Business

Renters Appear More Satisfied in Many Pricey US Cities

Published

9 years ago

May 22, 2015

In this Feb. 3, 2015 file photo, a luxury rental building rises high above other buildings in the East Harlem section of New York. High rents are worth it. At least that's the sentiment of apartment dwellers in New York, San Francisco and Washington, who say they're more satisfied living in those cities than do renters in far more affordable areas such as Milwaukee, Albuquerque and Detroit, according to a survey released Thursday, May 21, 2015 by Apartment List. (AP Photo/Seth Wenig, File)

In this Feb. 3, 2015 file photo, a luxury rental building rises high above other buildings in the East Harlem section of New York. (AP Photo/Seth Wenig, File)

JOSH BOAK, AP Economics Writer

WASHINGTON (AP) — High rents are worth it.

At least that’s the sentiment of apartment dwellers in New York, San Francisco and Washington, who say they’re more satisfied living in those cities than do renters in far more affordable areas such as Milwaukee, Albuquerque and Detroit.

The finding comes from a survey released Thursday by Apartment List, a San Francisco-based company that helps renters find homes. It dovetails with other evidence that people are spending more on rent yet avoiding home ownership given the high cost of a down payment.

Tenants in the most expensive cities expressed more confidence in the local economy, felt safer from crime and enjoyed the parks, recreation and nightlife, according to the survey of more than 18,000 renters.

“These are all places that are very, very expensive,” said Andrew Tam, vice president of data science at Apartment List. “It’s this combination of having excellent job opportunities and an amazing lifestyle.”

In other words, it appears to reflect the adage that you get what you pay for. The higher prices point to strong demand from renters in cities with solid job markets and cultural and recreational amenities but also limited supplies of apartments. Renter priorities do shift with children. For parents, safety tends to edge out the local economy as the dominant factor.

Monthly rent for a two-bedroom in San Francisco averages $4,250. Even so, the availability of higher-paying tech jobs, outdoor space and lifestyle caused renter satisfaction there to be rated “A+.”

Washington, with its plum legal and government-related jobs, also earned an A+, and New York drew an A. (A grade at B- or lower was deemed below average.)

Cheaper rent proves to be a poor predictor of satisfaction, Tam said. Milwaukee, where rent for a two-bedroom averages $960 a month, earned a C -. Albuquerque ($750 a month) received a C-. Detroit ($610) flunked with an F.

Renters enjoyed the best of all worlds in Louisville, Fort Worth, Texas, and Columbus, Ohio: High satisfaction at roughly the same levels as the most expensive cities but with average rents below $800.

Evidence suggests that many renters are accepting the financial pressures created by expensive cities.

About a third of apartment dwellers in New York, San Francisco, Los Angeles and Miami are forking over half their paychecks for rent, said Jonathan Eppers, CEO of RadPad, whose company is slated to process up to $70 million in rental payments this year. The government defines housing costs in excess of 30 percent of income as burdensome.

Nearly 50 percent of renters using RadPad choose to pay with a credit card, even though the company charges them an additional fee for doing so. This suggests to Eppers that they’re trying to smooth out their cash flow because payday seldom lines up with due date for the rent.

“More renters than we think are living check to check,” Eppers said. “They’re willing to pay that 3 percent fee in order to make sure that they pay their rent on time.”

Nationwide, rents are consuming a greater share of incomes.

In April, the median rent climbed 4 percent over the previous 12 months to $1,364, real estate data firm Zillow said Thursday. That’s nearly double the 2.1 percent annual increase in hourly wages tracked by the Labor Department.

Many renters aspire to own a home. But 70 percent of tenants who dealt with a rent hike in the past two years say they “cannot afford” to buy at this point, according to survey results released Monday by mortgage giant Freddie Mac.

“We’ve found that rising rents do not appear to be playing a significant role in motivating renters to buy,” David Brickman, an executive vice president at Freddie Mac, said in a statement.

“This contradicts what some in the housing market think as they expect more renters ought to be actively looking to purchase a home.”

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State Controller Malia Cohen Keynote Speaker at S.F. Wealth Conference

California State Controller Malia Cohen delivered the keynote speech to over 50 business women at the Black Wealth Brunch held on March 28 at the War Memorial and Performing Arts Center at 301 Van Ness Ave. in San Francisco. The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

Published

5 days ago

April 20, 2024

Oakland Post

American Business Women’s Association Vice President Velma Landers, left, with California State Controller Malia Cohen (center), and ABWA President LaRonda Smith at the Enterprising Women Networking SF Chapter of the ABWA at the Black Wealth Brunch.

By Carla Thomas

The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

“Our goal is to educate Black and Brown families in the masses about financial wellness, wealth building, and how to protect and preserve wealth,” said ABWA San Francisco Chapter President LaRonda Smith.

ABWA’s mission is to bring together businesswomen of diverse occupations and provide opportunities for them to help themselves and others grow personally and professionally through leadership, education, networking support, and national recognition.

“This day is about recognizing influential women, hearing from an accomplished woman as our keynote speaker and allowing women to come together as powerful people,” said ABWA SF Chapter Vice President Velma Landers.

More than 60 attendees dined on the culinary delights of Chef Sharon Lee of The Spot catering, which included a full soul food brunch of skewered shrimp, chicken, blackened salmon, and mac and cheese.

Cohen discussed the many economic disparities women and people of color face. From pay equity to financial literacy, Cohen shared not only statistics, but was excited about a new solution in motion which entailed partnering with Californians for Financial Education.

“I want everyone to reach their full potential,” she said. “Just a few weeks ago in Sacramento, I partnered with an organization, Californians for Financial Education.

“We gathered 990 signatures and submitted it to the [California] Secretary of State to get an initiative on the ballot that guarantees personal finance courses for every public school kid in the state of California.

“Every California student deserves an equal opportunity to learn about filing taxes, interest rates, budgets, and understanding the impact of credit scores. The way we begin to do that is to teach it,” Cohen said.

By equipping students with information, Cohen hopes to close the financial wealth gap, and give everyone an opportunity to reach their full financial potential. “They have to first be equipped with the information and education is the key. Then all we need are opportunities to step into spaces and places of power.”

Cohen went on to share that in her own upbringing, she was not guided on financial principles that could jump start her finances. “Communities of color don’t have the same information and I don’t know about you, but I did not grow up listening to my parents discussing their assets, their investments, and diversifying their portfolio. This is the kind of nomenclature and language we are trying to introduce to our future generations so we can pivot from a life of poverty so we can pivot away and never return to poverty.”

Cohen urged audience members to pass the initiative on the November 2024 ballot.

“When we come together as women, uplift women, and support women, we all win. By networking and learning together, we can continue to build generational wealth,” said Landers. “Passing a powerful initiative will ensure the next generation of California students will be empowered to make more informed financial decisions, decisions that will last them a lifetime.”

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Black Business Summit Focuses on Equity, Access and Data

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship. Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Published

5 days ago

April 20, 2024

Oakland Post

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA), answers questions from concerned entrepreneurs frustrated with a lack of follow-up from the state. January 24, 2024 at the Westin Los Angeles Airport Hotel, Lost Angeles, Calif. Photo by Solomon O. Smith

By Solomon O. Smith, California Black Media

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship.

Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA) was a guest at the event. He told attendees about his department’s efforts to increase access for Black business owners.

“One thing I’m taking away from this for sure is we’re going to have to do a better job of connecting through your chambers of all these opportunities of billions of dollars that are coming down the pike. I’m honestly disappointed that people don’t know, so we’ll do better,” said Omishakin.

Lueathel Seawood, the president of the African American Chamber of Commerce of San Joaquin County, expressed frustration with obtaining federal contracts for small businesses, and completing the process. She observed that once a small business was certified as DBE, a Disadvantaged Business Enterprises, there was little help getting to the next step.

Omishakin admitted there is more work to be done to help them complete the process and include them in upcoming projects. However, the high-speed rail system expansion by the California High-Speed Rail Authority has set a goal of 30% participation from small businesses — only 10 percent is set aside for DBE.

The importance of Diversity, Equity and Inclusion (DEI) in economics was reinforced during the “State of the California Economy” talk led by author and economist Julianne Malveaux, and Anthony Asadullah Samad, Executive Director of the Mervyn Dymally African American Political and Economic Institute (MDAAPEI) at California State University, Dominguez Hills.

Assaults on DEI disproportionately affect women of color and Black women, according to Malveaux. When asked what role the loss of DEI might serve in economics, she suggested a more sinister purpose.

“The genesis of all this is anti-blackness. So, your question about how this fits into the economy is economic exclusion, that essentially has been promoted as public policy,” said Malveaux.

The most anticipated speaker at the event was Janice Bryant Howroyd known affectionately to her peers as “JBH.” She is one of the first Black women to run and own a multi-billion-dollar company. Her company ActOne Group, is one of the largest, and most recognized, hiring, staffing and human resources firms in the world. She is the author of “Acting Up” and has a profile on Forbes.

Chairman of the board of directors of the California African American Chamber of Commerce, Timothy Alan Simon, a lawyer and the first Black Appointments Secretary in the Office of the Governor of California, moderated. They discussed the state of Black entrepreneurship in the country and Howroyd gave advice to other business owners.

“We look to inspire and educate,” said Howroyd. “Inspiration is great but when I’ve got people’s attention, I want to teach them something.”