Since mortgage rates soared to historic levels and the affordability crisis in the housing market began due to the lack of inventory, many Americans have taken renting as their main option; However, this sector has also been affected, causing an exponential increase due to high demand.

While affordable rental prices are available in some metropolitan areas of the country, in other cities rental costs are nearly impossible for the average American to afford. Such is the case in certain cities in California where prices can reach almost $5,000.

According to a report by Out of Reach of the National Low Income Housing Coalition published this year, renters in areas like Santa Cruz, located on the Central Coast, will need to have a minimum income of $168,000 to afford a modest studio apartment.

The analysis indicates that renters must invest 30% of their income per month in housing, and details that the salary required to rent an apartment in this area went from $63.33 in 2023 to $81.21 per hour in 2025.

According to the study carried out According to Out of Reach, California is one of the states with the biggest housing affordability crisis, currently accounting for eight of the ten most expensive metropolitan areas. Researchers conclude that one reason for this problem is a persistent shortage of inventory. For Mike Lelieur, chairman of the Santa Cruz County Republican Party, "This is a policy-driven housing crisis, and unless we change course, it's only going to get worse," he said.