Despite being home to major tech hubs and experiencing robust economic growth, California recorded the highest poverty rate in the United States in 2024, according to data released by the U.S. Census Bureau. Nearly 7 million residents—more than the combined populations of Los Angeles, San Diego, San Jose, and San Francisco—struggled to afford basic living expenses. The state’s poverty level reached 17.7 percent, placing it at the top nationally alongside Louisiana.
The data highlights a growing disparity between economic output and household well-being. Researchers at the California Budget & Policy Center attributed the worsening situation to the expiration of pandemic-era financial supports, particularly the expanded Child Tax Credit, which had significantly reduced child poverty. Since 2021, child poverty in the state has surged from 7.5 percent to 18.6 percent.
Seniors are also disproportionately affected, with 21.1 percent of those aged 65 and older living below the poverty line—the highest rate among all age groups. Elevated healthcare costs are a key factor in their financial strain.
Housing affordability remains a central challenge. While the U.S. Department of Housing and Urban Development reported an average two-bedroom rent of 1,749 dollars per month in California, actual market rates range between 2,199 and 2,825 dollars, far exceeding the national median of approximately 1,400 dollars. Studies suggest that if housing costs in California were in line with the national average, the state’s poverty rate would mirror the rest of the country.
In 2024, 27.1 percent of renters in California lived in poverty, compared to 11.1 percent of homeowners. Latino and Black renters faced the most severe hardship, with poverty rates of 30.9 percent and 30.5 percent, respectively. Experts emphasize that high incomes in certain sectors are often offset by the steep cost of living, especially in urban centers.
— news from Xinhua
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Roundup: California faces nation’s highest poverty rate despite economic prosperity
California continued to lead the United States in poverty rates despite the Golden state ‘s economic prosperity, with nearly 7 million residents unable to meet basic needs, according to the U.S. Census Bureau ‘s poverty data released Tuesday. n nSACRAMENTO, the United States, Sept. 11 (Xinhua) — Despite its reputation as an economic powerhouse, the U.S. State of California is still grappling with severe poverty, as rising housing prices, along with the expiration of pandemic-era support, have deepened financial hardships — particularly for children, seniors and marginalized communities. n nCalifornia continued to lead the United States in poverty rates despite the Golden state ‘s economic prosperity, with nearly 7 million residents unable to meet basic needs, according to the U.S. Census Bureau ‘s poverty data released Tuesday. n nThe western state ‘s poverty rate reached 17.7 percent in 2024, placing it among the highest in the country alongside Louisiana. This figure represents approximately 7 million Californians — a population larger than the combined residents of Los Angeles, San Diego, San Jose and San Francisco, it said. n nThe persistent poverty crisis struck California ‘s most vulnerable populations hardest, it showed, noting child poverty more than doubled since 2021, rising from 7.5 percent to 18.6 percent in 2024. This surge followed the expiration of expanded federal Child Tax Credit that had provided crucial support during the COVID-19 pandemic. n nElderly Californians also struggle hard, with 21.1 percent of adults aged 65 and older living in poverty — the highest rate among all age groups. Higher medical expenses contribute to their economic hardship. n n”These figures reflect a troubling trend that began with the rollback of historic anti-poverty investments,” said researchers at the California Budget & Policy Center, a nonprofit policy organization. n nCalifornia ‘s economic paradox — high poverty amid technological prosperity — highlights how expensive living costs can negate income gains. While hosting major technology companies and maintaining strong economic growth, the state struggles with the nation ‘s most severe affordable housing shortage. n nAccording to the U.S. Department of Housing and Urban Development ‘s 2024 Fair Market Rent data, California ‘s average two-bedroom rental is 1,749 U.S. dollars per month, while recent market reports showed actual median rents range from 2,199 to 2,825 dollars monthly, depending on the data source. n nThe national median rent stands at approximately 1,400 dollars, according to Apartment List ‘s National Rent Report. Research also showed California would have poverty rates similar to the national average if its housing costs matched typical American levels. n nMore than one-quarter of California renters — 27.1 percent — experienced poverty in 2024, compared to 11.1 percent of homeowners. Latino and Black renters faced the highest poverty rates at 30.9 percent and 30.5 percent, respectively.■