Santa Cruz County: America’s Least Affordable Rental Market

Intermediate | September 18, 2025

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Why Santa Cruz Ranks Worst: Housing Costs Skyrocket

In 2025, Santa Cruz County, California was named the Santa Cruz least affordable rental market in the U.S. for the third year straight. That means it’s the hardest county for renters—and many people are feeling the pressure. (Lookout)

To afford a typical two‑bedroom apartment in Santa Cruz, a full‑time worker would need to make about \$81.21 per hour. That’s over \$168,000 per year in income. (Fox Business)

What’s Behind the High Cost

Shortage and Regulation

The rise in rent isn’t just random—it has real causes. First, there’s a shortage of housing supply, especially affordable rentals. Fewer apartments are being built, and regulation or zoning laws often limit where and how fast new construction can happen. (Lookout)

Other factors: rising building costs, high land prices, and stricter environmental rules (like CEQA—the California Environmental Quality Act). All these add up, making it expensive to build or maintain housing. This is another reason Santa Cruz is considered the least affordable rental market in the country. (Fox Business)

What It Means for Workers and Renters

For many people in Santa Cruz, the numbers are alarming. The average renter earns about \$22.13 per hour, but needs to earn \$81.21 just to “afford” rent under the customary rule (pay no more than 30% of income on housing). That’s roughly 3.7 full-time jobs at the current wage. (Fox Business)

Minimum wage workers would need nearly 5 full-time jobs just to cover that two-bedroom rent. Obviously, that’s not realistic. (Lookout)

The Wider Picture: California & the US

Santa Cruz isn’t alone—California dominates the list of least affordable rental markets. Among the top ten most expensive metro or county rental markets, eight are in California, including places like San Jose, San Francisco, Salinas, and Santa Barbara. (Economic Times)

Nationally, there’s a gap of millions of affordable rental homes for people with extremely low incomes. The Out of Reach report estimates that many U.S. households need help, and places like Santa Cruz show how bad things have become. (Fox Business)

What Are People Saying & Possible Solutions

Local housing advocates say yes, new housing is being built—but not nearly enough. Projects are delayed, and community resistance (“not‑in‑my‑back‑yard” attitudes), zoning limits, and high costs of permits all slow things down. (Lookout)

Some suggestions: ease zoning restrictions, speed up permit approval, allow more dense housing, provide subsidies or support for affordable housing units. But there are trade‑offs: environmental concerns, opposition from some residents, and budget constraints. (Lookout)

Vocabulary

Affordability (noun) – the state of being financially able to pay for something.
Example: “The affordability of housing is a major concern in Santa Cruz.”
Shortage (noun) – lack or insufficient amount.
Example: “There is a shortage of affordable rental homes.”
Regulation (noun) – official rules made by authorities.
Example: “Environmental regulation can increase construction costs.”
Zoning (noun) – laws that decide how land can be used.
Example: “Zoning laws limit how many units a developer can build.”
Wage (noun) – payment workers receive, usually hourly or salary.
Example: “The average wage for renters is far too low.”
Permit (noun) – official document allowing something (like building).
Example: “Obtaining a permit for new housing can take many months.”
Subsidy (noun) – financial help usually given by government.
Example: “A subsidy for affordable housing could help many renters.”
Density (noun) – the number of housing units in a given area.
Example: “Higher density housing means more homes per block.”
Gap (noun) – a space between; a difference or distance.
Example: “There is a large gap between what renters earn and what rent costs.”
Advocate (noun) – someone who supports or speaks out for a cause.
Example: “Housing advocates are urging policy change in Santa Cruz.”

Discussion Questions (About the Article)

What makes Santa Cruz County especially unaffordable compared to other counties?
Why do you think zoning laws and environmental regulation often slow down housing construction?
How does the difference between what people earn and what housing costs affect daily life?
What are the challenges and benefits of increasing housing density in expensive areas?
Do you believe government subsidies or regulatory reform is more effective in solving this kind of housing crisis?

Discussion Questions (About the Topic)

In your country or city, do you see similar problems with rising rent? If yes, what are the causes?
How much responsibility should local vs state (or national) governments take for affordable housing?
What are the pros and cons of living in areas with high housing costs but more amenities?
Should renters expect to spend less than 30% of their income on housing, or is that rule out of date?
How could communities balance environmental protections with the need for more housing?

Related Idiom or Phrase

“Price of admission” – the minimal cost or effort required to get into something.

Example: “The price of admission for living in Santa Cruz is incredibly high: you need a high income just to rent a basic apartment.”

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This article was inspired by: Fox Business, Lookout, Economic Times