Housing burden make Californians struggle to stay afloat

by Francis Monfort06 Jul 2018

With median home prices in California reaching new highs, households in the state are struggling to stay afloat, according to a study by United Ways of California.

The report found that almost 4 in 10 households in California (38%) pay more than 30% of their income on housing. Additionally, households below the Real Cost Measure, an unofficial poverty measure which accounts for local costs of living, report spending from 45% of their income on housing to as much as 79% of their income for households below the federal poverty level.

The California Association of Realtors recently reported that the median home price in the state reached $600,860 in May, up 2.8% from April and 9.2% from May 2017.

Additionally, the study found that more than one in three households (33%) do not earn enough income to meet their basic needs.

Other key findings of the study include that while households of all ethnicities struggle, but the rate is higher for Latino and African-Americans. The report estimates that more than 1.5 million Latino households o fall below the Real Cost Measure. This compares to more than 1 million white households, 429,000 Asian-American households, and 269,000 African-American households.

 

Related stories:
Median home prices in California just hit a new high
Rent control has 'done little' to tackle housing affordability – California Realtors

 

Poll

Should CFPB have more supervision over credit agencies?