California remains one of the most expensive states in the nation to live and do business. From housing to insurance, taxes, and regulatory mandates, nearly every cost that shapes daily life and housing operations runs higher here than elsewhere. These costs directly impact affordability and the overall cost of living for Californians. Rising insurance premiums, increasing property taxes, utility costs, and layers of compliance with ever-expanding state and local mandates have all contributed to the state’s housing affordability crisis.
If California is serious about addressing its affordability challenges, it must begin by examining and reforming the policies that drive up the costs behind every dollar of rent. Real progress on affordability starts with reducing unnecessary financial and regulatory burdens so that more resources can go toward building and maintaining quality, attainable housing for all Californians.
Why is Rent So High?
According to industry data, 93 cents of every dollar in rent goes toward expenses such as mortgages, property taxes, insurance, maintenance, payroll, and reserves for building upgrades. The return on investment is only seven cents, much of which supports small housing providers. In other words, most rent dollars are used to keep rental housing safe, well-maintained, and financially viable.
Why is Rent So High?
According to industry data, 93 cents of every dollar in rent goes toward expenses such as mortgages, property taxes, insurance, maintenance, payroll, and reserves for building upgrades. The return on investment is only seven cents, much of which supports small housing providers. In other words, most rent dollars are used to keep rental housing safe, well-maintained, and financially viable.
Taxes
California ranks as the fourth worse state in the nation in terms of its state and local tax burden. On average, for every dollar earned 13.5 cents goes to taxes with a total tax burden of $10,167 per person.
The worst state is New York with a state and local tax burden of 15.9 cents for every dollar and a per capita tax burden of $12,083.
