This California town tops the most expensive rental market in the nation for third year running

Renting in Santa Cruz, California now requires a stifling income of more than $168,000 just to rent a two-bedroom, a figure that makes it the most unaffordable market in the nation for the third year in a row.

In the Santa Cruz area, located on the Central Coast about 75 miles south of San Francisco, the hourly pay needed to afford a modest two-bedroom has risen from $63.33 in 2023 to $81.21 in 2025, according to the National Low-Income Housing Coalition’s 2025 Out of Reach report.

This is up nearly 30% since 2023, when they were first put at the top of the list.

That means a renter must now earn $168,920 a year to be able to afford a modest two-bedroom at fair market rent in the metro area, the report shows. That would be a max of $4,223 a month in rent to stay under 30% of their gross income. In California, where the minimum wage is $16.50, that’s the equivalent of working 4.9 full-time jobs.

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