Rent and Salary in California 2023

This post works backwards from the cost of a small 1 bedroom in Santa Barbara to what you would have to make per hour if you were a part time worker.  

It is said that a person should spend approximately 1/3 of their income on housing, be that rent or mortgage.  It isn't all that clear to me whether this recommendation is before or after taxes, so we will examine both.  It is believed that Santa Barbara is expensive and that may be so, but it is only slightly pricey relative to many other parts of coastal California.  And of course California is expensive in various ways but also has a lot of advantages.  So we will work with Santa Barbara and then suggest an adjustment factor if you happen to be living in another state outside of a major metropolitan area.

Rent for a 1 bedroom in Santa Barbara in 2023 starts about $2,500 / month which means you would have to make a salary of $7,500 / month to live here or $90,000 / year.  Now federal and state taxes on $90,000 in California is about $25,861 / year which reduces your net salary to $64,139 or $5,345 / month.  If we take rent out of that it will leave $2,845 / month for all other expenses be they food, medical, savings, education, debt, and so forth.  

But I think when they say 1/3 of your salary on rent, they mean 1/3 of your net salary, which translates to approximately $135,000 / year gross salary.  This will leave the individual $5,000 / month for all other expenses and savings which seems reasonable.  

So lets take these two numbers ($90,000 and $135,000) as the limits of our calculations.  How much must you make per hour to live in Santa Barbara.  Well, if you are full time that would mean 52 weeks of 5 days per week or 40 hours a week.  That would mean 52*40 which is 2080 hours per year.  At 90,000 $US you would need to make approximately $43/hour.  To make $135,000 you would need to make about $65/hour.  

But the reality is that most people who are freelance do not work 40 hours a week all year long so they would need to make more than this per hour when they are working to support themselves.

Therefore we now know what one needs to make to live in a minimum place in Santa Barbara and that is between $43 and $65 per hour.   Maybe you live in Providence, Rhode Island or Eugene, Oregon in which case you might adjust these numbers down by as much as 1/3. 

Last time I checked minimum wage or Walmarts salaries were no where near that amount.  Do the math, government, and tell me what you think people should do.