The diversity of the state's local economies gives rise to a diversity of housing problems. California Suffers From a Lack of Affordable Housing Far and away, affordability is the most significant housing problem confronting California's families. Housing constitutes the single largest expenditure for most California families. While adequate shelter is fundamental to a decent life, a roof over one's head is becoming increasingly unaffordable for many California families. A total of 2 million renter households paid more than the recommended 30 percent of their incomes toward shelter.
All indications suggest that the situation has grown worse over the past three years.
Rental housing costs increased 14 percent in Los Angeles and 38 percent in San Francisco between 1989 and 1998, while the income of the median renter household increased by 9.6 percent and the median income of renter households with children increased 6.3 percent. Only 55.7 percent of California households owned their own homes in 1999, compared to 66.8 percent for the nation as a whole. The median California household earns less than two-thirds the income needed to purchase the median priced home. In fact, homeownership rates are down among all age groups except for households headed by seniors. This is true even controlling for differences in household income.