Most California renters identify as “have-nots” in divided economy

Renters across the state are strapped.

That’s the conclusion of a poll by the Public Policy Institute of California, which found two out of three renters had “fair” or “poor” finances, the Orange County Register reported.

The institute surveyed 1,576 adults in June, who said their extra cash had been eaten up by the worst inflation in four decades. The price increases included steep rent hikes.

The PPIC poll offered rare insight into the outlook of California renters because the institute broke out its poll results by renters versus homeowners.

The poll found 69 percent of renters said their personal finances were “fair” or “poor,” compared to 33 percent for homeowners.

Some 40 percent of the surveyed tenants said their finances were worse off than a year ago, compared to 26 percent for owners.

At the same time, 55 percent of renters said California’s business climate is now in a “serious” or “moderate” recession, compared to 44 percent of owners. Some 71 percent of renters forecast the next 12 months in California will be “bad times” economically, compared to 66 percent of owners. 

Nationally, 79 percent of renters and 74 percent of owners see dark times ahead for the U.S. economy.

For 46 percent of tenants, the cost of housing strains family finances “a lot,” compared to 15 percent of owners.

The cost of shelter is so worrisome that loosening environmental protections to build more affordable housing is supported by 71 percent of renters and 56 percent of owners. Rising housing prices are a “serious hardship” for 34 percent of tenants, versus 14 percent of owners.

The poll suggests a long-running class division, with renters on the losing end. Some 66 percent of tenants see themselves as “have-nots,” compared to 33 percent of owners. More than one in five tenants described themselves as “low income” compared to 3 percent of owners.

California had 3.1 million out of its 5.9 million renting households deemed financially stressed by housing costs in 2021, according to the U.S. Census. Renters’ median housing costs were $21,000, out of a median income of $60,769.

Of 7.4 million homeowners across the state, 2.3 million were financially stressed. The median housing expenses for owners was $22,944, out of $109,974 incomes. So renters spent 9 percent less than owners, but had 45 percent smaller paychecks.

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— Dana Bartholomew