Greg Wilson

Greg Wilson

A recent analysis by online retailer Filterbuy (which sells water and air filters, oddly enough) shows that our area has one of the largest gaps between the cost of a one-bedroom apartment and what the average millennial earns (it seems that the largest percentage of renters in our area are millennials). According to Filterbuy, the median rent for a one-bedroom apartment is $2,500. Using the guideline that no more than 30% of one’s income should go to rent or a mortgage, you would therefore have to earn $100,000 per year to comfortably afford that median rent. Unfortunately, the median wage for a millennial in the San Francisco-Oakland-Hayward area seems to be just under $63,000.

An annual income of $63,000 translates to a monthly housing payment of $1,575. Because a median is determined by arranging all of the income values in sorted order and finding the one in the middle, half of the millennials in the area must earn less than $63,000 (and half earn more). So even if one could find an apartment in our area for $1,575 per month, there are many who still could not comfortably afford it.

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(4) comments

craigwiesner

Thanks for giving us lots to think about and ideas for action! Older folks reading this may harken back to the "old days" when families like mine crammed into spaces meant for far fewer people. My father, his sister and her husband, my grandparents, and my aunt and uncle all lived in one two floor house with three bedrooms in Rockaway New York. That lasted a few years until everyone could afford their own space. Immigrants, they get it done!

When I first moved to the Bay Area to take a tech job in 1987 rent for a one bedroom apartment was right in line with what I could afford and there were plenty of options. That sure has changed! Some of the millennials we know are sharing apartments/houses with two or three other roommates to make ends meet. Owner/landlords have to be willing to allow that. Others are renting rooms in people's houses, These options don't work for families whereas an ADU with a couple of bedrooms would! A local nonprofit worth checking out is HIP Housing (hiphousing.org). Sharing your home, or even an ADU, or renting a space to more than one or two people can all be safer if you're working with a nonprofit like HIP Housing.

Tafhdyd

Craig,

I was thinking about HIP Housing as I was reading your comment. I am glad you mentioned them. I have supported them for many years. They do a good job of matching people of need with people with rooms and vice versa.

craigwiesner

One of my colleagues on the LGBTQ Commission works there, Chris Sturken. He's also running for South San Francisco City Council.

Terence Y

Mr. Wilson, great idea if all goes ideally, but rental of these ADUs brings to mind whether these new landlords are willing to potentially put up with renters who do not pay their rent, and are then unable to evict these “problem” renters (some locales instituted eviction moratoriums and many locales have made it difficult to evict renters), causing a loss in hoped-for income. Also, how much is the property tax assessment increased due to the addition of an ADU, prefab or not? An assessment due for…ever, regardless of whether the ADU nets income. There are numerous issues to think about before deciding to build and/or rent out an ADU. For those who are deciding to take the plunge, good luck. Make an educated decision by researching both sides – it’d be nice if there were a site which provided feedback, good and bad, to share experiences.

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