California has 1.07 million households paying at least $3,000 a month to a landlord, and that flock has more than doubled in four years.
For starters, let’s note that high rent is no surprise to Californians. It ranked No. 1 in overall rent costs by census math for 2023 at $1,992 a month – 42% above the nation’s $1,406. Next was Hawaii at $1,940, Washington D.C. at $1,904, Colorado at $1,771, and Massachusetts at $1,757. Golden State rivals Texas was No. 18 at $1,413 and Florida was No. 7 at $1,719.
California also led the nation in 2023 in households paying $3,000 or more a month for rent. It’s home to 37% of the 2.9 million Americans paying that much to their landlord. It’s got more high-paying tenants than the next five states combined – New York, Florida, Massachusetts, Texas and New Jersey.
Plus, this high-priced housing is swelling. During the previous four years, the $3,000 club in California grew by 587,787 households – the largest jump in the nation and equal to one-third of the 1.8 million US additions to the group.
Numerous factors nudge California rents skyward. Above-average paychecks can often afford to pay this much. And the state was an already heavily competitive market for housing – before the pandemic rearranged how people lived. Rents jumped further.
Also, many California families can’t afford ownership, so they rent pricier houses.
Yet, do not overlook that Golden State landlords have been pioneers in the art of luxury rentals. This premium product offers folks who can afford to buy many of the comforts of ownership – without the numerous hassles.
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