Some students are having a difficult time finding a place to live after rent prices increase.
The average consumer price index in the Bay Area for rental spaces has increased by 4% from 2020 to 2023, according to a study by the Federal Reserve, the central bank of the U.S.
The consumer price index is a measure of the average pricing that is adjusted for inflation, according to a webpage from the U.S. Labor of Statistics.
Public health sophomore Dora Duran said she’s a full-time student with a part-time job who is struggling to find an apartment.
She said she’s trying to find a place that’s affordable and within walking distance from San Jose State.
“[It’s] so difficult, especially since you can’t really plan months in advance. You have to do it two months before you move and it’s so expensive,” Duran said.
After doing the math, Duran said her current salary would basically go to paying rent.
“I would only have $50 a week for myself,” Duran said. She said $50 would barely cover necessary expenses, including food.
Duran said $800 a month would be the most she would be able to afford without utilities. With her budget, she said it would be impossible to live on her own without having roommates.
Duran said she tried to make a friend group because it was too difficult to organize how much each person would pay for rent.
“It's just stressful thinking like, ‘I don't know where I'm gonna live next semester,’ ” she said.
Justice studies senior Raya Carrillo said she is trying to find an apartment in South Almaden with her partner, but is experiencing similar issues with housing.
“It’s just unaffordable. I don't know how anyone is really living right now like with the current systems we have in place,” Carrillo said.
Carrillo said she feels blessed to be able to share the cost of rent with her partner, but it’s still not affordable.
“The pricing is crazy. It's really not affordable with my almost minimum wage,” said Carrillo. “It's just not a livable wage at all.”
Carrillo said with her current salary, her budget only leaves them with $600 to pay for insurance, food, clothing and school supplies.
“School supplies, like textbooks, can be up to $300 a semester and that would take away most of the money I have to spend on things that I need,” Carrillo said.
SJSU assistant professor of economics Justin Rietz said that rent prices have been increasing because of inflation and higher interest rates.
Rietz said inflation has increased the prices for products across multiple markets throughout the country over the last two years.
“You go to the grocery store, things are more expensive. Cars are more expensive. [Houses] are the same,” Rietz said.
Reitz said the Federal Reserve has also been increasing interest rates.
The Federal Reserve increased interest rates on Jan. 25 in an attempt to decrease inflation, according to a Feb. 1 article by The New York Times.
Rietz said increases in interest rates also push prices up in rental spaces, making it difficult for consumers to take out loans to buy houses.
“That means more people are renting so you have a higher demand for rental units, and less demand for buying single family homes,” he said.
Rietz said the increase in inflation and interest rates can put students in a difficult financial situation.
He said as rent increases, if wages don't increase at the same rate, people might be unable to make up the difference.
“Especially as a student, you’re not making a lot of money, because you’re also going to school full time,” Rietz said. “That means you’ve got to balance [or] sacrifice something in order to afford your housing.”
Duran is considering getting a second job to afford rent.
She said it’s been really stressful because she still has to attend classes as a full-time student.
“It’s like I’m jumping through all of these hoops to try to get a place, but at the end of the day, it’s affecting my academics,” said Duran.
Carrillo said living in San Jose can feel impossible because residents have to pay for so much on top of inflation.
Carrillo said the current financial situation for her and many students on top of inflation and layoffs in the tech industry are unjust.
“It's not fair. There are so many unhoused people. You are always one car accident or electrical bill away from being unhoused,” Carrillo said.
