Rent crisis soars, pushing California homes out of reach for the average worker

By Jasmin Jose

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    May 30, 3025 (LAPost.com) — The increase in housing construction alone hasn’t resolved California’s escalating housing costs, a revealing analysis by the Daily News highlighted. The analysis also pointed out that despite efforts to boost supply, systemic issues continue to drive affordability out of reach for many residents.

California’s housing affordability crisis is intensifying, with renters bearing the brunt. As of 2025, the average rent in California stands at approximately $2,770 per month, significantly higher than the national average of $2,100. This disparity places immense financial pressure on tenants, especially those with moderate or low incomes.

According to the U.S. Census Bureau, nearly half (49.7%) of renter households nationwide spent more than 30% of their income on housing costs in 2023, classifying them as cost-burdened. In California, the situation is even more dire. The California Department of Housing and Community Development reports that over 3 million renter households pay more than 30% of their income toward rent, with nearly one-third—more than 1.5 million households—spending over half of their income on housing. 

The burden of high housing costs disproportionately affects low-income Californians. Data from the California Housing Partnership, a private non profit organisation, indicates that 78% of extremely low-income (ELI) renter households pay more than half of their income on housing costs. This severe cost burden leaves little room for other essential expenses like food, healthcare, and education.

Moreover, the availability of affordable housing for ELI households is alarmingly low. For every 100 ELI renter households in California, there are only 24 affordable and available rental homes. This shortage exacerbates the financial strain on the state’s most vulnerable populations

While the housing crisis is statewide, urban areas face unique challenges. In cities like San Jose, Los Angeles, and San Francisco, average rents far exceed the state average. For instance, the average rent in San Jose is approximately $3,199 per month, making it one of the most expensive rental markets in the country. 

These high costs have led to an exodus of low-income families from certain areas. A report by the San Francisco Chronicle highlighted that Marin County experienced the highest rate of low-income household departures in the Bay Area, with nearly 5% leaving over two years due to unaffordable housing and limited support.

In response to the escalating crisis, policymakers and advocacy groups are exploring various solutions. The California Housing Justice Act (AB 1165) aims to address housing affordability by expanding local governments’ authority to enact rent stabilization and rent control policies. 

Tenant unions and associations are also gaining momentum, advocating for renters’ rights and pushing for policies that ensure fair housing practices.

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