What are the worst three cities for renters in America? Surprise. Manhattan does not make the cut. According to Forbes, they are San Francisco, Oakland and San Jose–based on price-per-listing, market availability, median income and comparing the price of a mortgage versus that of renting.
(Manhattan is number four.)
It’s no secret that the Bay Area, and San Francisco in particular, has seen a drastic jump in rental prices since the last quarter of 2014. As of March of this year, compared with just one year ago, rents in San Francisco had risen by 14.8%, and by 12.3% in San Jose.
Based on Q4 of 2014 listings, Forbes lists the average monthly rent in San Francisco as $2,802 with a 40% apartment vacancy rate. Renting, however, is still less expensive than paying an average mortgage of $5,851. The average income is listed as $85,087.
San Francisco has arrived on equal economic footing with Silicon Valley: both are like “twin engines” in terms of job and income growth resulting from the tech boom.
An influx of millennials (those born between 1980-1997) are either living at home with their parents or seeking increasingly to rent instead of buy.
According to Forbes, the top three cities for renters are Indianapolis, Kansas City, and “Sin City” Las Vegas. Average monthly rents run at $756, $793, and $767, respectively.
The entire Forbes list can be seen here.
Follow Adelle Nazarian on Twitter @AdelleNaz
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