Angelenos have guardian angels on their side, with Los Angeles city rents slipping in the last quarter — but they’ll still need to say a prayer to afford them.

A new report from Realtor.com shows the median asking rent for homes listed on the company’s portal lowered to $2,682 in the first quarter of 2026 — a 3.5%, or $96, annual decline. While that’s welcome news for city residents looking to save a few bucks, it still requires a substantial income to afford living there.

The report adds that, in order to afford the typical LA residence, renters need an annual income of $107,280. That’s 20% higher than LA’s estimated median household income of $88,730.

Of course, it’s no wonder Californians overall have left the Golden State in droves — especially for more affordable states, such as Texas. New research from the University of California’s California Policy Lab shows those who have moved away from California are poorer residents who find it hard to keep quality of life in an increasingly unaffordable state. And by leaving, they found themselves in better circumstances.

That doesn’t mean the city of Los Angeles hasn’t acted. In December, the city enacted its most significant rent control reform in 40 years, which will take effect in July. That measure, the Rent Stabilization Ordinance, will cap annual rent increase on some 650,000 stabilized dwellings at no more than 4%. That’s down from the previous cap of 8%, and will cover about 74% of all LA rental homes.

Though that’s beneficial for Angelenos in stabilized units, a reduction in moving can create ripple effects through the city, the report adds. If tenants stay in place longer, that shrinks the supply of units for new renters, creating a scarcity. Not only could that send prices up, but it could also fuel bidding wars over a small sum of units.

Still, some of LA’s most prime pockets saw rent reductions. Beverly Hills went down by 9.3%, Malibu by 3.6% and Santa Monica by 2.6%. Transit-connected, and more walkable, hubs saw gains or held firm. Those include Long Beach, which saw a 2.4% gain, and Culver City, which stayed largely steady at 0.2%.

Overall, Los Angeles County also saw its median asking rent decline in the first quarter — to $2,520, down 3.7%, or $97, year-over-year. That’s the lowest price recorded since early 2022.

The reason: a surge in new multi-family construction continues to calm prices from rising.

Across Los Angeles County, the pool of renters is largely local. More than 60% of online traffic to county rental listings came from within the county itself — with an additional 18.9% coming from other pockets of the Golden State. Out-of-state house hunters made up 16.6% of traffic.