California is thriving under a $3 trillion economy and record low unemployment, with some of the largest corporations in the world — Google, Facebook and Apple — calling the state home. But the Golden State, perhaps, is seen through rose-colored glasses, with the glitz, glamour and sunshine overshadowing the real struggle of some California residents. The state has some of the highest wages in the country — but also the highest poverty rate.
That’s based on the cost of living, and most people can’t afford to pay that price. Housing costs in California are some of the most expensive in the United States, with 43% of California voters saying they can’t afford to live there. According to the Los Angeles Times, the city of Los Angeles spent $619 million on housing and services for the homeless in 2018. Yet homelessness in Los Angeles County was up 12% last year, with chronic homelessness up 17%.
Many homeless adults say their lack of housing can be attributed to job loss, with pain points focused on the ever-increasing price of rent in California’s cities. While homelessness often is associated with a lack of shelter and affordable housing options, it also can be attributed, in part, to unemployment and the desperate need for a regular paycheck.
The Times reported that 60% of homeless young adults are actively seeking work, but this percentage sharply decreases the longer people spend on the streets. This paints an interesting picture surrounding income inequality and the general quality of life in a state that is glossed with Silicon Valley shine.
To determine which cities and communities are most affected by California’s booming job market and the resulting homelessness, GOBankingRates analyzed Zillow housing and rental value data from January 2015 and January 2020. This data looked at cities where the typical home or rental value was below the California state average in 2015 but above the state average in 2020. This study also looks at the unemployment rate for each city’s metro statistical area, the five-year percentage change for both the home/rental value of each city and the unemployment rate for each metro area. Home values and rental values are ranked separately in this study, with the highest-scored city being first in each category.
Last updated: March 19, 2020
