B'nai B'rith Housing

BBH is a nonprofit developer whose mission is to ease the housing crisis in the Greater Boston area.

  • About Us
    • Meet our Executive Director & Staff
    • Board of Directors
    • Real Estate Council of Advisors
    • Our Corporate Sponsors
    • Nonprofit Partners
    • Distinguished Achievement Award Honorees
    • Our Impact
  • Our Properties
    • The Coolidge at Sudbury
      • The Coolidge at Sudbury, Phase 2
    • Covenant House Communities – Brighton, MA
    • The Fairways & Carriage House at 33Comm – Newton, MA
    • The Machon – Swampscott, MA
    • Residences off Baker – West Roxbury, MA
    • 1201 River Street – Hyde Park, MA
  • News
    • Construction Updates
    • From Our Executive Director
    • Our Newsletters
    • Media Releases & Announcements
    • Housing News We’re Reading
  • Get Involved
    • Subscribe to Our Enews
    • Become a Donor
    • Become a Sponsor
    • Gen2Gen
    • Upcoming Events
    • Sign A Support Letter
    • Volunteer
    • Career Opportunities
    • Contact Us & Subscribe
  • Donate
Home / Housing News / Highly-Paid Tech Workers Still Have a Hard Time Renting in SJ

Highly-Paid Tech Workers Still Have a Hard Time Renting in SJ

March 21, 2019 by B'nai B'rith Housing News Service

Click here to view original web page at www.sanjoseinside.com
Rents may have started to flatten, but it's still insanely expensive to live in the Capital of Silicon Valley. (Photo by Ksenia Ragozina, via Shutterstock)

San Jose rents remain crazy expensive—even for IT professionals making six figures—with the gap between wages and housing costs officially the largest in the country, outpacing other tech hubs such as San Francisco, Atlanta, Boston and Seattle.

According to a new study from rental listing site RentCafe, IT wages in San Jose still lag far behind rental prices, even as housing costs have started to flatten. From 2016 to 2019 rents increased by 6.9 percent, while between 2014 to 2017 IT wages fell by 0.8 percent.

The study used different time periods because rent prices are usually affected a few years after there’s been an increase or decrease in wages, Florentina Sarac, the author of the study, told San Jose Inside.

San Jose has the most tech jobs of any city in the U.S.; they comprise 12 percent of the market. The number of IT jobs has only been increasing as multinational companies and startups continue to flock to Silicon Valley for its proximity to talent and venture capital. The tech boom has for years been putting a strain on the rental market as demand shoots up. The average rent in the San Jose metro area is $2,871, according to the study.

“As it happens with most tech hubs, following a big boom in the IT job market, a considerable number of people start relocating to the area,” Sarac said.

But while IT workers in San Jose still have the highest average wage at $126,000 compared to other tech hubs, wages have decreased slightly in the area. Boston was the only other tech hub that saw decreasing IT wages, according to the study.

Sarac said this may be because employers are doling out more non-financial perks such as flexible working hours, more days off or the possibility to work remotely.

The combination of increasing rents and decreasing wages may make renting a challenge even for IT workers making six figures. Rents have been steadily increasing since 2012, Sarac said, while IT wages tend to fluctuate.

“IT professionals living in San Jose metro should keep in mind that rent prices might continue to rise in and around the area,” Sarac said. “It would also be a good idea to keep an eye on nearby emerging tech-hubs like Portland metro and Salt Lake City metro, where the cost of living is considerably more affordable at the moment.”

Filed Under: Housing News Tagged With: affordable, housing

Subscribe to Our E-News

  • I agree to B'nai B'rith Housing's privacy policy and consent to receiving periodic communications.
  • This field is for validation purposes and should be left unchanged.

Follow BBH on Twitter

Tweets by bbhousing

In Their Own Words…

Being able to stay in my hometown, near friends and family was great. And now I have a whole new community at The Coolidge to socialize with, too. It is wonderful!
~ Resident, The Coolidge at Sudbury

Contact Us

34 Washington Street
Brighton, MA 02135
Phone: 617-731-5290
Fax: 617-739-0124

Follow Us

  • Facebook
  • Twitter
  • YouTube

Support BBH – Your Gift Matters!

Image of GuideStar and PayPal logos.

Thanks to Our 2019 Lead Sponsors

  • Jobs
  • Past Events
  • Donate
  • Subscribe to Our Enews