SAN DIEGO -- Bad news: San Diego is already considered one of the most expensive places to live in the United States, but now the cost of living in America's Finest City just went up again.
"[It's a] beautiful city, I wouldn't trade it for the world...beautiful city, but not the price to be paying for it," resident Jose Hernandez told 10News.
Real estate company Trulia says middle-class families in San Diego spend almost 65 percent of their income on housing, commuting and utilities.
"Quite effective on families that have a minimum wage, and have the kids and have the families," Hernandez said.
Demand has outpaced supply and rents have increased about three percent from the last quarter -- the highest gain San Diego has seen since 2000.
"Another job, you know, to try and keep food on the table," Hernandez said.
For anyone in the market for a one-bedroom rental, experts say to be ready to spend about $1,500 a month. A two-bedroom will cost just over $2,000 in rent.
Whether its downtown, in the heart of San Diego, or in a quiet neighborhood, prices for rentals are continuing to go up.
"A lot of the rentals don't even hit the open market in the multiple listing system," said Ken Kaplan, a real estate agent with Campbell and Kaplan Real Estate.
Many rentals end up on websites such as Craigslist.
"And that's really a primary source for renters in this market," Kaplan said. "Do your history, a background check on the owners themselves, as they would on you as a renter."
"The owner, that homeowner that you're renting from, isn't in a notice of default situation, isn't in a pre-foreclosure situation so that you're not getting notes on your door the minute you move in going, 'Hey, you've got 30 minutes to get out,'" Kaplan added.