California is the nation’s most unaffordable state, GOP says. Is that correct?
AI-generated summary reviewed by our newsroom.
- Republicans call California most unaffordable; WalletHub and U.S. News concur.
- High housing costs drive low affordability, while income and taxes vary statewide.
- Quality-of-life metrics lift California in broader rankings despite price pressures.
Republicans are calling California “the most unaffordable state.” Some independent analyses agree.
But there are asterisks.
While California does rank last in affordability in rankings by analysts WalletHub and U.S. News, it ranks significantly higher when other quality of life factors are involved.
“California’s rankings show that affordability and quality of life don’t always move in the same direction,” said Chip Lupo, writer and analyst at WalletHub, a financial services firm.
California scores low on affordability because of its high housing costs, but scores very well “in quality of life thanks to strengths in areas that aren’t directly tied to price, such as access to restaurants and recreational activities, shorter average work hours, strong public transit in some areas, and favorable weather,” Lupo said.
Affordability has become a favorite political talking point. Both political parties claim their opponents are making it more difficult for people to afford housing, food and other essentials.
In assessing one of the newly drawn Sacramento area congressional district’s House races, Republicans cited affordability as an issue in their favor.
“Out of touch career politician Ami Bera spent years rubber-stamping the radical Democrats’ agenda 99% of the time, making California the most unaffordable state,” Christian Martinez, spokesman for the National Republican Congressional Committee, told The Bee last week.
Bera, D-Elk Grove, is running for re-election in the new 3rd District, which was redrawn to center largely on the Democratic-dominated Sacramento area. Bera could be running against Rep. Kevin Kiley, a Republican who now represents the district.
Why California is last in affordability
Martinez cited the U.S. News study ranking states for affordability. California ranks dead last. Arkansas topped the list.
The ranking considered the overall cost of living and housing costs compared to the rest of the nation.
Another independent study, by WalletHub, also ranked California last for affordability.
Its ranking considered several factors: housing affordability, median annual property taxes, cost of living, median annual household income and homeownership rate.
Earlier this year, Bankrate studied the cost of housing in the states. Hawaii topped the list with a median price of $975,500. Next came the District of Columbia at $920,000, followed by California at $866,100.
“The cost of living in California is notoriously high, and housing costs are a big driver of those elevated expenses. Of course, you get what you pay for, and to many, a Pacific coast getaway or desert retreat is worth the price,” said the analysis by David McMillin, a personal finance contributor to Bankrate.
But it also added that “this state is massive, and while you probably won’t find a bargain in, say, Malibu, the Calilfornia housing market has plenty of budget-friendly options too, particularly inland.”
California and its quality of life
Here’s the other side: The same ranking groups push California up on the charts for other reasons.
WalletHub ranks California second in the country for quality of life, behind only New York.
The quality of life score includes average hours worked per week, average commute time, miles of trails for bicycles and walking, quality of roads, restaurants, bars, museums, performing arts centers, movie theaters and fitness centers per capita. It also includes access to beaches.
U.S. News ranked California in the top half of the country for its education system, health care and natural environment.
Overall, including the affordability metric, California ranks 32nd out of 50 on the “best places to live” WalletHub ranking and 37th in U.S. News’ overall ranking.
“So while the high cost of living certainly creates challenges, California’s lifestyle amenities, natural environment, and cultural offerings are strong enough to offset those financial pressures in the overall ranking,” said WalletHub’s Lupo.
This story was originally published November 17, 2025 at 11:12 AM with the headline "California is the nation’s most unaffordable state, GOP says. Is that correct?."
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