People take on roommates, live with extended family or roommates longer than they would in other parts of the US, live in neighborhoods they wouldn't have considered years ago. They may keep their car longer or not have a car and rely on public transit and an occasional uber.
People in tech, entertainment, investment management/finance, aerospace & defense, and international trade tend to make high incomes and there are a ton of those jobs in LA. People in fast food or retail don't really make any more than the rest of the US and there are a lot of those people too.
Every year, LA and CA in general lose lower income folks to other US states, while higher income people move in either from other cities like New York or from other countries. To people from some of these places like Sydney, London, NYC, & Tokyo; Los Angeles is still cheap.
People complain about housing prices and about transplants who they often blame for pushing up prices just like they do just about everywhere else.
None of this should be news to someone from Brooklyn, where prices are just as high and have increased a ton in the last 20 years. Are people there spiritual?