Housing shortages cost California more than $140 billion each year in lost economic output. Residents of cities including San Jose, San Francisco, Los Angeles, and San Diego are spending more of their money on rent, inhibiting their ability to save for other purchases, including homes.
According to data from the National Association of Realtors, Fortune reports that shrinking supply is pumping up rental prices across the nation, particularly in popular markets along both coasts.
In Washington D.C., Baltimore, New York City, Boston, Seattle, and the largest California cities, people need to earn more than $26 an hour to afford a two-bedroom apartment without being considered cost-burdened (spending more than 30 percent of income on housing).
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