Here's the list of 8 U.S cities where millennials can’t afford one-bedroom rentals

A one-bedroom apartment in California’s Los Angeles-Long Beach-Anaheim metro area is considered way beyond the earnings of an adult who has begun his career. Based on a study by Filterbuy, it has been noted that the average income needed to afford a one-bedroom apartment is way beyond their capacity as the amount required is around double the annual earnings. The age group considered is 24 to 39 years.

Considering that 30% is allocated towards rent annually, $72,560 is required as an annual salary for a one-bedroom rental. In contrast, the median earning is around $36,649. One has to pay around $20,000 annually for a one-bedroom.

If we think that the figure is taking half the population, then one half earns less than the amount mentioned and the other half earns more. It also goes for apartment rents, where half the apartments constitute less than the rent mentioned and the other half is more.


The West Coast makes it unthinkable for millennial renters where the gap between what is earned and what is required to pay is the widest. Five of the top 8 cities considered for the study are on the West Coast alone.




A peek into what the rentals required and the salaries earned.

Los Angeles-Long Beach-Anaheim, California	Annual Rent of one-bedroom	GAP	Annual salary earned
	$72,560	-$35,911	$36,649
Miami-Fort Lauderdale-West Palm Beach, Florida	Annual Rent of one-bedroom	GAP	Annual salary earned
	$52,320	-$20,906	$31,414
San Diego-Carlsbad, California	Annual Rent of one-bedroom	GAP	Annual salary earned
	$69,720	-$27,835	$41,885
Orlando-Kissimmee-Sanford, Florida	Annual Rent of one-bedroom	GAP	Annual salary earned
	$49,080	-$18,714	$30,366
San Francisco-Oakland-Hayward, California	Annual Rent of one-bedroom	GAP	Annual salary earned
	$1,00,400	-$37,573	$62,827
New York-Newark-Jersey City, New York New Jersey	Annual Rent of one-bedroom	GAP	Annual salary earned
	$71,360	-$26,334	$45,026
San Jose-Sunnyvale-Santa Clara, California	Annual Rent of one-bedroom	GAP	Annual salary earned
	$1,06,520	-$38,457	$68,063
Riverside-San Bernardino-Ontario, California	Annual Rent of one-bedroom	GAP	Annual salary earned
	$47,960	-$16,546	$31,414

With the gap increasing, it is getting far more difficult for the average millennial earner to rent an apartment to sustain in these cities. Rent has increased 25% since 2014, whereas employee earnings have grown just 6%. On the other hand, homeownership is beyond the scope of many, and as much as 25% of earners believe that they would always rent.

Soaring prices on the homeownership front is also a factor that has kept wage earners as renters. On top of this is the student loan factor which prevents new earners from buying a home. Gradually many youngsters are moving away from the idea of buying a home. As low as 34% of millennial wage earners think it is important to own a home. Earners with babies are as low as 45%.

With such a wide expectation gap, most millennial earners don’t know how they will cope with the rising prices of almost everything. The dream home still exists in thoughts, although only for a few.