The median-income earning household in Los Angeles would need to earn 25% more to afford the median rent in the city, according to a new report from Apartment List. The median household income in Los Angeles is $56,245 and would need $13,835 or $70,080 more to avoid becoming cost-burdened by rent for the average two bedroom. These numbers place the hourly wage to afford a two-bedroom apartment at $34 per hour.

There are a variety of factors impacting rents in Los Angeles, but the primary issue is an imbalance between supply and demand. “The good news is that all cities with a high quality of life are going to have high rents relative to wages, and L.A. continues to be a great place to live,” Igor Popov, chief economist at Apartment List, tells GlobeSt.com. “The bad news is that a lack of dense construction may be keeping prices artificially high, so that housing supply isn't rising to meet demand. Both lead to high rents.”

In addition to rising demand and a shortage of housing and new construction, there is also a lack of single-family housing development in Los Angeles. That is keeping people in rental units longer than before. “A lack of dense housing development is one factor, but single-family home construction has also been lagging since the financial crisis,” says Popov. “Moreover, on the demand side, more high-earning households are choosing to rent instead of own, putting more upward pressure on rents.”