Crazy Hourly Wage Needed To Afford Average CA 2-Bed Apartment

CALIFORNIA — California is the most expensive state in the U.S. for renters, according to a new report, which details how finding an affordable rental home remains out of reach for many low-income workers in the state.

In fact, a minimum wage employee would need to work nearly three full-time jobs just to afford a modest, two-bedroom home in California.

Out Of Reach, a report released by the National Low Income Housing Coalition, looked at data to determine the discrepancy between wages in California and what residents actually need to earn to afford a rental home in the state.

The results are grim. At California's current minimum wage of $16 per hour, some of the state's more than 5.9 million renters would need to work 118 hours per week — or almost three full-time jobs — to afford a two-bedroom rental home at the current fair market rate of $2,464.

"This year’s report confirms what housing advocates have known for years: We cannot accept
our housing crisis as 'normal,'" the report states. "Instead, we must build a nation where everyone has a quality, accessible home they can afford in a thriving, healthy community."

To afford a modest, two-bedroom apartment at fair market rent in California, full-time workers need to earn $47.38 per hour, the report found. This is assuming the person spends no more than 30 percent of their income on rent.

Many do not earn that much. According to the report, the average renter in California earns $30.93 per hour.

Some parts of the state are worse than others. In the Santa Cruz area, the fair market rate for a two-bedroom rental home is $4,054. For a minimum wage employee to afford that, they would have to work 4.9 full-time jobs.

Here's a list by metropolitan area that includes the average cost of a two-bedroom rental home, the hourly wage required to afford it and how many jobs a person would have to work if they were making minimum wage:

Los Angeles-Long Beach-Glendale

• Cost of two-bedroom rental: $2,544
• Wage: $48.92
• Jobs: 3.1

Riverside-San Bernardino-Ontario

• Cost of two-bedroom rental: $2,010
• Wage: $38.65
• Jobs: 2.4

Sacramento-Roseville-Arden-Arcade

• Cost of two-bedroom rental: $2,072
• Wage: $39.85
• Jobs: 2.5

San Diego-Carlsbad

• Cost of two-bedroom rental: $2,833
• Wage: $54.48
• Jobs: 3.4

San Francisco

• Cost of two-bedroom rental: $3,359
• Wage: $64.60
• Jobs: 4

In conclusion, the authors of the report called on lawmakers to address affordable housing by "prioritizing long-term solutions" including rental assistance vouchers for low-income families.

"Congress must also invest in solutions to expand and preserve the supply of affordable housing by passing the Housing Crisis Response Act of 2023 and reduce the power imbalance between landlords and tenants by enacting federal renter protections," the report states.

View the full California report online.