(The Center Square) – California utility prices have increased 51% more than then national average, while California rents have increased 21.6% less than national average, according to a new inflation report from the state Legislative Analyst’s Office on price changes since January 2020.
Overall inflation in California remains 7.3% lower than the United States average since January 2020, largely due to lower housing inflation. Rent costs nationwide grew 25.9%, compared to 20.3% for California.
One major factor in California’s lower rent increases is the state population, as California continues to have the highest level of net out-migration of jobs in the country.
According to an analysis of U.S. Census data from the Orange County Register, California lost a net 268,052 residents in 2023, which is 73,814 fewer than in 2022. Assuming a similar rate of improvement in population loss, California could be on track to lose a net of 210,000 residents this year.
Additionally, IRS data reveals individuals moving to California are poorer than those moving out, further limiting how much landlords can raise rents.