Middle class is disappearing in California as wealth gap grows
After factoring for costs of living, California is the poorest state in the union. An average of 13.9 percent of Americans were below the poverty line in the Census Bureau?s Supplemental Poverty Measure ? California was at 19 percent, well over Alabama?s 14 percent. The supplemental measure not only factors in housing costs but families' well-being after programs like food stamps and housing assistance. Altogether, the state government has made life for poor and middle class Californians nearly unbearable.
How? California renters pay an average of $1,447 per month, compared to the $1,012 national average. In 2015 more than 40 percent of Californians spent over 30 percent of their income on housing. Today, 29 percent of them spend over half their earnings on housing. The median home value, at $529,000, is more than double the national median of $239,800. Residents who can afford rent or a mortgage are on the hook for electricity rates ? burdened by green initiatives and over-regulation ? that grew 500 percent faster than the national average from 2011 to 2017.
Emp, that isn't new in Cal- It's always been too expensive for most people, because the climate, produce, and visual beauty has made it very attractive to potential buyers. The parts of the cities that are undesirable are where poor people live- no new news, here- there is no middle class, there-
I spent a great deal of time going to a from the Bay Area. My friend who still lives there, lives in a house smaller than we would and paid over 900k for it. I know the real estate thing is location, location location and his house in in Walnut Creek, but that's just ridiculous.
It has everything to do with politics. It has to do with regulations and taxation coming out of Sacramento. The time and cost to get a new power plant or chemical plant or refinery permitted is measured in years and in the millions of dollars. Its not worth the effort.
They're taxed to death in Ca. And fees are ridiculous. People share and rent homes and apts there. They DO have rent control so they can't raise it very much until and if someone moves out. It's got a lot of job potential and business opportunity but the pay rate there isn't that much more than anywhere else and cost of living is much higher. But people keep coming and paying, so until that stops, they will do what they do.
I was a young adult when I moved from Cali to Texas. My first real paying job with Young Adult buying habits, I thought I had died and nine to heaven here. Bought a 3 yr old house at age 23. Unheard of in Cali!
You mean arguing with the unwashed masses and peons on some obscure community message board isn't the height of accomplishment and ultimate goal for all middle aged, eccentric, retired Canadian millionaires?