Fremont Residents Need To Earn The Most To Afford Rent In The Country

April 15, 2019

© ANNA REED / Statesman Journal

Categories: 

In a new study, apartmentlist.com examined the affordability of rent for those earning average incomes across 100 American cities & not surprisingly - Bay Area residents won't be happy with the findings. They used the U.S. Department of Housing and Urban Development’s recommended use of 30% of gross income on rent & saw how cost-burdened most are. Their study found that in a quarter of American cities renting a 2-bedroom apartment will be a major cost-burden for those on an average income for the specific area.

Out of the 100 cities studied, Fremont, CA residents need to earn the most in order to rent ($72/hour) a 2-bedroom apartment. The study claims Fremont's proximity to Silicon Valley & its Tesla factory as the reason for its ranking. They add if you thought it was bad for renting a 2-bedroom in Fremont - it's the only city in America where a six-figure salary is necessary in order to rent a 1-bedroom and not feel a cost-burden.

#'s for 2-bedrooms:

  • Fremont: 
    • Median rent price: $3,731
    • Recommended annual gross income: $150k
    • Recommended hourly wage: $72
  • San Francisco:
    • Median rent price: $3,100
    • Recommended annual gross income: $123k
    • Recommended hourly wage: $59
  •  San Jose:
    • Median rent price: $2,627
    • Recommended annual gross income: $104,880
    • Recommended hourly wage: $50

Now here's a breakdown of the annual salary needed in order to afford to rent a 1-bedroom apartment:

Seem like that's ridiculous? Yeah, because it is. The actual incomes made in Fremont and San Francisco are far less than the "recommended annual gross income" so residents of those cities are feeling an exceptional cost-burden in 2019. To calculate recommended income they used guidelines outlined by The U.S. Department of Housing and Urban Development

Want to move to a more affordable city? Per the study you might want to try Stockton, CA, Spokane, Washington, or Tampa, FL.

For more head to apartmentlist.com.