Study: On rent vs. income, Santa Rosa tops NY

A national analysis of rents and wages shows the New York City region as more affordable than the statistical area including Santa Rosa, part of a broader analysis that provides new perspective on the way national and North Bay rents are impacting the average household.

When compared to all areas across the U.S., Santa Rosa ranked ninth among areas where median rental prices take the largest share of median income. Six California cities required an even larger portion of average household wages for rent, but the share of income required for many Santa Rosa renters has seen greater increases over the past three decades than even San Francisco -- the sixth least affordable region in the U.S.

Los Angeles was ranked No. 1 on the list of least affordable.

While increasing rents have been widely documented across the North Bay, the analysis by Seattle-based online real estate market developer Zillow provides a new picture for how those expenses have tracked with average wages.

"Rents have gone up steadily. It's almost like the player in the shadows -- it has been chugging along quietly," said Svenja Gudell, director of economic research at Zillow. "A key component has been incomes. They haven't really increased for 10, sometimes 20 years."

The analysis differs from more commonly discussed trends involving average cost of rent, measures that make Santa Rosa a relative bargain to cities like San Francisco. Zillow began incorporating median income as part of its regular analysis this year, a measurement that illustrates how rents have tracked with the average household compensation, Ms. Gudell said.

Median-income households in the Santa Rosa metropolitan statistical area, which includes Petaluma, spent an average 39.8 percent of their monthly income on rent at the end of 2013. That rate represented a 49.1 percent increase compared to the Zillow benchmark for average share of income used for rent in the period between 1985 and 2000, beating the rate of increase for the high-rent stalwart of San Francisco over the same period by 3.7 percent.

Median-income renters in the Napa region spent an average 38.5 percent of their household income on rent, up 42.6 percent from the average share used for rent between 1985 and 2000. Similar data was not available for elsewhere in the North Bay.

In the broader New York City area, which also includes some other parts of the state and of New Jersey, for comparison, median-income households spent an average 39.5 percent of their monthly income on rent. In San Francisco, median-income households spent an average 40.7 percent.

The trend is not limited to California and other high-cost pockets around the country: the average proportion of payments was 29.6 percent across the United States, representing a 24.9 percent increase over the same period.


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