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Renting in Santa Cruz, California now requires a stifling earnings of greater than $168,000 simply to hire a two-bedroom, a determine that makes it essentially the most unaffordable market within the nation for the third 12 months in a row.
Within the Santa Cruz space, positioned on the Central Coast about 75 miles south of San Francisco, the hourly pay wanted to afford a modest two-bedroom has risen from $63.33 in 2023 to $81.21 in 2025, in line with the Nationwide Low-Revenue Housing Coalition’s 2025 Out of Attain report.
That is up practically 30% since 2023 after they have been first put on the high of the record.
BILLIONAIRE IN-N-OUT HEIRESS LYNSI SNYDER AND FAMILY LEAVING CALIFORNIA FOR TENNESSEE
Guests pack the seaside in entrance of the Santa Cruz Seashore Boardwalk in Santa Cruz, Calif., on a summer time day. The coastal metropolis has been ranked the least inexpensive rental market within the U.S., in line with the Nationwide Low Revenue Housing Coalition’s 2025 (Tayfun Coskun/Anadolu Company through Getty Photos / Getty Photos)
Which means a renter should now earn $168,920 a 12 months, or $4,223 a month, to afford a two-bedroom at honest market hire within the metro space, the report exhibits. In California, the place the minimal wage is $16.50, that’s the equal of working 4.9 full-time jobs.
The report finds that the everyday renter doesn’t come shut. The typical renter in Santa Cruz County earns $22.13 an hour. At that price, it will take about 3.7 full-time jobs to afford an residence.
“It is a No. 1 we don’t wish to be,” stated Elaine Johnson, government director of Housing Santa Cruz County to the Santa Cruz Sentinel. “That is an all-hands-on-deck type of time for everybody concerned.”
California state dominates affordability rankings, in line with the Out of Attain report. The Golden State is house to eight of the ten costliest metro areas, together with San Jose, San Francisco, Salinas, and Santa Barbara. Statewide, the typical housing wage for a two-bedroom residence is sort of $50 per hour, which is the best of any U.S. state.
TIMELINE OF CALIFORNIA’S YEARSLONG AND ‘DISASTROUSLY OVERPRICED’ HIGH-SPEED RAIL PROJECT
The shoreline with a view of the Wharf close to the Santa Cruz Seashore Boardwalk in Santa Cruz, Calif. The coastal metro now requires $81.21 an hour to afford a modest two-bedroom rental, the best within the nation. (Stephen Dunn/Getty Photos / Getty Photos)
On the present minimal wage, a full-time California employee would want to place in 120 hours per week to afford the typical two-bedroom residence. In response to the report, “Nowhere in the USA—no state, metropolitan space, or county—can a full-time minimum-wage employee afford a modest two-bedroom rental house.”
The report attributes the issue to a extreme and chronic provide scarcity, estimating a nationwide hole of seven.1 million inexpensive rental houses for very low-income or ‘ELI’ households.
Critics say California’s housing market can be hindered by overlapping layers of regulation.
“CEQA[California Environmental Quality Act] and restrictive zoning laws are key contributors to California’s housing scarcity,” stated Dr. Wayne Winegarden, senior fellow on the Pacific Analysis Institute. “Prevailing wage mandates coupled with costly environmental mandates… additional inflates housing prices.”
Individuals stroll by the Santa Cruz Seashore Boardwalk amusement park in Santa Cruz, Calif. The favored vacationer vacation spot can be house to the best housing wage within the nation. (Craig Lee/San Francisco Chronicle through Getty Photos / Getty Photos)
Santa Cruz County Republican Celebration Chair Mike Lelieur instructed FOX Enterprise the affordability disaster is a direct results of many years of progressive coverage.
“The native planning division has made it so outrageously costly to construct that it’s simply not worthwhile except you’re backed by a giant company developer,” Lelieur stated. “Then you definately add CEQA, coastal fee opinions, limitless allow delays, and greenbelt restrictions. It’s a bureaucratic blockade by design.”
He additionally criticized the College of California, Santa Cruz, for increasing its pupil inhabitants quicker than it builds housing. “UCSC retains increasing, however they’re not constructing dorms quick sufficient. So college students flood the native market and landlords jack up rents — as a result of mother and pop are paying the invoice,” he stated.
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“It is a housing disaster created by coverage,” Lelieur stated. “And except we alter course, it’s solely going to worsen.”
The Santa Cruz Seashore Boardwalk and the Santa Cruz County Enterprise Council didn’t instantly reply to FOX Enterprise’ request for remark.
The total report could be discovered at