By Laura Curtis | Bloomberg
Seven out of 10 Californians think kids growing up in the Golden State will be financially worse off than their parents, according to a statewide survey by the Public Policy Institute of California.
The 71% of adults who share the grim outlook is a record high for the survey, which is in its 25th year. Just 50% of Californians held the same view five years ago.
At the same time, 72% of Californians said they are satisfied with their household’s financial standing and 54% of likely voters said they approved of Governor Gavin Newsom’s handling of jobs and the economy.
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More than half of adults surveyed think things are generally going in the wrong direction in California, and six in 10 likely voters predict bad economic times in the next 12 months.
The sentiment in California mirrors the rest of the nation. Despite strong economic growth and a resilient job market, more middle-class Americans are worried about the state of the economy than a year ago, according to a recent Harris Poll for Bloomberg News. Higher prices for food, gas and rent continue to stretch budgets — the typical American household spends about $730 a month more than last year, according to Moody’s Analytics.
The pessimism comes alongside a worsening housing affordability crisis in the Golden State, already among the nation’s costliest housing markets. The Federal Reserve has raised its key rate to fight inflation, making borrowing more costly for home buyers. At the same time an inventory shortage has propped up prices.
Eight in 10 Californians said they thought the availability of well-paying jobs in their region is a problem, and 21% said the issue has caused them to consider a move out of state. Almost half of lower-income adults under age 35 said they’ve considered moving because of a lack of well-paying jobs.
About half of households earning less than $20,000 said they have been unable to pay a monthly bill or had difficulty paying their rent or mortgage. Three in 10 renters said they have had difficulty paying for housing, compared to 9% of homeowners who said the same.
The survey of 2,250 adults, which includes 1,395 likely voters, was conducted from Oct. 3-19.
