Today, rental prices are at a level that is almost unsustainable for a single person. For this reason, most residents, especially in large cities, choose to share an apartment, either with their partners, family members, coworkers, or friends. According to the National Low Income Housing Coalition’s Out of Reach study, Santa Cruz has positioned itself as the most expensive location in the state of California to purchase a home.
To afford this level of rent and utilities a household must earn $8,599 per month
The data recorded is truly alarming. In California, the Fair Market Rent (FMR) for a two-bedroom apartment is $2,580. To afford this level of rent and utilities, without paying more than 30% of their income on housing, a household must earn $8,599 per month or $103,184 per year, the study details. The rental price represents a 0.6% increase compared to 2024 and is 59% above the national average, which stands at $1,637.
Therefore, according to estimates, to live comfortably spending 30% of their income on rent, a household in Santa Cruz would need to earn $168,000 a year, a figure that leaves many residents priced out of the market. But it’s not the only city where you have to have a large income to be able to rent on your own.
Similarly expensive communities, namely San Jose, San Francisco, Salinas, and Santa Barbara
The housing crisis in Santa Cruz reflects a broader problem affecting many other cities in California and the United States. This area is also home to similarly expensive communities, namely San Jose, San Francisco, Salinas, and Santa Barbara. The lack of supply, combined with increasing regulations and a shortage of affordable housing, creates an unsustainable situation for low- and middle-income workers.
And Santa Cruz, located about 75 miles south of San Francisco, remains the most inaccessible rental market in the United States. The city is known for its beaches, bohemian atmosphere, and proximity to Silicon Valley. Well, and now also for its exorbitant rents. Living in California is, clearly, an expensive decision.
It takes $49.61 per hour to afford a two-bedroom apartment in the state of California
With this data, if we do the math, and according to the study, it takes $49.61 per hour to afford a two-bedroom apartment in the state of California. That is, with a state minimum wage of $16.50, it means a person would have to work 98 hours a week just to afford a one-bedroom apartment in this part of the country. Then we have to add the cost of transportation and food, taking into account the skyrocketing cost of living.
The situation is so complicated: “It’s not sustainable,” the report says
What these types of studies reveal isn’t just how much it costs to live in one of the most expensive places in the country; they also highlight a deeper problem. “It’s not sustainable. People aren’t choosing to live in Santa Cruz on a whim, but out of a need to be close to jobs, schools, or family,” the report explains.
In NY, for a two-bedroom apartment is $2,394
On the other hand, in New York, where residents also struggle to find affordable rentals, the price difference is minimal. According to the study, in New York, the Fair Market Rent (FMR) for a two-bedroom apartment is $2,394. To afford this level of rent and utilities, without paying more than 30% of their income for housing, a household must earn $7,979 per month or $95,749 per year.
In short, every man for himself. It’s becoming increasingly difficult to make a living in big cities, so it’s no wonder many people are choosing to leave their tiny apartments in the city center and move to the outskirts or even rural areas to improve their lifestyle.
