1.07 million households pay this much to a landlord
123% More Californians are Paying $3,000-Plus for Rent
California has 1.07 million households paying at least $3,000 a month to a landlord, and that flock has more than doubled in four years.
My trusty spreadsheet looked at Census Bureau housing data focusing on renters and how much they pay, comparing new 2023 results with pre-pandemic 2019. Tenants paying $3,000 or more is the highest price level tracked.
For starters, let’s note that high rent is no surprise to Californians. It ranked No. 1 in overall rent costs by census math for 2023 at $1,992 a month – 42% above the nation’s $1,406. Next was Hawaii at $1,940, Washington D.C. at $1,904, Colorado at $1,771, and Massachusetts at $1,757. Golden State rivals Texas was No. 18 at $1,413 and Florida was No. 7 at $1,719.
California also led the nation in 2023 in households paying $3,000 or more a month for rent. It’s home to 37% of the 2.9 million Americans paying that much to their landlord. It’s got more high-paying tenants than the next five states combined – New York, Florida, Massachusetts, Texas and New Jersey.
Plus, this high-priced housing is swelling. During the previous four years, the $3,000 club in California grew by 587,787 households – the largest jump in the nation and equal to one-third of the 1.8 million US additions to the group.
Numerous factors nudge California rents skyward. Above-average paychecks can often afford to pay this much. And the state was an already heavily competitive market for housing – before the pandemic rearranged how people lived. Rents jumped further.
Also, many California families can’t afford ownership, so they rent pricier houses.
Yet, do not overlook that Golden State landlords have been pioneers in the art of luxury rentals. This premium product offers folks who can afford to buy many of the comforts of ownership – without the numerous hassles.
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Growth spot
The $3,000 rent club is rapidly expanding across the nation.
Consider the growth on a percentage basis that adjusts for California being the No. 1 state for all renters, with 5.85 million households having landlords. In 2019-23, Golden Staters paying $3,000-plus grew by 123%, but that’s the ninth-slowest upswing and below the 159% expansion nationwide.
Tops? Wyoming grew by 1,998% – yes, 21-fold – then West Virginia at 1,032%, Mississippi at 650%, Maine at 638%, and Delaware at 569%. And California’s big rivals? Texas was No. 24, up 251%, and Florida, No. 12 at 441%.
Bottom line
Last year, 18.2% of California’s renters paid $3,000 or more – and that’s up from 8.3% in 2019.
For 2023, California ranked No. 2 in this share behind Hawaii at 21.2%. Next was Washington, D.C. at 16.8%, Massachusetts at 13.6%, and New York at 12.8%. Texas was No. 23 at 2.9% and Florida, No. 9 at 7.2%.
Conversely, where is it hardest to find this pricing? Less than 1% of renters pay $3,000-plus in North Dakota, Mississippi, Kentucky, Oklahoma and Arkansas.
You can say the $3,000 rental is mainly a coastal problem. It’s only 6.6% of US rental supply. But that’s up from 2.7% in 2019.
Source: SiliconValley.com
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