Study: Blue collar, service workers can't keep up with Sacramento rent

Sacramento is attracting more people in search of jobs and affordable housing. But some people are getting left behind, as the city adjusts to rising rent prices and a flood of professionals from other metro cities.

Apartment List, a website which helps users search for the right apartment, recently released a report which analyzed post-rent wage growth nationwide for different professions in U.S. metro cities.

Post-wage growth is defined as money left after factoring in average rent costs. Apartment List looked at three categories of workers: knowledge workers- such as attorneys, medical professionals and engineers- blue-collar workers and service workers.

The site found that overall nationwide, post-rent wage growth has dropped for both blue-collar workers and service workers, while knowledge worker wages are thriving.

This means, blue-collar and service worker wages are not matching the growth in rent prices in the country's metro cities.

Over the past ten years, post-rent wages dropped seven percent nationally for service workers, while blue-collar workers saw a five percent decrease. On the contrary, knowledge workers saw an increase of six percent in their post-rent wages.

In Sacramento, service workers are looking at an even bleaker picture than the national average with a drop of 7.3 percent. Blue-collar workers post-rent wage dropped 1.4 percent in the Capitol city.

Knowledge workers post-rent wages in Sacramento are higher than the national average at 7.1 percent. 

The study found, post-rent wages for knowledge increased in 93 percent of all the metro cities looked at. However, only seven percent of metro cities analyzed saw wage benefits for all workers. None of those cities are in California.

To come up with the findings, Apartment List researchers looked at Bureau of Labor Statistics employment data from 2005 to 2015.

Knowledge workers were earning more than double the wages of blue-collar and service workers in 2005. The gap has only continued to grow over the past decade. In metros with the most expensive rent and the fastest growing rent, such as in Sacramento, San Francisco and San Jose, blue collar and service workers are getting hit especially hard.

© 2017 KXTV-TV


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