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What a dramatic, $2,304 difference a year made in renting Riverside apartments

By in Press Enterprise on July 13, 2017

By Fielding Buck

It takes an income of $61,329 to comfortably afford a $1,431-a-month two-bedroom apartment in Riverside, according to SmartAsset.

It climbed to No. 10 on a list of 15 of “Incomes Needed to Pay Rent in America’s Largest Cities,” compiled by the five-year-old financial services tech company.

Riverside was No. 13 on SmartAsset’s 2016 list, when the average apartment was $1,239 a month and residents needed an average income of $53,100 a year to afford one.

That means to keep up with SmartAsset’s standards, Riverside residents would need to earn $8,229 more this year and would, over a year, pay $2,304 more in rent.

At the top of the list is San Francisco, where someone would need to earn $179,529 a year to afford a $4,189-a-month two bedroom apartment.

Nos. 2 and 3 are New York City and Boston, which require incomes of $164,614 and $135,686 for apartments that average $3,166 and $2,556 a month, respectively.

Los Angeles is No. 4, with an income of $109,543 required for a $2,254-a-month apartment.

To make the list, researchers looked at rents in 242 cities.

It’s not a top 10 list. The study notes there are 15 cities in the United States where residents need to earn $100,000 a year to afford two-bedroom apartments, and 10 of them are in California.

SmartAsset used data from listing service RentCafe for its rent prices. The study assumes a 28 percent rent-to-income ratio, which it considered comfortable. Many Inland renters pay a far higher percentage of their monthly incomes than that.

Despite raising rates, renting remains more affordable than buying, at least in the short term.

SmartAsset has a renting-versus-buying calculator on its website.

If a user plugs in RentCafe’s average rent and the current median price for a home in Riverside County — $356,000, according to CoreLogic — the calculator shows a buyer would have to stay in […]    

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