California fares better than the nation as a whole in recession, USC report shows

Despite soaring unemployment, California and Los Angeles County have fared better on many indicators during the recession than the nation as a whole, according to a report released Tuesday by USC.

The study, titled "California Roller Coaster: Income and Housing in Boom and Bust, 1990-2010," used data from the U.S. census and other sources to compare measures, such as employment growth and homeownership between the recession of the early 1990s and the recent Great Recession.

The study found, for example, that the poverty rate in Los Angeles County peaked at 23.8% in 1993, compared with 16% in 2009.

The study also showed that household incomes in Los Angeles County soared above the national average by 8.3% in 2009 and that, despite the economic downturn, median household income in home values and real dollars grew over the last decade.

It also found that of those hardest hit by the recent economic downturn, young adults fared the worst. About 20% of 16- to 24-year-olds looking for jobs were unemployed in 2009, and homeownership rates dropped 5.4% from 2006 to 2009 for those 25 to 44.

“The younger generation was especially damaged by this cycle of events and some of them may have been permanently dislodged to the status of renters,” wrote Dowell Myers, USC professor and lead author of the study.

"But we might hope that the reduced house prices also have lowered the barrier to homeownership for countless others," he added.

ALSO:

LAPD's massive 'Batcat' used to protect officers in Sylmar standoff

Orange County DA wants sex offenders banned from beaches, parks

Crime alerts for Elysian Park, Carthay and 17 other L.A. neighborhoods

-- Ari Bloomekatz

Photo: For sale signs line a residential street in Adelanto in San Bernardino County in 2009. Credit: Robyn Beck / AFP/Getty Images

Comments

[Marcy]

Homeownership as a barometer? Yeah. That worked out so well for everyone the past 8 years, as we are seeing and feeling now.

[Anotherwhiner]

I always assumed USC was a reliable source for accurate and and insightful analysis.

[Don Pedersen]

Somebody is living in a different world than the one I live in. I am working two jobs, my wife is working full time, our income is 30% of what it was two years ago, out sales tax is near 9%, and our car license fees have doubled. Food prices are increasing, gas prices are the highest in the nation and we have the highest unemployment rate in the nation and this idiot writer calms we are doing better?

[dee gee]

i go to the movies and i ask myself: "what recession?" the theatres are all PACKED! i go to universal city walk...PACKED! .... try going to a lakers game...PACKED! even the cheesecake factory....45 min wait! disneyland...etc. etc.... for all you CALIFORNIA HATERS: just another reason to HATE CALIFORNIA! ha ha haaaaa

[JC]

Because NO ONE ever lies when they take a survey. I would believe there is a large margin of error in these studies.

[Aaron]

Those bemoaning about the recession in California are probably the same people that keep buying gas guzzling SUVs, then cry that they can't afford to fill the tanks up with gas. We hear from these same people every time gas prices go up 10 cents.

I was laid off from my job, but instead of complaining about it I did something about it. I went back to school to update my skills, signed up for an internship, and here I am happily employed.

You can blame taxes, illegal immigrants, gas prices, democrats, or whatever you want all day long, but at the end of the day you are responsible for your own employment.

[Cougar]

There will always be people with money out there spending. The poor ones go to McD's for there weekly splurge.

[Carol]

Uhhhh, who are these people kidding? There are no jobs and I just finished preparing my taxes and I barely received any credit for owning a home here. I just hope that Moonbeam doesn't get his hands on Prop 13, that's the only thing that gives California any kind of affordability. I think the only people who are not complaining, do not own property in this state and are not in need of a good job.

(The Insane EPA with it's ridiculous restrictions are driving corporations out of California). Mark my words, when the republicans take control of this state again, California will be a much nicer place to live.

PS. I'm betting the only incomes that "soared" are public sector worker and we the taxpayers of California are being taxed to death to support them and their extravagant pensions and that is and HUGE point and something this article neglected to clarify.

[swhitS]

Not worth commenting about. The people know what is going on rather than this stupid hype.

[Vikram]

@Don Pederson: Unfortunately, you are not the only person living in California. If someone's income was more than 30% of what it used to be, they have made up for your loss in the grand scheme of things.

@Marcy: Nailed it!

[deliberate]

The problem is that most people are average, and Southern California is a place for the superstars, the leaders of the pack, not the average guy. So most of your readers (like Don Pedersen) are average working type guys, not intellectual and business leaders and investors who have continued to see their standard of living rise, even during the past 3 years of the Great Recession. Why? Because our income primarily results from our investments, not selling our finite amount time for a fixed rate to some boss from 8 to 6 Monday through Friday.

And it's a choice you can make to live one way or the other, but every thing has sacrifices attached to it, and unfortunately most people aren't willing to make those sacrifices. Much easier to just blame everything on "illegal aliens", while your life continues to deteriorate. You could round them up and deport them all, and the losers would still be losers and continue whining and the winners will continue winning!! And winners never look to scapegoat someone else for their failings.

[Kim]

Big news for Deliberate - Quality of life cannot be purchased with money. I'm guessing you live on the west side. You are proof that Southern California is not the breeding ground for any great intellect. Anyone can pick a good stockbroker. And if you are truly living off said investments, good for you but for the rest of Southern California, I'm guessing dealing with having their kids in public schools that stink, seeing their taxes go up continually while elitists like you have never met a tax loophole you didn't rape and pillage is enough for them to conclude their quality of life stinks. We can gripe about illegal aliens because it is a real problem, if you can't perceive that - then please go back to my statement about Southern California not being a breeding ground for any great intellect. Quality of life is important to real people Deliberate, and in Southern California where we have a Mayor who spends most of his waking hours worrying about how to keep illegal aliens draining the funds out of this city and where we have a populace that stands by while a man from Northern California gets his head kicked in..at a Dodger game no less. Deliberate, I'm sorry but if your life is so grand that you think your post was in any way informative or helpful then your mother did a great job raising a completely class-less individual. I know for a fact that average guys like Don Pederson are worth 10 of guys like you...you are no doubt your biggest fan.

[michael]

One of the most enjoyable parts of good economic news is watching the Grand Old Prevaricators either deny the news, or spin it into something negative.

[US Times]

This is propaganda as its best. The writers of the report are obviously non residents, CA business owners or taxpayers. Then again, what should we expect from a respected private university.

They must have been interfering the students parents.

[Therese S.]

I've been doing OK, but I did not buy a house or a car, I already rent, and my job has held steady enough to live on. I feel very lucky so far. I'm in my mid-50's with another couple of decades of work in me.

[Robby Paulus]

I've been living in California before, such a nice place to live in.....and still.

[observer]

YEA RIGHT. it is all relative to what you compare it to. California is broke and in trouble. IF that means we are doing good then we are doing great!!!!!!!
MEDIA SHOULD BE HELD RESPONSIBLE FOR their part in the break down of society. slowly and surely people are stressed to read or watch the news,
it is a spreading of bad news in our society that has an awful effect on humans.
Stress has the cortisol flooding our systems all day long and tearing down our immune systems at the very least. that is exactly what we do not want to happen if we need to fight off radiation exposure, gang members, whooping couch, bad credit ............