California cost of living too high for many working families, study shows
SACRAMENTO — The cost of living in California is too high for many working families — that's the consensus from a study released Tuesday by the United Ways of California.
Each year, the nonprofit presents its findings from the real cost measure to assist local governments in helping those in need.
The annual real cost measure takes into account rent for adequate housing, food, healthcare, child care, and transportation. And like previous years, the numbers are staggering.
The study finds 70% of single mothers, 51% of Latino families, and 45% of Black families struggle the most. When it comes to covering basic living expenses, 3.7 million Californians — or 34% of households — don't earn enough.
According to their data, 4 in 10 households in the state pay at least 30% of their income on housing. In the valley, that's 35% of households feeling the housing burden. In Sacramento County, a family of four with two small children needs to bring in $87,000 per year just to make ends meet.
The study also found that between 1984 to 2021, the state's GDP, which measures the cost of goods and services, grew a whopping 173% — but in that same time period, household earnings only grew 4%.
When factoring in high inflation, working families are feeling the most pressure.
"At one point, we saw a carton of eggs go for about $9, gas is at its highest, rent continues to climb, basic necessities like preparing a meal become extremely expensive," said California Assemblymember Miguel Santiago, who represents the 54th district in Los Angeles.
Santiago took part in Tuesday's real cost measure presentation. He, along with Senator Steve Padilla, stresses tackling income inequality, providing affordable housing to the working poor, and bringing back programs like the child tax credit as ways to offer opportunities to Californians struggling in today's economy.
