California’s population is growing faster than builders can add housing, driving up rents. Incomes, meanwhile, aren’t keeping up. As a result, it takes three full-time minimum-wage incomes to afford a two-bedroom apartment. Here’s how rising rents are affecting the state and, in particular, Southern California.
Rising rent
Los Angeles County apartment rents increased almost $500 a month, or 34 percent, in the last seven years, Reis Inc. figures show. In Orange County, rents increased $355 a month, while in the Inland Empire they’re up $266 a month. More than half of Southern California’s tenants are “rent burdened,” meaning they spend at least a third of their income on rent, U.S. Census figures show.
Minimum wage and renting
A Californian working for minimum wage ($10.50/hour*) would need to work 92 hours to afford a 1 bedroom rental at Fair Market Rent without paying 30 percent of income. The state map shows the National Low Income Housing Coalition county by county calculations.
*Starting in January, minimum wage is $11/hour for businesses with more than 25 employees. Charts are calculated for $10.50/hour.
Only 12 counties spread across Washington, Oregon and Arizona had wages high enough and housing costs low enough for a minimum-wage worker to afford housing at 30 percent of their income and only work 40 hours.
You can see the 2017 report from the National Low Income Housing Coalition here.
There are an estimated 6 million renters in California which is about 46 percent of the households.
Rise and fall
Inflation-adjusted median rent and median renter income from 2000 to 2015.
Orange County: +28 percent rent, -9 percent income
Riverside County: +32 percent rent, -3 percent income
Los Angeles County, +32 percent rent, -3 percent income
California compared
California has the fourth-highest hourly total needed for a minimum wage worker to afford a one-bedroom rental without paying more than 30 percent of their income.
1. Hawaii, 116 hours
2. Virginia, 109 hours
3. New York, 101 hours
4. California, 92 hours
California has second highest hourly wage needed for a householder working a 40-hour week to afford a two-bedroom rental.
1. Hawaii, $35.20
2. California, $30.92
3. Maryland, $28.27
4. New York, $28.08
