Renters across the state are struggling.
That’s the conclusion of a poll by the Public Policy Institute of California, which found that two-thirds of renters are in “fair” or “poor” finances, According to the Orange County Register.
The institute surveyed 1,576 adults in June who said the worst inflation in four decades had drained their extra cash. The price increase includes a substantial increase in rents.
this PPIC poll The institute’s poll results, broken down by renters versus homeowners, offer a rare insight into the outlook for renters in California.
The survey found that 69 percent of renters said their personal financial situation was “fair” or “poor,” compared with 33 percent of homeowners.
Some 40% of surveyed tenants said their financial situation was worse than a year ago, compared with 26% of landlords.
Meanwhile, 55 percent of renters said California’s The business environment is currently in a “severe” or “moderate” recession, while the proportion of owners is 44%. Some 71 percent of renters predict “bad times” for the California economy over the next 12 months, compared with 66 percent of landlords.
Nationally, 79% of renters and 74% of homeowners believe dark times are ahead for the U.S. economy.
For 46 per cent of renters, housing costs put a “significant strain” on household finances, compared with 15 per cent of landlords.
Housing costs are such a concern that 71% of renters and 56% of homeowners support relaxing environmental protections to build more affordable housing. Rising home prices were a “serious hardship” for 34 per cent of renters, compared to 14 per cent of landlords.
Polls show that class divides persist and renters are at a disadvantage. Some 66 percent of renters consider themselves “poor,” compared with 33 percent of landlords. More than one in five renters described themselves as “low-income,” compared with 3 percent of landlords.
According to the U.S. Census, 3.1 million of the 5.9 million renter households in California in 2021 are facing financial stress due to housing costs. The median renter income was $60,769 and the median housing cost was $21,000.
Of the state’s 7.4 million homeowners, 2.3 million are facing financial stress. Homeowners had an average housing expenditure of $22,944 and an income of $109,974. As a result, renters spend 9% less than homeowners, but earn 45% less.
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— Dana Bartholomew
