{"id":505033,"date":"2024-08-14T19:45:51","date_gmt":"2024-08-14T23:45:51","guid":{"rendered":"https:\/\/www.rent.com\/research\/?p=505033"},"modified":"2024-08-14T19:45:52","modified_gmt":"2024-08-14T23:45:52","slug":"san-jose-ca-teacher-affordability","status":"publish","type":"post","link":"https:\/\/www.rent.com\/research\/san-jose-ca-teacher-affordability\/","title":{"rendered":"San Jose, CA Has One of the Lowest Shares of Rentals Affordable for Teachers"},"content":{"rendered":"\n

Less than 10% of rentals in San Jose are affordable for teachers \u2013 among the lowest shares in the nation<\/h3>\n\n\n\n

For many teachers, finding a place to live that doesn\u2019t break the bank can be nearly impossible<\/a>, as rising costs of living and meager wage increases strain budgets. This is especially true in San Jose, where just 9.8% of rentals are affordable to teachers <\/strong>\u2013 up from 2.1% in 2019. <\/p>\n\n\n\n

Nationwide, 47.9% of rentals are affordable to teachers \u2013 up from 40.7% last year but much lower than 2019, when 58% of rentals were affordable. <\/p>\n\n\n\n

These figures underscore how much rents have <\/strong>outpaced wages<\/strong><\/a>, especially <\/strong>since the pandemic<\/strong><\/a>. This effect is beginning to wear off, though, as rent prices stabilize<\/a>. <\/p>\n\n\n\n

People left San Jose in droves<\/a> in search of a more affordable cost of living, often moving to Miami or Phoenix. This trend has somewhat stabilized<\/a>, though, and rents recently rose (slightly) year-over-year.<\/p>\n\n\n\n

But why are so few San Jose rentals affordable to teachers? Let\u2019s find out.<\/p>\n\n\n\n

Why are San Jose rentals unaffordable for teachers? <\/h2>\n\n\n\n

San Jose is so unaffordable for teachers largely because housing costs are so high. <\/strong>The median rent in San Jose is $3,302, up slightly from 2023 and far above the nationwide median of $1,647. The typical San Jose house sells for $1.4 million \u2013 the highest in the country.<\/p>\n\n\n\n

Median wages among San Jose teachers are quite high, too, reaching $100,805 in 2023. However, these wages still aren\u2019t enough<\/a> to comfortably live in the city, leaving many teachers cost-burdened<\/a>. Teachers would need to make over $118,000 to afford a market-rate rental. Teacher retention and hiring<\/a> has been very difficult as a result.\u00a0<\/p>\n\n\n\n

The sky high cost of living isn\u2019t just affecting teachers, either; overall student enrollment across the city is now down<\/a>, prompting possible closures and budget cuts.<\/p>\n\n\n\n

San Jose has worked hard to improve teacher pay over the years, increasing teacher salaries by over 15% since 2019. Unfortunately, record-breaking inflation<\/a> during the same time period has made these increases less valuable. And recently, the city announced<\/a> they couldn\u2019t afford to honor a new compensation agreement with the San Jose Teachers Association. A $73 billion <\/a>statewide budget deficit is making pay increases more difficult, too. <\/p>\n\n\n\n

Not all expensive California are seeing the same trends, though. To the south in San Diego, a large increase in wages and fall in apartment rents helped raise the share of affordable apartments from 0% to 35%.<\/p>\n\n\n\n

What\u2019s happening with teacher affordability nationwide?  <\/h2>\n\n\n\n

Nationally, teacher salary growth has actually outpaced rent price growth. The <\/strong>average public school teacher salary<\/strong><\/a> in 2023-2024 is ~$72,000<\/strong>, up 3.1% from the year prior, while median asking rents increased just 0.4% over the same time period. Rent growth is slowing or reversing in some parts of the country due to an increase in apartment supply. <\/p>\n\n\n\n

Still, many teachers are struggling to find affordable rentals. Rent growth has slowed but remains just $53 below its 2022 record high, and teacher salaries have not kept pace<\/a> with recent historic inflation<\/a>. In fact, teacher salaries are actually 5% <\/strong>lower <\/em><\/strong>than a decade ago when adjusted for inflation<\/strong>. The combination of high rent prices, persistent inflation, and modest wage increases has resulted in record-low affordability<\/a>. <\/p>\n\n\n\n

However, in metros where teachers are paid more, affordability is often slightly better. An exception is in places with exceptionally expensive rentals, like San Jose and Los Angeles. These metros have among the lowest number of rentals affordable to teachers, even though median wages top $100,000.<\/p>\n\n\n\n

To the south in San Diego, a large increase in wages and fall in apartment rents helped raise the share of affordable apartments from 2% to 35%.<\/p>\n\n\n\n

Where do we go from here?<\/h2>\n\n\n\n

Homeownership remains out of reach for many educators, who, unlike many modern workers, don\u2019t have the flexibility to work remotely from somewhere more affordable. Unfortunately, rentals are also quite expensive in many cities.<\/p>\n\n\n\n

A few ways to help increase the amount of housing affordable to teachers include building affordable housing<\/a> near schools, increasing pay<\/a>, and allowing collective bargaining<\/a>.<\/p>\n\n\n\n

10 Least Affordable Metros for Teachers Looking to Rent<\/h2>\n\n\n\n
Metro<\/strong><\/td>Average share of rentals affordable to teachers* <\/strong><\/td>YoY change in share of affordable rentals (ppts)*<\/strong><\/td>Median asking rent<\/strong><\/td>YoY change in median asking rent<\/strong><\/td>Median teacher salary<\/strong><\/td>YoY change in median teacher salary<\/strong><\/td><\/tr>
Miami, FL<\/a><\/td>0.2%<\/td>+0.1 ppts<\/td>$2,430<\/td>-3.2%<\/td>$53,297<\/td>-11.9%<\/td><\/tr>
Orlando, FL<\/a><\/td>6.7%<\/td>+3.6 ppts<\/td>$1,772<\/td>-4.4%<\/td>$51,611<\/td>+4.1%<\/td><\/tr>
San Jose, CA<\/a><\/td>9.8%<\/td>+1.7 ppts<\/td>$3,302<\/td>+0.8%<\/td>$100,805<\/td>+4.7%<\/td><\/tr>
Boston, MA<\/a><\/td>15.7%<\/td>+8.0 ppts<\/td>$2,833<\/td>+5.1%<\/td>$84,444<\/td>+4.8%<\/td><\/tr>
New York, NY<\/a><\/td>20.4%<\/td>+1.9 ppts<\/td>$3,047<\/td>+3.2%<\/td>$95,320<\/td>+8.6%<\/td><\/tr>
Denver, CO<\/a><\/td>26.7%<\/td>+6.2 ppts<\/td>$1,827<\/td>-0.3%<\/td>$65,204<\/td>+6.4%<\/td><\/tr>
Nashville, TN<\/a><\/td>31.4%<\/td>+20.7 ppts<\/td>$1,549<\/td>-4.8%<\/td>$56,987<\/td>+10.8%<\/td><\/tr>
San Diego, CA<\/a><\/td>34.6%<\/td>+33.0 ppts<\/td>$2,699<\/td>-12.7%<\/td>$96,594<\/td>+15.5%<\/td><\/tr>
Phoenix, AZ<\/a><\/td>36.4%<\/td>+13.3 ppts<\/td>$1,528<\/td>-4.4%<\/td>$57,288<\/td>+7.4%<\/td><\/tr>
Los Angeles, CA<\/a><\/td>37.7%<\/td>+11.3 ppts<\/td>$2,772<\/td>-4.4%<\/td>$96,766<\/td>+5.0%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Table sorted by average share of rentals affordable to teachers, from low to high<\/p>\n\n\n\n

*Within commuting distance of school<\/p>\n\n\n\n

Methodology<\/h2>\n\n\n\n

According to a Redfin analysis<\/a> of local median teacher salaries and rental listings in commuting distance of public and private PreK-12 schools across 33 major U.S. metropolitan areas, as of August 2024. Rental data only covers apartments listed on Rent. and Redfin. <\/p>\n\n\n\n

School location data came from GreatSchools<\/a>. The 20-minute rush hour commute time was determined for each school using the WalkScore Travel Time API<\/a>. <\/p>\n\n\n\n

Annual teacher wage data came from the U.S. Bureau of Labor Statistics\u2019s Occupational Employment and Wage Statistics program and covers the 2022-2023 school year, unless otherwise noted.<\/p>\n\n\n\n

A listing is considered “affordable” if the monthly payment was estimated to be no more than 30% of the metro area\u2019s median monthly teacher income.<\/p>\n","protected":false},"excerpt":{"rendered":"

Less than half of rentals nationwide are affordable for teachers, as wages continue to lag. The issue is much worse in San Jose, where just under 9.8% of rentals are affordable. Why?<\/p>\n","protected":false},"author":1022,"featured_media":505004,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[250,19835,19832,19828],"tags":[],"topics":[195,202],"renters":[],"cities":[],"propertymanagement":[],"class_list":["post-505033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industry-trends","category-renting-trends","category-research","topics-data-research","topics-news-trends"],"acf":[],"yoast_head":"\nTeachers Can\u2019t Afford to Live in San Jose: Why? | Rent. Research<\/title>\n<meta name=\"description\" content=\"Less than half of rentals nationwide are affordable for teachers, as wages continue to lag. 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