Rising housing prices have deepened financial hardships, particularly for seniors and marginalized communities.

The U.S. Census Bureau released data showing that California continued to lead the United States in poverty rates despite the Golden state’s economic prosperity, with nearly 7 million residents unable to meet basic needs.

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California’s poverty rate reached 17.7 percent in 2024, placing it among the highest in the country alongside Louisiana. This figure represents approximately 7 million Californians — a population larger than the combined residents of Los Angeles, San Diego, San Jose and San Francisco.

The persistent poverty crisis struck California’s most vulnerable populations hardest, the U.S. Census Bureau showed, noting child poverty more than doubled since 2021, rising from 7.5 percent to 18.6 percent in 2024. This surge followed the expiration of expanded federal Child Tax Credit that had provided crucial support during the COVID-19 pandemic.

Elderly Californians also struggle hard, with 21.1 percent of adults aged 65 and older living in poverty — the highest rate among all age groups. Higher medical expenses contribute to their economic hardship.

“These figures reflect a troubling trend that began with the rollback of historic anti-poverty investments,” said researchers at the California Budget & Policy Center, a nonprofit policy organization.

California’s economic paradox — high poverty amid technological prosperity — highlights how expensive living costs can negate income gains. While hosting major technology companies and maintaining strong economic growth, the state struggles with the nation’s most severe affordable housing shortage.

According to the U.S. Department of Housing and Urban Development’s 2024 Fair Market Rent data, California’s average two-bedroom rental is US$1,749 per month, while recent market reports showed actual median rents range from US$2,199 to US$2,825 monthly, depending on the data source.

The national median rent stands at approximately US$1,400, according to Apartment List’s National Rent Report. Research also showed California would have poverty rates similar to the national average if its housing costs matched typical American levels.

More than one-quarter of California renters — 27.1 percent — experienced poverty in 2024, compared to 11.1 percent of homeowners. Latino and Black renters faced the highest poverty rates at 30.9 percent and 30.5 percent, respectively.

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Source: Xinhua

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