Housing cost burden is linked to poor health outcomes, preventable deaths, and housing instability or homelessness1
Housing is considered affordable when the cost of housing makes up 30% or less of a household’s income.2 Housing cost burden happens when a household spends more than 30% of income on housing, which leaves less money left over to cover other necessities like food, transportation, and health care.
This indicator tracks the percent of households in California that experience housing cost burden.
Housing Cost Burden
In 2022, 40.9% of households in California experienced housing cost burden. The most recent data available show 40.9% (2022). We hope to reach a target of 31.3% of California households or lower experiencing housing cost burden by 2034.
Baseline
40.9%
Target
31.3%
Indicator Highlights
Renters have higher rates of housing cost burden than homeowners.3,4 In 2022, 83% of rented California households making less than $75,000 a year were housing cost burdened, relative to 59% of owned households. Among low-income households that made less than $35,000 annually, 92% of rented households and 72% of homeowners were housing cost burdened.
Housing cost burden is a risk factor for eviction, foreclosure, and homelessness. Households with higher housing cost burden are more likely to experience material hardships such as food insecurity and delayed medical care that negatively impact well-being.4,5
Rent control policies reduce housing cost burden by making rent more affordable, and rent control is a protective factor against the higher risk of death associated with housing cost burden.1,6
Older low-income renters with severe housing cost burden are more likely to have limitations on activities of daily living and are more likely to move to a nursing home without medical need.7,8
Increasing the supply of affordable, high-quality housing and providing housing support services can prevent housing cost burden.4
Data Snapshot
Unaffordable housing in urban areas can push residents into rural areas, pricing locals out of the housing market.10
Housing is often more affordable in fire-prone areas near forests or other vegetation.10 Wildfire exposure is linked to premature death, respiratory disease, and cancer.11 Structure loss from wildfires puts further strain on housing supply.10 These risks are increasing in warming and drying climate conditions.10,11
There are racial and ethnic disparities in the rates of housing cost burden. Black and Latino households have higher rates of housing cost burden relative to White and Asian households. The impacts of the COVID-19 pandemic worsened these disparities.9
Both younger (under 25 years old) and older renters (over 65 years old) are more likely to be housing cost burdened.3
Housing cost burden increased after the COVID-19 pandemic began, and hit an all-time high in 2022 for renters.4
Percent of Californians with Housing Cost Burden, Over Time
Percent of Californians with Housing Cost Burden, by Demographic Category
Percent of Californians with Housing Cost Burden, by Location
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