There’s a widespread belief that living in Los Angeles comes with a hefty price tag. Rent can be brutal, and home prices often start over a million dollars. Tourists also seem to brace themselves to spend a bit more as soon as they touch down at LAX.
However, some economists argue that not everything about LA’s cost of living is as high as many think.
In fact, certain everyday items can be cheaper than in other parts of the country.
You know, like tacos.
Striking up conversations with people at Hollywood & Highland revealed that many guessed tacos there would cost around $10 to $15.
But, as it turns out, the actual price is even lower.
For example, at Leo’s Taco Truck, you can snag a carne asada taco for just $2.55.
“In a highly competitive and cutthroat environment, prices tend to drop,” noted Matthew Kahn, who teaches economics and spatial sciences at USC.
Kahn pointed out that Los Angeles enjoys a level of competition and diversity which many smaller cities might lack.
“Food trucks near the University of Southern California offer a range of options,” Kahn mentioned. “Since food trucks face lower rent, they can keep prices down.”
This trend extends to agricultural products, too.
California leads the way in agriculture, producing nearly 60% of the nation’s fruits and vegetables, according to James Thayer, an assistant professor at UC Davis.
“Delivering that produce to consumers in Los Angeles is much cheaper than getting it to those in the Northeast,” Thayer explained.
This difference matters because grocery stores operate on slim profit margins.
“Retailers can’t absorb high shipping costs easily,” Thayer added. “Those costs inevitably fall on the consumer.”
Shopping at farmers’ markets can offer even better deals, as customers bypass supermarket fees and buy straight from the producers.
If you’re intrigued, there’s a podcast episode titled “Everything They Say About L.A. is a Lie” where this topic is explored further.
