6-figure income needed to afford rent in these California cities, study reveals

Average income needed to own a home in America

A household needs to earn almost $108,000 to afford a new single-family home, according to a new report.

Affordability has become a growing problem for a number of renters across California and nationwide, according to Zillow. 

The real-estate marketplace company said today renters need to make more than $80,000 to comfortably rent homes. That number is up from $60,000 just five years ago.

RELATED: Rent remains high across the U.S. despite months of declines, study finds

Researchers at Zillow found in eight major metropolitan areas, including five in California, renters need to make six figures to afford rent.

By the numbers:

Zillow said since April 2020, rent for a typical U.S. apartment has gone up by 28.7%, to $1,858. Rent for a single-family home increased by 42.9%, to $2,256. 

However, over the years, the median household income has only risen by 22.5% to about $82,000.

In addition, the number of cities where renters need to earn $100K to afford rent has doubled since 2020.

What they're saying:

"Housing costs have surged since pre-pandemic, with rents growing quite a bit faster than wages," said Orphe Divounguy, senior economist at Zillow, said in a press release. "This often leaves little room for other expenses, making it particularly difficult for those hoping to save for a down payment on a future home. High upfront costs are often overlooked, which can keep renters in their current homes."

RELATED: US cities with the most affordable rent in 2025

Cities where rent is getting more expensive, affordable 

Dig deeper:

The average U.S. renter spends 29.6% of their income on rent, just under the 30% limit that marks rent as unaffordable. But in cities like San Jose, New York, Boston, San Diego, San Francisco, Los Angeles, Miami, and Riverside, California, renters usually need to make at least $100,000 a year to stay under that limit. Rents in these places are several hundred dollars higher than the national average of $2,024.

The number of markets where renters need to earn $100K to afford rent has doubled since 2020. (Credit: Zillow) 

In six of the eight cities, the average household would spend more than 30% of its income on rent. However, in San Jose and San Francisco, incomes have kept up better with rising rents. In San Jose, the average household spends 25% of its income on rent, and in San Francisco, it's 28%.

Even though rents have increased a lot in the past five years, many places are still affordable for average earners. 

RELATED: This map shows the hourly wage needed to afford rent in California

The most affordable cities are Buffalo (where you need $55K income), Oklahoma City ($56K), and Louisville ($57K). In these cities, renters spend 23% or less of their income on rent, giving them more room to save and build financial stability.

Challenges to affording rent 

High upfront costs make it harder for renters to move, especially in cities like New York and Boston. 

There, renters often have to pay broker fees along with security deposits and one or two months of rent in advance. 

SUGGESTED: This OC home is on the market for nearly half a million dollars - and the internet is losing it

However, things may get easier soon — New York City recently passed the FARE Act, and lawmakers in New York and Massachusetts are also looking at ways to reduce broker fees.