Housing prices and rents have been rising in tech industry hubs like San Francisco, Denver, and New York, but is it’s not fair to place the full blame on tech workers, writes Sarah Mikhitarian of Zillow Research.
High rents and home prices are often seen in areas where a good share of individuals are earning high wages – whether they work in tech, finance, law, or any number of other industries associated with hefty paychecks.
On average, rents are $430 higher in metropolitan areas with a large concentration of tech workers, causing the typical renter in these areas to shell out 30.5% of their income towards rent each month, compared to only 19.7% in areas where tech is less prevalent. A similar – and stronger – result holds when comparing areas with a large share of high-earning, non-tech workers. Rents in those areas are $580 more expensive per month, on average, than in areas where there are not many high-earning jobs. This means renters in these areas spend an additional 11.1% of their income on rent each month relative to their counterparts living in metros with only a small handful of high-income positions.