‘The Poor Are in a Very Bad State’: Climate Change Accelerates California’s Cost-of-Living Crisis

When California adopted a law to regulate greenhouse gases 23 years ago — the first state in the nation to do so — it focused on the future dangers of global warming. But while California’s emissions have declined, they have kept rising globally, and the climate has worsened. Now, in an effort to build back momentum, advocates are bringing attention to current-day harms driven by climate change.

Among those affected by rising temperatures is Amanda Nevarez, who was left homeless by the Eaton Fire, one of two wildfires in Los Angeles County that together destroyed more than 16,000 homes and buildings and killed 31 people last January. 

Nevarez now sleeps in a trailer just big enough for a bed, parked at a garage in South Los Angeles where her friend transforms old cars into electric vehicles. The fire accelerated the decade-long displacement of tenants like her from Altadena due to rising housing costs.

The blaze had several causes, including an unusual lack of rain, a condition blamed on climate change. Using weather data collected since 1950, scientists ran simulations showing the conditions that dried out the foothills were 35% more likely because of global warming.

Nevarez’s life in the tight-knit community was upended after smoke left her rented home uninhabitable. The movie director has relocated more than a dozen times, burned through two cars and had to give up nearly all her possessions. Available work in the film industry has been nearly nonexistent, while local rents remain stubbornly high.

“I’ve always had to adapt,” Nevarez said, recounting challenges like the Hollywood writers’ strike in 2023. Reduced government assistance for food  made her life harder. “It’s just a chain reaction of things piling up.” 

Her experience shows how climate change is worsening California’s suffocating living costs, a reality frequently glossed over in politics today. 

Amanda Nevarez. Photo: Aaron Cantú.

Democrats, who hold a supermajority in California, no longer trumpet policies to fight climate change, an analysis by the Washington Post found. While research shows most Americans are concerned about climate change, a December poll by the Public Policy Institute of California found only 4% of surveyed likely voters said the environment and climate change were the “most important problem” facing the U.S. Elected state officials and those seeking office are emphasizing pocketbook concerns.  

Yet there’s a different way to view the issue than as a choice between tackling high prices or fighting climate change. 

“You can’t solve the affordability crisis without solving the climate crisis,” said Noel Perry, the founder of Next10, which co-produced a report with UC Berkeley that identified the costs of global warming in everything from homelessness and rent to energy bills and groceries. He and other climate campaigners are trying to recalibrate their messaging to that political reality.

It’s true that California’s policies to discourage fossil fuel use add to costs. Power bills and gasoline are more expensive here than elsewhere in the country, which the state compounds by taxing to pay for grid upgrades in order to wean itself off oil and gas. Oil refineries and power utilities pass those costs on to consumers, widening income inequality, the state has said. 

But climate pain is now a fact for many, added to the long list of other crises people face — inflation, mass deportations, housing prices and a frayed government safety net. 

Heat, Drought and Floods

Rising temperatures, the clearest impact of climate change, are driving up home energy costs. 

California faced its hottest summer on record last year, when Los Angeles broiled in summertime heat exceeding 110°F. Each additional day above 95°F increased the chance that the power to low-income households would be disconnected, as energy bills inch up an additional $20 to $30 a month, according to a 2022 UCLA study. Los Angeles DWP Chief Financial Officer Ann Santilli told NBC Los Angeles that bills “are very much driven by the weather.” 

Among the state’s most energy burdened communities is a heavily Latino enclave in the San Fernando Valley, an area often exposed to the hottest temperatures in Los Angeles County. Residents of Arleta spend 6% of their monthly income on power and gas, impacting woman-led households the most, according to research by the Gender Equity Policy Institute. 

Sitting among roughly 150 people gathered on a dusty church lot waiting to enter a food pantry in Arleta, a woman named Maria, who gave only her first name as she rushed inside, lamented high living costs and a lack of jobs. “There are rich people who live well, but the poor are now in a very bad state,” she said. A former assembly line worker for an aerospace company, she said she and her adult children now pool together their  meager incomes. 

Inside the small wood-paneled building, visitors shuffled past a mound of bread piled on a table and trays with potatoes and fruit stacked high. A lanky youth offered a warm smile and wildly varied surplus foods, from lasanga noodles to pickle mayonnaise, while early arrivals scored half cartons of eggs placed carefully in their bags. Lately, more people have started showing up at the pantry, a volunteer said. 

Poverty surged when the U.S. did not renew pandemic relief efforts such as unemployment and rent assistance. Driven by high living costs, California has a higher share of residents living in poverty than any state except Louisiana. At the same time, a typical $100 grocery bill in 2019 now costs $130 in the state, partially a result of crop disruptions caused by drought and heat in Florida, California and elsewhere. 

The squeeze is tighter for workers lacking permanent legal status, who aren’t eligible for federal public benefits programs and risk being detained when they leave home for work. “I think they’re going to evict us because we can’t afford the rent anymore,” said pantry visitor Guadalupe Salazar, a home health care aide whose husband stopped working as a gardener for fear of being swept up in the federal immigration raids.

Other research shows people hit hard by drought and floods. One study found that during a severe drought in 2015, the poorest residents of Glendale in Los Angeles County, with households earning less than $10,000 a year, spent 6.5% of their income for water, compared to 1.5% for households earning the median income of $52,451.  

Further north, in the San Joaquin Valley farmworker town of Planada, where many residents lack permanent legal status, heavy flooding in 2023 left almost a quarter of the residents behind on bills and rent.

After the Flames

Los Angeles fires ranked as the world’s costliest disaster zone in the first six months of 2025 — far worse than Myanmar, where there was a big earthquake, or Brazil, where there was a severe drought. But since 2017 wildfires have frequently caused tens of billions of dollars in property damage, lost wages and health care costs each year.

The fires also drive up power bills. Ratepayers of Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric saw a rise of between $12.97 and $24.42 for a “Wildfire Fund” surcharge. The fund is raising $21 billion to pay out claims to victims of fires sparked by power lines. A new law increases it by an additional $18 billion through 2045, half from ratepayers and the rest from shareholders. Home insurance premiums, too, are shooting up due to rising fire damage.

For now, paying rent and power bills aren’t things that Nevarez needs to worry about. Instead she worries about mold — cleaning it and breathing it from the walls of her trailer. Most of it is now gone, but a damp smell lingers. She runs an air purifier at night.

To use the bathroom, she has to enter the garage, stepping past a yellow Ferrari spilling its wiry guts. The owner of Left Coast EV, Rev. Gregory “Gadget” Abbott, is preparing to install a salvaged battery pack and motor in place of the powertrain engine. The two friends met at the annual Burning Man festival. They enjoy each other’s company, sometimes cooking communal dinners with roommates using vegetables from a rooftop garden.

Nevarez, right, chats with Rev. Gregory “Gadget” Abbott at Left Coast EV. Photo: Aaron Cantú.

“I’m trying my hardest to lay out tracks in front of me to go forward,” said Nevarez, who said she feels like she’s fallen through the cracks. But with help from Abbott, she can work on film projects without the daily grind of just trying to survive. “If it wasn’t for him, I don’t know where I’d be today.”

Amid converging affordability crises, some advocates are looking to energy and insurance companies to foot a big chunk of the climate bill.

Climate groups want to compel oil and gas companies, whose products heat the planet, to deliver reparations, including cash payments for those who’ve suffered from climate change. Consumer Watchdog, a nonprofit that fights for consumer rights, sent a letter to Gov. Gavin Newsom urging the state to pull wildfire compensation dollars from utility shareholders instead of ratepayers and force insurers to expand fire coverage.

But it’s an uphill climb. Legislation known as the Climate Superfund Act, a potential first step for making polluters pay for climate damage, stalled in Sacramento last summer before being shelved. While politicians, including some Democrats, take a step back, global temperatures continue to rise, upending lives in ways that continue to multiply.

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