As you already know, it’s expensive to live in the Bay Area. A new survey found that residents of San Francisco, Oakland and San Jose pay the nation’s highest rents.
Oakland is adding new apartment buildings along the Bayfront and downtown and still the rents continue to rise. “I think it’s a bit of a barrier for people and excludes people,” resident Josh said. “I know a lot of people who won’t move here because of the rent.”
Numbers from the National Low Income Housing Coalition tell the depressing tale. Their report says fair market rent for a 2-bedroom apartment is now more than $2,300 a month – you’d need to make more than $93,000 a year to afford it.
It’s worse in San Francisco, where rent tops $3,100 a month, and you’d need to make close to $125,000 a year to afford it.
In San Jose, it’s $2,500 a month in rent and more than $100,000 in salary to pay it.
“Rents in the San Francisco Bay Area have been high for decades,” said David Stark with the Bay East Association of REALTORS. He says this is an incredibly desirable place to live, with a shortage of housing.
The problem is basic supply-and-demand. “Homes for sale aren’t sitting on the market, apartments aren’t sitting vacant. There are other people who are more than happy to move into an apartment and purchase those homes,” he says.
One man sees it from the other side, as the owner of a San Francisco duplex who rents out one unit. “As a new landlord, it was interesting because I was researching what market rent was and I was, quite frankly, very surprised,” Josh said.
Click here for the full study.