Feb 17, 2014
In 2013, the median rent for an apartment in California reached $1,550. This means that about HALF of the rental apartments in the state cost more than HALF of the entire income of a full-time worker who makes $20 an hour, AFTER taxes.
And millions of workers certainly don’t make that much these days – in 2013, the average hourly wage of all renters in the state was $18 an hour.
The high number of foreclosures drove up rents in California because as thousands and thousands of working-class families lost their homes in the “Great Recession” and looked for a rental home, landlords (including the banks that owned the foreclosed homes) jacked up rents to take advantage of these same families in need!
This is exactly how capitalism works.