SAN FRANCISCO, Dec. 27, 2017 /PRNewswire/ -- San Francisco
renters had to work overtime in 2017 just to earn enough money to
cover rent, according to a new analysis from HotPads®. This doesn't
include time spent working to pay for other living expenses, like
food and transportation.
In 2017, there were 260 workdays, but the typical San Francisco renter earning the median income
had to work 265 days in order to have enough money to pay rent this
year. The median annual income in San
Francisco is $51,780, while
the median monthly rent is $4,398 per
month, or $52,770 per year. This
means San Francisco renters are
putting more money toward rent than they make in an entire year.
Nationally, 13 percent of renters report living with roommates to
offset these high costs.i
The trend is more pronounced for San
Francisco renters making less than the city's median income.
For example, retail salespeople and baristas would have to work
over 500 days per year in order to afford the median rental in
San Francisco, and teachers would
have to work 354 days. Software developers, on the other hand, work
less than half the average time -- just 112 days -- to earn enough
to pay rent for the year.
"There's only so many hours in a year, and unfortunately, a lot
of San Francisco renters are
spending all of them working so they can afford to live in the
city," said Douglas Pope, co-founder
and general manager of HotPads. "By dedicating so much of their
income to rent, renters don't have much room to afford other living
expenses, let alone save for a rainy day. Renters looking for more
affordable rents may need to migrate further away from the center
of the city or consider doubling up with roommates or family."
Financial experts recommend renters dedicate at most one-third
of their monthly income toward a rental payment, but even renters
who are comfortable spending half their paycheck on rent still have
few options within the city.
Graphic designers who put half their paycheck (median annual
income of $65,210) toward the median
rent can afford to live alone in just three San Francisco neighborhoods: the Outer
Mission, Downtown, and the Tenderloin. San Francisco's software developers, however,
can afford to live solo and pay the median rent in all but three
neighborhoods -- Sea Cliff, Corona Heights and Miraloma Park -- if
they put half their paycheck toward rent.
HotPads is a Zillow Group owned apartment and home search
platform for renters in urban areas across the United States. For more information on
San Francisco's rental market,
visit HotPads.com.
Time Worked for Rent in 2017 by Job Category
Job
Category
|
Median
Annual
Incomeii
|
Hourly
Wageiii
|
Cost of Rent
for the
Entire Yeariv
|
Hours Worked
for Rent in 2017
|
Days
Worked
for Rent in
2017v
|
All
Occupations
|
$51,780
|
$24.89
|
$52,770
|
2,120
|
265
|
Baristasvi
|
$23,650
|
$11.37
|
$52,770
|
4,642
|
581
|
Retail
Salespeople
|
$27,120
|
$13.04
|
$52,770
|
4,048
|
506
|
Teachers
|
$38,800
|
$18.65
|
$52,770
|
2,829
|
354
|
Registered
Nurses
|
$130,330
|
$62.66
|
$52,770
|
843
|
106
|
Software
Developers
|
$123,490
|
$59.37
|
$52,770
|
889
|
112
|
Graphic
Designers
|
$65,210
|
$31.35
|
$52,770
|
1,684
|
211
|
Days Worked for Rent in 2017 by Neighborhood
Job
Category
|
Tenderloin
(Median
Rent:
$2,195)
|
Downtown
(Median
Rent: $2,650)
|
Outer
Mission
(Median
Rent:
$2,700)
|
Sea
Cliff
(Median
Rent:
$5,573)
|
Corona
Heights
(Median
Rent:
$5,195)
|
Miraloma
Park
(Median
Rent: $5,150)
|
All
Occupations
|
133
|
160
|
163
|
336
|
314
|
311
|
Baristas
|
290
|
350
|
357
|
736
|
686
|
680
|
Retail
Salespeople
|
253
|
305
|
311
|
642
|
598
|
593
|
Teachers
|
177
|
214
|
218
|
449
|
418
|
415
|
Registered
Nurses
|
53
|
64
|
65
|
134
|
125
|
124
|
Software
Developers
|
56
|
67
|
69
|
141
|
132
|
131
|
Graphic
Designers
|
106
|
127
|
130
|
267
|
249
|
247
|
HotPads
HotPads is the most efficient rental search platform for urban
areas across the United States,
with features designed for competitive markets such as map-based
search, real-time notifications and detailed information on
landlords and property managers that help renters spend less time
searching and more time feeling excited about their next home.
Launched in 2005, HotPads is based in San Francisco and is owned and operated by
Zillow Group, Inc. (NASDAQ:Z and ZG).
HotPads is a registered trademark of Zillow, Inc.
i Zillow Group Report on Consumer Housing Trends,
2017
ii Incomes in this analysis were determined using
city-level data from the Bureau of Labor Statistics
iii HotPads assumed a 40-hour workweek to calculate the
hourly wage for a job category. For salaried workers, this is the
equivalent hourly wage.
iv To calculate the yearly rent, HotPads took
San Francisco's current monthly
median rent and multiplied it by 12.
v HotPads assumed eight-hour workdays to calculate the
days worked to pay rent.
vi Income data from the Bureau of Labor Statistics'
"Counter Attendants, Cafeteria, Food Concession, and Coffee Shop"
job category.
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SOURCE HotPads, Inc.