California rent hikes often outpace pay raises

Published: Friday, February 6, 2026 at 2:24 pm

California Renters Face Mixed Financial Landscape

A recent analysis of rental and wage data reveals a complex financial picture for renters in California, with some areas experiencing gains while others struggle to keep pace. The study, comparing 2019 and 2024 data across 96 U.S. metropolitan areas, including nine in California, highlights the challenges faced by tenants in the state.

Overall, the data indicates that in the nine California markets analyzed, wages grew at a slightly faster rate than rents. Over the five-year period, rents increased by an average of 4.8% annually, reaching $2,768 per month in 2024. Simultaneously, wages in these areas saw an average annual increase of 5.4%. This resulted in a modest advantage for renters, with wages outpacing rent hikes by 0.6 percentage points annually.

However, this positive trend was not uniform across the state. The Bay Area, specifically San Jose and San Francisco, saw the most significant gains for renters. In San Jose, wages outpaced rents by 5.6 percentage points, while in San Francisco, the gap was 4.4 percentage points. Los Angeles and Orange counties also saw a slight advantage, with wages outpacing rents by 0.2 percentage points.

Conversely, renters in other California metropolitan areas faced financial headwinds. Sacramento, San Diego, Stockton, Inland Empire, Fresno, and Bakersfield all experienced rent increases that outpaced wage growth. The gap was particularly pronounced in Bakersfield, where rents grew by 8.6% annually, outpacing wage increases by 3.8 percentage points.

The study also revealed that in the 87 U.S. markets outside of California, rent hikes outpaced wage increases by a larger margin, with rents growing by 5.8% annually compared to a 4.7% increase in wages.

BNN's Perspective:

While the overall picture for California renters appears slightly better than the national average, the disparity within the state is concerning. The significant gains in the Bay Area are offset by the struggles in other regions, highlighting the need for targeted policies to address affordability and ensure that wage growth keeps pace with the rising cost of living across all areas of California.

Keywords: California, rent, wages, housing, affordability, Bay Area, San Jose, San Francisco, Los Angeles, Orange County, Sacramento, San Diego, Stockton, Inland Empire, Fresno, Bakersfield, rent growth, wage growth, metropolitan areas, United States

Full Story