Here’s how much you need to earn to rent or buy a home in San Jose – NBC Bay Area
New figures show how much it takes to rent or buy a home in the South Bay.
The city of San Jose now estimates that a wage of $54 an hour is needed to rent an average two-bedroom apartment in the city. And what about owning a home? The city estimates a person needs to make $123 an hour to buy an average home in San Jose.
“I wish I could afford something here – I love the Bay Area,” said San Jose resident Audrey Atkins. “I don’t make $54 an hour, so I can’t afford to pay rent. I can’t afford to buy a house.”
Atkins is not alone.
Many people are caving in to the rising price of just about everything – from food and rent to gasoline and the housing shortage in the Bay Area.
Jeff Andrews is a senior market analyst at Zumper who tracks rental prices for the company. He said the traditional wisdom of not spending more than 30% of your income on rent no longer applies here.
“The number of people who are badly burdened with rent or at all burdened with rent, that’s an all-time high, especially after 2021,” Andrews said.
Another result of this? The number of permits for accessory living units – sometimes called grandmother units – has recently increased in San Jose. The city said the number of ADU permit applications has more than doubled in the past two years.