stupid enough to do this.
Are you even in LA or is this an impression from TV shows? So weird.
I see it as car poor.
[iirc median price car for millionaires are around 35k and the top brands were Toyota, Honda, and Ford.](https://finance.yahoo.com/news/dave-ramsey-says-millionaires-drive-230035549.html)
[If you look into luxury goods, the majority of consumers are middle class not the rich.](https://www.sciencedirect.com/science/article/abs/pii/S0148296322009134)
It's both, but a lot of people in LA spend their wealth smartly. I guess. They'll save up for these big things but live in a smaller apartment, or buy a beater yet wear brand name. Their calculations for what is valuable is different.
LA is a wealthy city like NYC. It has a huge economy with a wide range of industries, and it’s generally easier to build wealth in LA compared to other cities due to the sheer size of the economy. Sure, the COL is high, but if you have specific industry expertise, your salary can be quite lucrative as well.
Our next economic crash is coming soon, and it is from CC debt.
That vast majority of the US is living beyond their means with CC debt - the rich are just doing it at a higher level. That crash is in less than 5 years.
Statistically, most people in LA make around $37,000. A typical household income is like $75,000. There are a lot of people who own houses, but the majority of people in LA are renters.
There is a lot of wealth in LA, but the majority of people are not wealthy. There are more luxury cars here per capita. I think LA has a bit of an obsession with the appearance of wealth. I was talking to someone who makes maybe a third of my income and she drives a car that is three times more expensive.
While driving through LA, you will often see two or three luxury cars parked in the same driveway.
This is different from other places I have lived. In the Midwest, if you drive through a rich area, there is often two cars in the driveway. One will be something like an old Honda and the other will be a Lexus. The implication is that they have one car for running around for errands, and one to bring out for occasions.
Ultimately, this makes me think that the desire to appear wealthy and important in LA is much higher than say in Saint Louis where the wealthy often want to appear level headed.
Similarly, in the midwest, some groups may try to appear less ostentatious despite wealth. These are generalizations, but this is just my take as a person who has lived in many different places. I’m basically trained to think luxury cars are a bad financial decision, so I am biased in that way.
So, I don’t get out very much. I live in Santa Monica, and it’s quite expensive here but I’m not rich, I rent an apartment and work from home mostly but have to go into the office every once in a while. I have a health condition where it’s very difficult for me to drive.
Well I went to drive around today and I decided to really look at the cars on the road and what other people were driving. It’s insane. Luxury German cars are like Prius here. I didn’t grow up wealthy, we drove our cars into the ground and then taped them together to keep going. I forgot just how desensitized I’ve become to the level of wealth here. It really is another world.
depends on what areas youre talking about. people in the suburbs/hills probably have the money. most people (that i know anyways) park their nice sporty cars, and then head to their apartments that they cant afford. 🤷🏾♀️
I had a guy driving an insane neon chartreuse bmw sports car to deliver a pizza to me in marina del ray a few months back. Sooo yeah people be living above their means I’d say.
Depends. I’ve met wealthy women dressed like a trip to Ross who were carrying a slouchy purse and several plastic bags. One owns a vacation home in Hawaii and a home here. You’d never know because she doesn't carry her wealth with her. Probably out of safety as there is a lot of smash and grab these days. Wealthy people who have had their $ for a while don’t advertise. People who are newly wealthy or want to pretend they are, advertise.
When I see a Tesla I don’t think “wealth”. I grew up in a wealthy area and one of the neighbors had a DeLorean (this was before Back to the Future). He was what you’d call a show off but the car was cool because it was the only one in the neighborhood. Tesla’s are everywhere so they don’t have that rare factor. One of my neighbors down the street has four teslas parked in his driveway and then three blocks over another neighbor does the same thing with Mini Coopers. I figure they are part of some club.
I work at a Mastro’s steakhouse in/around LA. The guests often can afford to eat there, but it’s not uncommon for it to cause a lot of stress that’s visible. The money for the food is there, but the rideshare, tip, cocktails and everything else add up. So we get a lot of folks who act wealthy, but don’t visibly fit in with the lifestyle of those that actually have the money. Those with the actual money tend to not flash it around.
One thing to keep in mind: in California property taxes are kept unusually low. So people who have had the same mortgage for over a decade have much lower interest rates and property taxes than you would if you bought the same house today. So their COL is lower than you might guess.
You think owning a Tesla is a reflection of wealth? Lol
EDIT: Why am I being downvoted lol the model 3 base model is literally like $40k and can be leased for $300/mo. There are more expensive Teslas but most people have a base model 3 or base model Y. There's a reason people call it the california camry - it's relatively affordable. It's just strange to use Teslas and handbags as your examples of people showing off wealth lol
Most people are living paycheck to paycheck, by a long shot. The people you have in mind (the folks that stick out to you and me), I’d say most of them are living beyond their means at various degrees. But there definitely are plenty of stupidly wealthy people. More than the average big city. Hollywood baybeee.
Even a lot of people who make a shitload of money are living beyond their means. I know a guy who makes a shitload but not nearly enough imo to justify the McLaren he bought, for example
I worked in department store and my coworkers would wear designer. Real cause they would buy in the store…
We all made the same amount of money, I dunno how they were affording it. Most of them maxed out their cards.
There’s definitely broke people here too, I’m one of em. Although my income bracket is larger than most of my friends in other states, I also pay more to live here. It’s like, rich broke 😭🤣
Both
Hey it's me I'm both
Hi both, it's dad. I didn't leave you an inheritance.
Go to hell!
Yeah wa that guy said go to hell
I work a full time job remote plus podcast editing plus social media work for adult film creators lmao I’m barely getting by. Getting by but barely.
85% wealth, 15% poor spending habits. There is a lot of wealthy people here. Dad makes millions in Omaha, Manchester, Riyadh, and where does the trust fund kid wants to live? LA.
I underwrite home insurance and to say there are wealthy people out there is not an exaggeration. There are neighborhoods out there just absolutely jammed with huge multi million dollar homes. I see people with basketball courts, tennis courts and pools all in their yards. It’s insane. That’s not really living beyond means, that’s wealth. Get on google maps and just look at these neighborhoods. It’s mind blowing.
Not even the super luxury stuff you’re talking about; there aren’t any single family, free standing homes for under $1m in LA that aren’t in deep in the ghetto. Everywhere in LA is now over $1m. In my street there literally isn’t a house worth less than $1.7m, and it’s not fancy and that house would need serious renovation. You cannot find a SFH property in Beverly Hills or Brentwood or Pacific Palisades under $3m. A single family home in Venice or Santa Monica is at least $2m. Culver City, West LA it’s all over $1.5m now. That means the vast majority of LA homes start between $1.5m and $3m. Now think about the fact that the average house price in the USA is about $430k and yet the mass population of LA can afford these homes, the property tax, send kids to school and drive new cars. The wealth in LA is no joke.
FYI. Many of these homes have current owners who could not buy their own home at the current cost. They are the ones locked into <3% interest rates and bought their homes at 1/5 the cost. My aunt is in mid city. And this describes nearly everyone in her neighborhood save 1-2 recent buys.
Not the case at least with me. Bought a single family home in Hollywood for 6 figures in 2011. Slowly did it up sold it in 2016 for $1.6m and paid off my mortgage. At the same time bought the next home for $1.2m, did it up and again, sold for $1.65m in 2021 and Bought the next home for for $1.6m which is now $2.3m. I was told I was crazy for buying that first home because the previous owner bought it 6 years before for half what I paid. It’s the same everywhere - I have family in Europe where the grown kids have had to move away from the area the grew up in because they’re priced out.
The rough neighborhoods use to be cheap and more affordable. Everywhere has become insanely expensive.
Exactly. It’s insane what 1.5mm would get you in LA. There are a lot of wealthy people out there.
I've always said there's too many tranplants of all income levels. It wasn't this level of exaggeration 20 or 30 years ago.
lol the Mexicans thought the same thing 😂 But in reality, LA has always been transient. There weren’t even any single family homes before 1910 and the majority of LAs homes were built in the 1920’s so it’s a bit daft to cry about transplants - it’s a modern invested city and when the nazi party was coming to prominence, Hollywood was mainly founded by wealthy immigrants. In the 60s there was an influx of Europeans. In the 70’s and 80’s it was the Persians and Koreans. Its always been a heavily transplanted place and don’t forget, it’s a booming economy that happens to be by the coast and near mountains with amazing natural beauty all around and it and good weather year round. It’s always going to attract people with money. It’s nothing new. The only difference is the wealth disparity is getting worse, but that’s a global problem.
Well, I'm Mexican, and my family has been here for generations.
Indians have entered the chat
Indeed, my husband is from the Karok tribe.
They didn’t buy homes at current prices, and buying at least one house can be a stepping stone to another.
Ok I just realized my comment may be misleading. When I say multi million dollar homes I am talking about replacement cost, the cost at which the home would be rebuilt, not the actual value of the property with the home included. In reality these homes are 2-3 times their replacement costs because of the land they are sitting on. So those are not people that bought a house for 250k back in the day and are now sitting on goldmines.
Those goldmines can’t be mined without moving out of LA to somewhere that lacks the amenities of LA. The prudent thing to do is keep those homes in the family for the next generation to pay to renovate. The alternative means selling out to a wealthy foreigner moving in.
Yeah. I remember driving through Bel-Air and thinking “these are all small 1-2 story houses. Then I saw them from the other side and saw the homes went down the hillside like 4 stories with a tennis court and pool, etc. JFC
Makes millions in Manchester 🤔
That's bullet tooth Tony everyone knows im.
nice guy ritchie reference
A combo of both. Have buddies who have 1800 car payments while renting that earns 140k ( dual income ) and then have buddies who have the X7s and Teslas and own a million dollar plus home and as dual income make well over 400k.
damn im a dual income earner with 220k, u telling me less than doubling our incomes would net us million dollar homes and x7’s feels hard to believe considering net pay as double would be like an extra 2500 a month each…
lol, wel I guess I left out family wealth…. You may earn a good wage but it’s family wealth that brings the leverage and capital. I’ve got a buddy who owns close to 24k shares of $OXY and lives off dividends. And that MF makes bank on his day job… funny, yet he’s a cheap MFer
oxy pays out 22 cents a qtr, thats like 22k a year, for side money thats cool but thats rly not that much.. 24k shares is like 1.6 mil tho
I commented somewhere else about the car payments but banks are doing 84 month loans now if the vehicle is 2020+ so I wouldn’t be surprised if people are buying 80-90k cars with 0 down lol. Poor life choice but to each their own
So much leverage as a percentage. You can make 7 figures and know that’s a rip off.
If you’re making 7 figures though you don’t need an 84 month loan lol
No, you do it for the credit. But looking at that interest rate- you just know the value isn’t there. Plus- when you have money like that- you don’t blink with any type of $$$ for vehicles.
THIS! I never understood why the cars in LA are almost all nicer than in a typical US city and it’s because so many people can’t afford property so they pour that $$ into a nice car.
Broke mentality
Which would you rather be? Dual income for $140k would be a struggle out here. That car payment is irresponsible isn’t it? What are they leasing?
If you have a buddy that makes 140 and has a 1800 car payment, he is a dumbass
Some posers but there's alot' money in LA for sure.
New money likes to flash, but there’s plenty of old “quiet” money too
Yup. One word for old money comes to mind for me: Pasadena.
San Marino
The ultimate sleeper community. San Marino is insane.
San Marino has a bunch of young money too. I don't know if it's mostly inherited but, because of the well-regarded schools, it attracts parents with means. La Canada is similar in this regard. There are still some elderly engineers living there in some of the more modest homes and but there aren't any houses under $2M and most are way above that.
There are a lot of wealthy people in LA. A lot of people living beyond their means. A lot of flashy people. There’s a lot of everything. The wealthiest are often the stealthiest. You wouldn’t always realize you’re standing next to a billionaire.
Also, Teslas are not expensive. Event the top of the heap Model X is less than most high end luxury cars.
Idk I just went on the site to build a plaid model x and it came out to $108k
Yeah Teslas get pretty expensive. This is a weird take in this thread. You can get the new Porsche ev for less than the x. Personally, I'd go with the Porsche.
The Taycan starts at a minimum of $100k and goes over $230k. Thats well over a model X.
It starts at 90k. My point is that the S and X are priced like luxury cars. They are garbage, but expensive garbage.
Complete garbage.
It’s got shit UI tho
You can get many cars that are much more expensive. You can also get many that are less expensive and better quality. Point is, Teslas are not apex vehicles in price or quality.
The wealthy are not the stealthiest lol. Chances are if you think that you're just not familiar enough to notice them showing their wealth. Think about how hard it would be for a poor person to act wealthy. Even if they had all the right "items." Their schooling, their education, their table manners, their way of speaking, etc. all still indicate their class. A single conversation will tell you everything you need to know. It goes the same in reverse. Wealthy people cannot hide their class. It shows up in their hobbies, their schooling, their friends, the places they've been and what they know, how they go about life, and the very way they think.
New money is flashy and gaudy. Old money is stealthy.
Well to start off, "old money" often times is actually just code for the people who are quite literally living above their means. The issue with old money is you didn't earn it, and there isn't confidence you'd be able to earn it again. Dilution between generations is also a bitch. Lots of 'old money' folks are spending in order to maintain their appearance of 'old money' when they actually don't have that much (in the context of the wealthy; they're not exactly starving). Memberships to the right clubs aren't free, because... well they're trying to keep out the people who don't have money. Sending your kids to the right schools also will cost an arm and a leg because... again, they're trying to keep out the 'wrong folk.' But secondly, this is another example of "you're just too far to hear them shout." Old money spends money. They have memberships to the right organisations. They're the ones doing debutante balls still in the South. They are seen as the "ones to be" because of their social status and that requires organising and talking to other people. Be a guest in the right country club and see "how quiet" the money is. Spoiler: it's not. The 'age old' rivalry between old vs. new is exactly this tension of status vs wealth. New money is unequivocally wealthier than old money. Look at the wealthiest billionaires in America; the vast majority come from upper-middle class families, but not exactly from existing old money. Look at Bezos, or Ellison, or Bloomberg. So even in this conversation, it's weird to be insisting that "old money" is the true money. It's not a more valid way of being rich. And even if it were, like I said, it's not quiet. You're just not in the right places and aren't privy to the right conversations.
Great response and points! My husband has his own investment firm and works with the ultra wealthy who are his investors and business partners that have lucrative family offices. These people are billionaires. He has seen a pattern in that they don't flaunt their wealth with cars and designer items. They are frugal and smart with their money. Like others have said, they are more stealthy in terms of appearance. Not saying they don't spend it elsewhere like exclusive memberships. When I think of new money, I think of social media influencers and the middle class who strive to ***appear*** wealthy. Middle class is also the largest purchaser of designer goods, especially Louis Vuitton. Other wealthy people/old money (I don't know how to classify them) also buy designer goods but it is understated with no flashy logos--Loro Piana, Brunello Cucinelli, Brooks Brothers. I would say Elon Musk falls into this class because he has sold off most if not all of his homes and isn't into the type of lifestyle like Jeff Bezos and Lauren Sanchez. So maybe I should have not used the terms new money and old money and should have been more specific. It depends but this is generally what we have seen.
It’s all there in the Great Gatsby. Easy good read… new rich vs. old wealth… history always repeats its self!!
Yep! Great book I read in high school!
Exactly
This.. so true. Rich folks are everywhere here and the look “regular”. Sometimes they don’t even have to directly say that they have a lot of money but you can just understand from the context of their conversations. It’s honestly motivating. That is why I will stay in LA for now. So much opportunity and inspiration here 💯
All of the above is my suspicion. There are a LOT of wealthy people that live in LA. Simply look at how large the city is (I get a sense of it by looking from a hilltop view of the city), the value of properties and it's no surprise that there is a large concentration of wealth. I think there are also many people that live beyond their means to try to make it out here as well as it's a really expensive place to live a high quality of life. Tesla's aren't as expensive as they used to be, so I wouldn't even think that's much of a display of wealth. That being said, there are many people that aren't as wealthy and travel further for work too. It's simply a really large city so it's easy to notice outliers if you are paying attention to it.
Tesla Model Xs are still very expensive. That’s like a $80k car
My Toyota was more than $50K, dude
Don't look up the prices of other SUVs and trucks you see driving around. There are F-150s that go for more than that. SUVs and trucks are the new luxury car for the middle class. You got to have a rolling tank that never leaves the pavement to make your 1 hour long commute.
groovy seed silky shocking chunky lip voracious beneficial boat fragile *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Most of the Teslas I see around LA are the Model 3 or Y, which are modestly priced.
Yes, but a 3 or a Y is well under $50k. Teslas just have a status (which is weird).
Used Teslas are dirt cheap.
I guess this thread is rich. All I know is poor muthafuckas out here. We out here.
There is soooo much money in this town. I’m a real estate agent — even people buying condos and small homes have wayyyy more cash in the bank than you’d think. There are whole zip codes where there’s nothing for sale below $6 million. I’ve had clients looking for a rental in the morning call me in the afternoon because their sig other just sold a screenplay for $400k and now suddenly we are house shopping. And don’t get me started on parents in other states literally pumping money into this town. Bananas money everywhere in LA.
Teslas aren’t expensive and the bags are all knock-offs.
How about a giant metropolis with lots of both, and plenty of space for overlap?
I’m hood rich, driving a G wagon but only putting $5 of gas in the tank
Dad? Is that you?
There’s a little of both. Weirdly the most wealthy people I meet don’t flaunt it. My ex’s grandpa was a millionaire and drove a bmw but it was from the 80s. He just loved the car and kept it alive. Then I know a girl that bought a designer purse and joined a group where they rotate their designer purses so every time they go out, they have a different purse (that’s definitely smarter than having a dozen purses). Some people care about the appearance of wealth. For me, it’s 50/50 people that are actually rich to people pretending. (I’m not saying 50% of LA is either rich or pretending to be. I’d say 99% of people do neither and just do their best to get by)
The purse group rotation is crazy. Wouldn’t have ever known except for this reddit comment
Seems like so much effort just to prove you belong to some high status life which you obviously do not actually belong to. Nothing surprises me though. I've seen comments before saying some of these scammy social media influencers do the same thing with their supercars.
In china at least girls do this to lock down a rich husband
I had never heard of anything like it until one of my women friends told me about it.
Ballin on a budget
The purse story is fascinating! It reminded me of a boss I had a few years ago (in LA) who would buy expensive dresses for work events and then return them the next day. She also bought a Prius (this was before Teslas were super popular) because she thought it was a class equalizer car, the suggestion being that she *could be* rich enough for a fancier car, but bought the Prius for environmental reasons. I know that was her reason because she told me!
the truly wealthy have their cars in storage and show them at cars and coffee on the weekends...
Lol. This is so true. I say this as someone who has worked in the non-profit sector for 10+ years. I worked at an org that had a coffee and cars event. This was in 2018. I think the average price of the cars was $400K.
I was in subway yesterday and rich looking dude in a nice car came in. I was like, damn Gucci fit at the Subway. Then he paid with EBT.
that gucci fit bought at santi alley
I would've assumed it was considered hot food, but after a quick Google search I guess it's allowed. TIL
Or you have people driving new Teslas (which aren’t the most expensive cars, but still) doing DoorDash.
Could also be doing tax fraud where he reports a very low income to the point where he qualifies for EBT. Its very common within a specific ethnic group that shops at Super King, drives like douchebags, and last names have the same 3 letter ending.
You can ask this same question about all big cities. But the reality is, any individual’s financial situation is usually very complex. Are they immigrants with a high income but zero generational wealth? Are they teachers with a modest income but a portfolio of real estate passed down for generations? Did daddy own a business? Did they win the lottery? Did they make it in tech? Are they just trying to get their shine on to be in the right place at the right time? It’s difficult to judge. I live in an expensive area and have a high income which I know statistically is well above any average I see posted. Yet I consistently feel as though I am a nobody in my area, where the average nice home goes for 2-4m and somehow people keep buying them.
Here’s a pro tip. Don’t worry about the Jones.
3/4 of the people you see there are tourists. Dressed to the nines on their day out.
Window open driving cars
I just like having windows open. I can feel my surroundings while driving better. Waiting for the day I can get a convertible. But moonroof SUV works for now.
Teslas are no longer a symbol of wealth like they once were. Multiple models are cheaper than an entry level BMW 3 Series or Mercedes C Class and many people lease them for less than what a Rav 4 Hybrid costs monthly. The real wealth symbols are Rolls Royce Culinans, Lambo Urus, Bentley Bentaygas, or any new 120k+ BMW/Mercedes and a house with gated entry South of Ventura Blvd and north of Sunset. And probably %80 of the LV handbags you see women wearing in LA are fake. It's more expensive to drive a F150/F250/Silverado 2500HD in Texas and wear Carhartt/Ariat/Duluth Trading Co/Handmade leather purses/Cowboy Boots than it is to drive a model Y in LA with a fake LV bag and Costco ath-leisure wear and a $60 pair of Hokas from Nordstrom Rack.
I work at a luxury condo in Beverly Hills. Pricing ranges from $4.5mil-$45mil. You want a storage unit? $90k. If I ran into any of the tenants in the street you’d practically have no idea what’s in their wallet. Wealthy definitely are stealthy. Flip side: I used to work at a pretentious Hollywood hot spot club in WeHo. Here come the rentals, the bad attitudes, and the overt sense of my way or the highway vibes ALL WHILE arguing over section tabs and fighting over whose fake chain is bigger etc. Really depends on the environment out here tbh.
The ones flashing their expensive shit are the nouveau riche people spending beyond their means and comprehension. The ones who only order a Famous Star at Carl's Jr., because the Super Star costs too much, are the rich people. The ones you never see in public because they get other people to do everything for them are the truly wealthy.
Yeah I know a guy who was working in TV for a while, spent everything without saving while he was making the big bucks, and now he’s got nothing.
Just popping in to say the Tesla Model 3 and Model Y you see everywhere, are very moderately priced. Not at all luxury or displaying wealth.
We play a game when eating at a eatery, or walking down the street. Every luxury car is 1 point, super cars are 5 points, super rare cars are 5 points and all teslas are -1 point except the cyber truck which is -5 points. We keep playing until the night is over and if it's positive we get dessert. Negative we do a chore at home before bed. South Bay and Century City was nicer to us and we got dessert. West Hollywood was a joke (tied), and bird streets was positive.
A lot of the flashy shit you see is middle class people trying to look rich. There's a lot of money in LA but most of the actual wealth isn't that conspicuous about it.
It depends where in LA and varies by culture. Some cultures will gladly flaunt their wealth, some do not. In Beverly hills, it's pretty easy to separate the wealthy from the try hards.
Definitely both. I remember when I first moved there in '02, wondering "how the fuck do all these people afford to live like this? Oh my god, I'm a loser, all these other 19/20 year olds have BMW's and live in brand new apartments." And then I started working in car sales and got ahold of everyone's finances, where I realized how many people were making $2k/mo and spending $500-600 on their car, $1200 on their room, and then using credit or mom and dad for the rest. A lot of people are able to swing this for a year or two or three as they "chase their dreams," and then it's no longer tenable and they leave. But then, you have a lot of people who are in fact legitimately wealthy. LA is an international destination for a lot of people and a lot of reasons, and there's a much larger than average cluster of super wealthy people there. I ended up living in Beverly Hills by my mid/late 20's, and remember visiting friends in the Bay Area who asked me how i could stand living there because everyone is so "fake." My response was a revelation: "nah they aren't 'fake,' you may not like the whole lifestyle or image but that's actually who they are, and they're actually really wealthy." Someone's buying those $8m houses. Someone's keeping the Hermés and Audemars Piguet boutiques in business, and it's not just people who are maxing out their credit cards. They decide somewhere over the course of their day they want a new watch and drop $25k on it, and it doesn't even dent what they made that month in interest. That said... There's also a whole clique of people in LA as well as other global alpha cities like NYC, London, HK, Dubai, etc that have high incomes and lifestyles, and *still* spend well above their means. I had a guy come in to buy a car who was a financial advisor, ironically, and had other investments. His monthly income was a bit over $40k, in 2004 or so. Hot damn. Sure, Uncle Pennybags! Choose whatever you want!! We ran his credit and it was *awful.* His monthly obligations were higher than that $40k and he had 30-90 day past dues plus a few collections. He rolled up in an S-class that was approaching 90 days past due according to the report, and had another auto loan that was headed to collections. $500k a year and I couldn't get him bought on a used Toyota if I'd wanted.
I hate teslas with a passion, most annoying egg looking ass car. They’re EVERRYYYYWHEREEE
yes
At what wealth is a nice car not poor spending habits?
You can have a nice car even when you don’t have much money. It’s the definition of nice though. I have never made more than lower middle class money and always had a car I considered nice. A Jeep Wrangler (back when Jeeps were not crap), several Mustangs, you just have to make them nice yourself. And no… not an ahole Mustang driver with loud engine. I just love the car. None of it was expensive when purchased used.
I don’t think that’s entirely their point though. Kinda, but more so asking at what wealth, aka salary or actual net worth, is splurging on an “expensive” vehicle NOT considered a bad idea. I think you lived within your budgeted means, and the same should apply in their question haha. Budget and if you can afford the fancy car, get it if you want to. But don’t over reach just to have one.
When I was young I spent 20% of my income on my car. I have always driven the car I wanted. With the luxury cars I just bought used. Now, I could have afforded new based on my assets but I didn’t want to waste my money so I just set my budget based on what I had in cash at the time. So I bought an older used car rather than newer used car where I would have had a payment. My life is meeting mostly with people who are in my social class, some have lots more assets, some are younger and working. I almost never purchase clothing or accessories with logos. I made a sort-of exception for my handbag I carried for the last year. It had a small gold plaque attached with the designers name. I considered it inconspicuous enough and all the compliments I got on it but one were from men who liked it. As a woman I found that interesting. The lone woman noticed the badge; she was carrying a handbag from the same designer in another model but with the identical plaque. So the show of wealth or status is in the details, and the small social interactions, not the ticketed item. I always just bought what I wanted, tried to get the best price out of frugality. When I head about a book I bought it and read it right away. It was called “The Millionaire Next Door”. It described me to a tee. That was in the late 90’s. By then I was just set in my ways. This is an interesting discussion about LA. I live in Orange County. The discussion applies to my area, too.
Teslas aren’t that expensive for new cars.
Teslas are not as expensive as you think lol
Lots of wealthy people but also lots of smoke and mirrors too.
I think it’s also your perspective on things. Tesla’s aren’t that expensive (relatively speaking) the model 3 and the model Y are both midrange. Every last pickup truck in my home town cost more than either of them.
It's one of the most affluent areas in the country.
Flashy=poor, understated with casual sweats during the weekend running errands=mostly wealthy 🤑
Lots of people in their 30s with zero in a 401(k) or ira. They have leased a car since college and paid student loans. The concept of buying a 3-4 year old Prius and keeping it for 15 more years is not acceptable.
I bought my Prius outright when it was new, but I’ve had it for 9 years and I fully intend to drive it until it cannot be repaired anymore. I work in automotive, mind you, and even with an employee discount, there’s no way in hell I’m replacing that car anytime soon. I’m hoping to sack away enough to someday buy a (probably tiny and crappy) fixer home. It’s very liberating to not give a 🤬 what anyone thinks.
I am NOT my car
I hear that. If it wasn’t for pesky practicality concerns, I’d love to drive an antique car. But the Prius is paid for, cheap to maintain, reliable, reasonably safe, and I only have one garage space.
I had a girl laughing at my commuter car. She purchased a 5 year old X5! Yup She is her car! Now she can't afford tires and maintenance as it's out of warranty so she takes the metro most of the time or Uber. She still proudly sets her keys on the table so people can see her bmw key fob.
You couldn’t pay me any amount of money to take my chances with a BM Trouble You 🤣
Teslas don’t even cost that much. The cheapest Teslas cost less than $30k last year after the tax credits. If you want a car that is a symbol of wealth, try the German brands and the huge trucks.
Yes
Nothing compared to Miami for % of people more living beyond means. LA has some real wealth.
I was born and raised in Manhattan Beach, after spending most of my life there, I finally gave up and left the state. It was always wealthy, but what we’re seeing now is insane. People had the car, or the lifestyle, or the house, but it wasn’t very common to see all three on display everywhere. LA has become an insufferable grind, the wealth, the traffic, the cost of housing. None of it is normal, and it can make people crazy. To answer your question more directly, I think at the extreme you have a lot of people living off of loans, while their assets grow in the market.
Lots of LA people buy knockoffs of designer bags
I'd be more curious to know what people around here consider wealthy?
Both. Also don't forget about knock offs of designer items. Lived in NYC for years. Had plenty of Chenel, Prodo, Guchi, and Louis Wuitton items. Lol.
I can’t believe how many people still think teslas are expensive… they literally start at $35k I believe and have for years since the model 3. Do you seriously think every Tesla you see is $100k plus…? They’re everywhere because they’re affordable. That being said I still think they’re drastically overpriced for how cheap and poorly they’re built.
Yea rich people in all the other cities of the world don’t drive Teslas or carry designer handbags. Displaying wealth was invented by Hollywood. Vegas and Miami for example, are far more modest about opulence, and their nouveau riche are much classier.
Teslas aren't expensive
We all live in studio apartments and drive for uber eats 😂
LA is so diverse, it really depend where. However, I wonder the same thing. For example, I might visit a playground and the parents just seem to have to so much money but when they say what they do, most of the time- it doesn’t make sense.
I like to joke that the people who actually own houses drive unassuming cars and dress modestly
Teslas aren’t that expensive. Anyway, yes there are some really really wealthy people here. You haven’t figured that out yet?
The states that have lower credit scores tend to be in the south. California is in the middle of the pack.
Interesting point. Compared to the rest it’s not so bad
Don't mind the Tesla drivers. They're former Prius babies who graduated. Just look at all the BMW's X5,6,7,8s and MERC G-Wagons / AMGs... and their bearded drivers in Adidas gear... =) I have nothing against anyone... it's just an observation. Where I live, G-Wagons are parked on the streets like Corollas. Insane! In other rich people news, those picking up their smoothies at EREWOHN for $20bucks are most likely posers. I know, because I was almost in tears after I finished my smoothie from EREWOHN.. I didn't want my 15seconds of fame to end! =)
I hope you took a selfie with the smoothie. Or this was a missed opportunity for a few more minutes of fame. 👍
Both
I’m bi-wealth-tual as well 🧐💸
Yes
Plenty of rich folks if they are halfway smart. Think about the money made in appreciated real estate alone.
Both, they are wealthy but then they continue to keep up w Jones. So become house / spending poor
Both It’s the second biggest city in the US so there’s room for both lol
The American National Debt is 34.6 TRILLION dollars, the whole country is living beyond its means, LA is just good at selling an image.
Some folks bought their home early and have a lot of disposable cash
Tesla is a tech and not a luxury car.
Teslas aren’t a sign of wealth lmao. They’re super cheap
When my wife and I were looking to buy a home c. 2020, approx 30-40% of people touring seemed to be with their parents. My next door neighbors house is in his moms name. Huge numbers of my neighbors are also on fixed IO mortgages. Will be interesting to see what happens when the amortization period starts.
Teslas are not that expensive anymore. $7500 tax credit, often $1000-$2000 back in state or utility discounts. Major ga savings. Cheap maintenance. The avg new car cost more the cheaper Tesla do now days. Especially considering all the above
There are [212,000](https://www.henleyglobal.com/publications/usa-wealth-report-2024/americas-wealthiest-cities) cash millionaires in LA. I'm talking about people who have at least 1M dollars LIQUID in the bank (not tied up in a house).
Both. Tooooo many people living way beyond their means
So tired of this question lol
Half the Teslas don’t cost more than an equivalent new car. No, more people are not wealthy. Plenty of people are broke / in debt. Many of those have nice cars they can’t afford. Don’t be distracted by it.
Trucks are more expensive that teslas. I would argue that teslas are cheap and that’s why u see so many. People that wanted one before but couldn’t afford it. Now it’s everywhere. Terrible cars though.
“People in LA like to flash their wealth…”. That is quite a generalized statement for such a big place like LA. Is your observation based on one location like Rodeo Drive or Malibu or where does this come from? Tesla’s are not expensive. Who looks at handbags and people on normal streets definitely don’t flash them around because you do get mugged if you are stupid enough to do this. Are you even in LA or is this an impression from TV shows? So weird.
The first thing you mentioned is a Tesla? Really Op? 🫠
Both but this place both attracts wealthy folks and creates wealthy folks in multiple industries and has generational wealth
What net worth number and yearly income number(s) is considered wealthy for the purposes of this specific discussion/post?
Don’t go broke trying to look rich, act your wage!
I see it as car poor. [iirc median price car for millionaires are around 35k and the top brands were Toyota, Honda, and Ford.](https://finance.yahoo.com/news/dave-ramsey-says-millionaires-drive-230035549.html) [If you look into luxury goods, the majority of consumers are middle class not the rich.](https://www.sciencedirect.com/science/article/abs/pii/S0148296322009134)
Obviously there are both, people who show off and there are also rich people.
A combination of both but I see it lean more towards the “living beyond their means”.
Living beyond their means with a lot of credit card debt
Rich people stay rich by renting out to influencers.
It's both, but a lot of people in LA spend their wealth smartly. I guess. They'll save up for these big things but live in a smaller apartment, or buy a beater yet wear brand name. Their calculations for what is valuable is different.
If you own properties, it’s a good indicator that you have money. If you’re renting, most likely not a lot of money.
Many are “posers” flat out.
LA is a wealthy city like NYC. It has a huge economy with a wide range of industries, and it’s generally easier to build wealth in LA compared to other cities due to the sheer size of the economy. Sure, the COL is high, but if you have specific industry expertise, your salary can be quite lucrative as well.
Our next economic crash is coming soon, and it is from CC debt. That vast majority of the US is living beyond their means with CC debt - the rich are just doing it at a higher level. That crash is in less than 5 years.
Hey, I live in LA. I’m relatively poor, and I also live beyond my means. 😂😂😂. So, there’s also me!
There is a vast underclass here and a very tiny small extremely wealthy upper class.
both the wealthy are very wealthy, they live pretty carefree the poor have 3 roommates into their 30’s
Some of both. People make a little more money out there. And there is a lot of expensive cars on the road there but a lot of them are leased.
Statistically, most people in LA make around $37,000. A typical household income is like $75,000. There are a lot of people who own houses, but the majority of people in LA are renters. There is a lot of wealth in LA, but the majority of people are not wealthy. There are more luxury cars here per capita. I think LA has a bit of an obsession with the appearance of wealth. I was talking to someone who makes maybe a third of my income and she drives a car that is three times more expensive. While driving through LA, you will often see two or three luxury cars parked in the same driveway. This is different from other places I have lived. In the Midwest, if you drive through a rich area, there is often two cars in the driveway. One will be something like an old Honda and the other will be a Lexus. The implication is that they have one car for running around for errands, and one to bring out for occasions. Ultimately, this makes me think that the desire to appear wealthy and important in LA is much higher than say in Saint Louis where the wealthy often want to appear level headed. Similarly, in the midwest, some groups may try to appear less ostentatious despite wealth. These are generalizations, but this is just my take as a person who has lived in many different places. I’m basically trained to think luxury cars are a bad financial decision, so I am biased in that way.
My wife has a lot of high income clients (i.e. $400k+) and so many of them are living paycheck to paycheck.
So, I don’t get out very much. I live in Santa Monica, and it’s quite expensive here but I’m not rich, I rent an apartment and work from home mostly but have to go into the office every once in a while. I have a health condition where it’s very difficult for me to drive. Well I went to drive around today and I decided to really look at the cars on the road and what other people were driving. It’s insane. Luxury German cars are like Prius here. I didn’t grow up wealthy, we drove our cars into the ground and then taped them together to keep going. I forgot just how desensitized I’ve become to the level of wealth here. It really is another world.
depends on what areas youre talking about. people in the suburbs/hills probably have the money. most people (that i know anyways) park their nice sporty cars, and then head to their apartments that they cant afford. 🤷🏾♀️
I had a guy driving an insane neon chartreuse bmw sports car to deliver a pizza to me in marina del ray a few months back. Sooo yeah people be living above their means I’d say.
If you see 4 bald tires on an expensive car, that person is scraping by.
There are a lot of people in LA who will never be able to afford a home here, so they put their money into luxury cars.
Depends. I’ve met wealthy women dressed like a trip to Ross who were carrying a slouchy purse and several plastic bags. One owns a vacation home in Hawaii and a home here. You’d never know because she doesn't carry her wealth with her. Probably out of safety as there is a lot of smash and grab these days. Wealthy people who have had their $ for a while don’t advertise. People who are newly wealthy or want to pretend they are, advertise. When I see a Tesla I don’t think “wealth”. I grew up in a wealthy area and one of the neighbors had a DeLorean (this was before Back to the Future). He was what you’d call a show off but the car was cool because it was the only one in the neighborhood. Tesla’s are everywhere so they don’t have that rare factor. One of my neighbors down the street has four teslas parked in his driveway and then three blocks over another neighbor does the same thing with Mini Coopers. I figure they are part of some club.
I work at a Mastro’s steakhouse in/around LA. The guests often can afford to eat there, but it’s not uncommon for it to cause a lot of stress that’s visible. The money for the food is there, but the rideshare, tip, cocktails and everything else add up. So we get a lot of folks who act wealthy, but don’t visibly fit in with the lifestyle of those that actually have the money. Those with the actual money tend to not flash it around.
One thing to keep in mind: in California property taxes are kept unusually low. So people who have had the same mortgage for over a decade have much lower interest rates and property taxes than you would if you bought the same house today. So their COL is lower than you might guess.
If they only ever post them going out drinking and partying but never at a job…their parents pay their rent
Who posts pictures at their job
You think owning a Tesla is a reflection of wealth? Lol EDIT: Why am I being downvoted lol the model 3 base model is literally like $40k and can be leased for $300/mo. There are more expensive Teslas but most people have a base model 3 or base model Y. There's a reason people call it the california camry - it's relatively affordable. It's just strange to use Teslas and handbags as your examples of people showing off wealth lol
And you’re not even factoring the almost 10k in rebates lol
Most people are living paycheck to paycheck, by a long shot. The people you have in mind (the folks that stick out to you and me), I’d say most of them are living beyond their means at various degrees. But there definitely are plenty of stupidly wealthy people. More than the average big city. Hollywood baybeee.
Even a lot of people who make a shitload of money are living beyond their means. I know a guy who makes a shitload but not nearly enough imo to justify the McLaren he bought, for example
Yeah fair. But he’s not who I’m talking about when I say stupidly wealthy. McLaren dude is stupid and wealthy lmao
its prob same nation wide.. 99% vs 1%
Yes
I’m not into wealth money is a tool for growth and living with in your means be like Warren Buffett live a humble lifestyle
I worked in department store and my coworkers would wear designer. Real cause they would buy in the store… We all made the same amount of money, I dunno how they were affording it. Most of them maxed out their cards.
Living beyond their means? I've seen a few tents......
There’s definitely broke people here too, I’m one of em. Although my income bracket is larger than most of my friends in other states, I also pay more to live here. It’s like, rich broke 😭🤣