High California Rents Help Drive State’s Poverty Rate

California’s housing costs are closely tied to its poverty picture. The standard poverty measure puts the state at the national rate of 10.7%, but a separate calculation that includes housing expenses raises California’s figure to 17.8%—second nationally, behind Louisiana. Pew Charitable Trusts estimates that matching the country’s average rent would reduce California’s overall poverty rate by 30% and lower child poverty by 36%.

The analysis shows why income alone does not capture household pressure. CalFresh benefits grew by $13.1 billion from 1989 through 2023, yet higher rents absorbed 78% of that increase. For Simi Valley households, especially parents paying for housing and food at the same time, rent levels can determine how much help actually reaches the rest of the family budget.

Pew also modeled a 20% rent reduction, which would cut child poverty by about one-quarter. Similar declines in typical rents occurred in Austin and Minneapolis between 2021 and 2025 after local rules supported more homebuilding. Those measures included allowing denser development, easing parking requirements and promoting accessory dwelling units. California has adopted comparable policies, though they have not yet produced a major statewide surge in housing construction; supporters expect more building ahead.