Hand putting Coins in glass jar with retro alarm clock for time to money saving for retirement concept Adobe Stock / pinkomelet

California's housing costs are high--so astronomical in fact that even full time employees are having trouble affording rent on a steady salary.

Many residents have had to turn to second jobs, like driving for Lyft, in order to make ends meat, writes Eric Pape for Fast Company.

In Los Angeles, nearly 3 in 5 tenants are “cost-burdened,” meaning they pay more than 30% of their income on rent, and statewide, 3 million households pay at least that much, with 1.5 million spending at least half of their earnings on housing. Paying too much rent can have an adverse impact on residents’ current and future prospects, as it can prevent them from addressing health problems, saving money, starting a business, or even preparing for retirement.

The typical renter in California has nearly 20% less of their income to spend on other things, or to save for retirement. When rent consumes too much of people’s incomes, argues University of Southern California sociologist and economist Manuel Pastor, it handicaps innovation.

If rents go up but incomes don’t, tenants generally go into debt, tighten their belts elsewhere, or both—meaning that they don’t spend money on other things that are more likely to bolster a truly dynamic economy.

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