Cost of Living
People and Businesses Are Leaving
With home prices so high and the cost of living continuing to climb, many Californians are leaving for states like Texas, Arizona and Nevada where housing is significantly cheaper. Many businesses are also relocating, looking for lower costs and fewer regulatory burdens. If this trend continues, California risks losing not only its workforce but also its economic competitiveness.
Poverty Crisis
California has the highest poverty rate in the country.
Over 5.1 million Californians live in poverty—far more than any other state in the country. While California’s high cost of living plays a major role in this crisis, the problem is compounded by high taxes, exorbitant energy rates and skyrocketing housing costs.
Homelessness
Despite an estimated $24 billion expended since Gavin Newsom became governor in 2019, the number of homeless people in California has continued to rise. The homelessness crisis in California has reached historic levels, accounting for over 24% of the nation’s homeless population—more than 187,000 people. No other state comes close to these numbers. California’s homeless population has grown more than any other state since 2007, according to HUD’s 2023 Annual Homeless Assessment Report.
Cost of Raising a Family
According to data analyzed by SmartAsset, California is the 6th most expensive state in the union to raise a child. The median annual cost of a child in the state will set you back nearly $30,000, with childcare being half of that. Another significant expense to parents is the cost of additional housing as families expand.