Calif. Renters More Likely to Leave Than Owners

by Jonathan Lansner is the business columnist for the SoCal Calif. News Group.

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A poll gauging the impact of the state’s challenging job market found that 24% of California renters would “seriously consider” leaving for elsewhere in the U.S. versus just 19% of homeowners.

The Public Policy Institute of California’s survey of Calif. adults conducted in late October 2021 offers vivid illustrations of how hard life can be as a Golden State renter, especially when compared with homeowners.

Not only are tenants typically poorer than owners, but their hopes of getting ahead are also diminished. That’s not a good financial formula in a state where a typical apartment rents for $1,967 a month, the second-highest rent in the nation, according to Apartment List.

Calif. renters pay an avg. of 32% of their income toward rent, a monetary burden topped by only 3 other states, Census Bureau statistics show.

The poll details how the tenuous finances of renters are further muddled by the pandemic era’s business limitations and economic twists.

California remains 900,000 jobs short of pre-pandemic employment levels, with many of these lost positions coming from lower-paying industries that typically employ renters.

Such workplace difficulties translate to 24% of renters having someone in their household losing a job in the past year vs. 16% of homeowners.

And 17% of renters worry almost daily or more about future job losses versus 12% of owners. Now, most renters aren’t enjoying dream jobs, with just 35% saying they are very satisfied with work vs.  38% of owners.

One annoyance: Unstable hours are a pain for 21% of renters versus 17% of owners. Plus, a shortage of good-paying jobs further clouds the picture, with 26% of renters saying it’s a “big problem” versus 20% of owners.

And there’s not much hope for career advancement: 42% of renters’ current workplace offers no growth opportunities versus 37% of owners.

“Cashed Out”

Employment impediments translate to cash problems, with 22% of renters reporting worsening personal finances vs a year ago versus 15% of owners.

No surprise, the cost of housing is a major headache, with 39% of renters worrying almost every day or more versus 16% of owners. That’s likely because 24% of renters admit their households had difficulty paying rent versus 10% of owners who had mortgage troubles.

That’s in line with 26% of renters with serious worries about bills versus 14% of owners.

Consider other renter-vs—owner financial complications of the past year.

Medical? 23% of renting households put off getting health care help because of finances versus 4% of owners.

Food stamps? 26% of renting households got them versus 9% of owners.

Unemployment benefits? 33% of renters got jobless aid vs. 23% of owners.

Odd Optimism

Despite the dismal finances, renters’ expectations are curiously upbeat;

36% of renters think their families will be better off versus 23% of owners in the coming year. 

And looking further ahead, 42% of renters say California children will be better off than their parents versus 31% of owners.

Still, cash flow may nudge renters out of California.

Of course, it’s easy to talk about exiting. It’s another thing to do so when only a small slice of California’s population actually left for elsewhere in the nation over the last decade.

Yet money talks. When asked how hard it is to get $1,000 quickly for an emergency, 28% of renters said “very difficult” or “nearly impossible” versus 8% of owners.

And that explains who’s monetarily unhappy in California: 32% of renters say they’re financially dissatisfied, more than double the 15% of cash-challenged owners.