Assembly hearing highlights inflation and housing as central drivers of California affordability crisis

The Assembly Committee on Economic Development, Growth and Household Impact convened an informational hearing in Room 127 to examine rising costs and household impacts across California, hearing from academic researchers, the Legislative Analyst's Office and state economic advisers.

The panelists told lawmakers that inflation since the pandemic, persistently high housing costs and elevated energy prices are the most immediate affordability pressures, while long-term wage stagnation for lower- and middle-income households compounds the challenge.

"Inflation is really the primary driver of the recent kind of major concerns Californians have about the economy," said Sarah Bone, vice president and director of economic policy and senior fellow at the Public Policy Institute of California. Bone told the committee that, after the pandemic spike,…