High rents caused California to have highest poverty rates in the US: report

20.4 percent of the state’s residents are in poverty, according to Census

Roughly 20 percent of the Los Angeles population struggles with poverty (credit: Getty Images)
Roughly 20 percent of the Los Angeles population struggles with poverty (credit: Getty Images)

Turns out the Golden State is lacking in gold.

Nearly one in five California residents are facing financial trouble when it comes to factoring in the cost of living — which makes it the state with the highest percentage (20.4 percent) of people living in poverty, KPCC reported.

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High rents are likely the cause, according to the California Budget and Policy Center.

Market rent for a two-bedroom apartment in a popular area costs more than $1,500 a month. If a minimum-wage full-time worker were to follow the general rule of thumb, spending only 30 percent of their income on rent, that would leave a mere $546 a month, Budget Center analysis shows.

Without taking the cost of living into account, the state ranks at No. 16 in the country with 14.5 percent of the population living below the poverty line. [KPCC] – Natalie Hoberman

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