California Still Has The Nation's Highest Poverty Rate

When you look at the numbers, California's economic condition is really very good. The State unemployment is low. Nearly 3 million jobs have been created since 2010.

Even that said, one-fifth of the States population live in poverty. According to statistics released Wednesday by the U.S. Census Bureau, there is no other state in the union has a larger poverty rate than ours. Florida and Louisiana come close.

How do we have such a devastating poverty rate when the economy is booming? The short answer is California's astronomical housing costs.

According to reports California housing costs are mostly to blame for the high poverty rate.

Even though it seems more Californians are working they are no longer employed in middle-class jobs. Over the last dozen years, Californians have seen an increase in rents of 13.2 percent, while annual earnings have only grown by 4.1 percent.

"The state of California has some of the most expensive housing in the country."

In some California cities, the average four-bedroom, the two-bathroom home would set you back over $2 million, while a similar home would cost less than $100,000 in many other US cities. This, according to a study done by Kristoffer (Kip) Jackson, of the LSE US Centre’s daily blog on American Politics and Policy.

Jackson finds, an absence of physical or other impediments to attribute high prices too. Rising home prices are profit opportunities for developers, who, in order to exploit these opportunities, respond by building new homes. He also cites a lack of effort to attain a goal of affordable housing by communities and legislators.

morgue file photo credit: lauramusikanski

Even though the economy may be doing better overall at the level of individual families, it's not enough to have a job if your wages don't pay the rent.

EARLY SIGNS OF PROGRESS?

California's poverty rate may be high. But it is going down.

Last year, the Census Bureau reported a poverty rate is decreasing slightly for California. It is viewed that higher pay among California's low-income workers may help explain the drop seen this year.

The state works toward a minimum pay rate of $15 per hour, the growth of housing and rents soar in comparison.

Even if the state works toward a minimum pay rate of $15 per hour, the growth of housing and rents soar in comparison.

Even with Rent Relief legislation, like that sponsored by U.S. Senator Kamala D. Harris, does not appear to help the bottom of the pile of working class families. The bill, joined in the introduction by Senators
Dianne Feinstein (D-CA), Richard Blumenthal (D-CT), and Maggie Hassan (D-NH), contends that a tax credit will put cash back in the pocket of the lower class renter

While the crisis peaks for many, even those with jobs, profit and market are driving costs up in the housing market by nearly 13 percent in one year.

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