Employers in Southern California are struggling with luring the best and brightest workers to the area in part because of high housing costs.
According to Business Insider, a new report from the University of Southern California and the Los Angeles Business Council found that majority of the employers said that the high cost of living in L.A. negatively affects employee retention, and three-quarters of respondents said that housing costs were a specific concern. Ten of the 14 employers surveyed said that expensive housing is a “barrier” to hiring new mid- and upper-level employees.
In Los Angeles, the median home value is $616,900 and the median rent is about $2,860, which are considerably higher than the national median home value ($195,700) and rent ($1,500).
Companies such as Boeing and SpaceX have either moved or opened new facilities out of state in an effort to attract talent.
"It's concerning that high housing costs could lead to Los Angeles losing its competitive edge in recruiting top talent. That would be devastating to our economy," Mary Leslie, president of the Los Angeles Business Council, said.
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