These Southern California cities require six-figure incomes to afford rent

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California's economy is now ranked the 4th-largest in the world, jumping past Japan, and could jump past Germany. Only the US as a whole and China have largest economies.

LOS ANGELES - Everyone knows it costs a lot to live in Southern California, and when it comes to home or rental prices, things are only getting more expensive. 

A recent report by real-estate marketplace company Zillow found renters need to make more than $80,000 to comfortably rent homes - that's up from $60,000 five years ago.

But in a few Southern California cities, that figure jumps to $100,000.

By the numbers:

Since April 2020, rent for a typical U.S. apartment has increased by 28.7%, to $1,858, while rent for a single-family home increased by 42.9%, to $2,256.

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Over that time, the median household income has only risen by 22.5% to about $82,000 — showing that wages have not kept up with rents.

Expensive Cities For Renters:

According to the study, renters in five California cities need to earn at least six figures to afford rent.

Three are in Southern California:

• Los Angeles: $118,958
• Riverside: $102,722
• San Diego: $122,810

The two others are both in the Bay Area. Renters need to earn $124,267 in San Francisco, and $136,532 in San Jose. 

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In comparison, the nationwide average is $80,000 - up from $60,000 just five years ago.

New York City ranked the most expensive rental market in America. There, people need to earn at least $144,960 to afford rent.

Rents in the most expensive areas are typically several hundred dollars higher than the national average of $2,024, according to the data.

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

Affordable Cities:

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

The most affordable cities are Buffalo (where you need $55K income), Oklahoma City ($56K), and Louisville ($57K). 

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In these cities, renters spend 23% or less of their income on rent, giving them more room to save and build financial stability.

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."