A recent analysis, conducted by the Brookings Institute in the city of Salinas, near California, revealed the severe housing crisis facing Americans in general, especially those who belong to the middle class. The institute chose the city because it was described historically as the “Land of Eden,” due to its extreme fertility and its suitability for living in the middle class and the elderly.
Today, all that has changed; The analysis revealed that the city of Salinas today is the least suitable in terms of cost of living for the middle class in the United States (which is the group that falls in the middle 60% in terms of income).
According to the analysis, nearly 60% of the middle class in the Salinas region - which includes families with annual incomes between $38,000 and $193,000 - are unable to provide basic needs, a percentage that is twice the national average. As for middle-class Latinos in Salinas, who constitute 40% of all middle-class families, three-quarters of them have difficulty affording the costs of daily living.
Residents in particular point out that owning a home - the modern symbol of the "American Dream" - has become out of reach. This issue is a general phenomenon witnessed by the entire country. The latest US Census data shows that half of renting families and about a quarter of homeowners spend more than 30% of their income on housing.
“This raises a fundamental question: What is the middle class?” says Andre Berry, a senior fellow at the Brookings Institution who supervised the study. Many cities that were once havens for the middle class - such as Salinas - are now out of reach; “People come to Salinas looking for an escape from San Francisco and other expensive cities, but they actually find the cost of living there increasingly difficult.”
It is not easy to find solutions to this crisis; The high cost of living has torn apart the social fabric of Salinas, while the pace of new housing construction is slow, and rent stabilization has deeply divided residents.
If life in cities like Salinas becomes too expensive for American families, where will they go next?
Some city residents have cited concerns that they may have to move due to the cost of living. Salvador Herrera (52 years old), a former construction worker who grew up in Salinas, says that his childhood days - when the family was able to raise their children in an apartment or a private house - are over; It is now common in Salinas for several families to share a space, with garages divided by curtains, bedrooms crowded with children and parents, and bathrooms shared by dozens of people.
Herrera supports his family through the disability benefits he receives after suffering a work-related injury that prevented him from continuing his profession. The high rents sometimes led to weeks in which he had only $50 to buy food supplies for himself and his two children. “Everything has changed, especially housing, which has become very expensive, while wages are low these days,” he says.
Housing experts believe that Salinas's close proximity to Silicon Valley makes it vulnerable to the same housing crises as the rest of the Bay Area.
The agricultural lands surrounding the city hinder expansion and construction operations there. All of this has led to a chronic shortage of housing supply, causing prices to soar for years. Meanwhile, the median household income in Salinas is nearly $90,000, compared to an average of nearly $150,000 in San Jose or San Francisco.
Salinas Mayor Dennis Donohue said while he was at the Starbucks across from the Salinas Sports Complex to attend a conference on agricultural biotechnology: “We were early influenced by the economic dynamics of the Gulf region, as we find that all the economic challenges facing that region cast a shadow over Salinas and its surroundings, without corresponding economic opportunities.”
All of this pressure comes at a time when California is implementing some of the most progressive housing policies in the United States, including caps on rents for most families at the state level and additional protections at the local level. However, residents still face the highest average monthly housing costs in the country, according to the latest Census data.
Critics from across the political spectrum have blamed the state's governor, Gavin Newsom, for the state's cost-of-living crisis, including skyrocketing housing costs. Although Newsom - who is considering the option of running for president - has held Trump responsible for the situation, voters - and his political opponents - are likely to point the finger directly at him as he is most responsible for the event.
At the same time, housing is one of the most influential issues in the elections; A recent poll conducted by CNBC showed that rising housing costs represent the greatest concern for voters between the ages of 18 and 34 years.
The Salinas City Council provided a lifeline to many financially strapped families in 2024 when it passed a rent stabilization ordinance that places a cap on annual rent increases for some multi-unit residential buildings. So that the percentage does not exceed the lower of two options: either 2.75% or three-quarters of the annual inflation rate.
However, the city witnessed a sharp division over this policy. After a new city council took office the following year, the council rescinded the resolution, arguing that the ordinance prejudiced the rights of residential property owners and discouraged much-needed housing construction.
It was decided to hold a popular referendum next November after advocacy groups succeeded in collecting a sufficient number of signatures. Rent stabilization measures will remain in effect until then, but it is unclear how voters will stand.
Tony Barrera, a longtime city resident and City Council member who was in the minority who voted to keep rent stabilization in 2025, says the issue is stirring up very strong feelings in Salinas. He points out that his constituency overwhelmingly supports maintaining these measures, as renters represent 70% of the population, while 80% of them work in agricultural fields. Since about a third of the population does not have legal residency documents, they will not be able to vote in the fall.
But he also expressed concerns that property owners in his district may be unable to make mortgage payments or cover property maintenance costs under this decree. He added that if they had to sell their homes, it could end up raising rents even further for the residents he represents.
Landlords can apply for exceptions if they need to raise rents higher than the law allows, said Matt Huerta, a Salinas-based affordable housing expert and rent stabilization advocate.
He added: "We realize that costs may sometimes exceed inflation. Sometimes customs duties are imposed, and suddenly it becomes difficult to obtain a refrigerator or water heater. There are specific procedures for submitting applications in this case."
Those who oppose the rent stabilization policy believe that this law may exacerbate the housing crisis in the city. Because it may discourage investors or real estate developers who wish to build in the area. In contrast, proponents argue that the city's rent-stabilization decision only applies to buildings built before 1995, meaning new housing units remain affordable at market rates.
For years, the city has suffered from a housing shortage that has not kept pace with population growth; Although the Salinas City Council approved a plan to build 11,500 new housing units in 2008, the Great Recession made financing any new construction projects nearly impossible, according to Dono, who was then in the middle of his first term as mayor.
New construction also stopped due to the Covid pandemic, and the pace of its resumption remains slow even after 6 years. Now, with mortgage interest rates exceeding 7% - their highest level in 20 months - and the US Federal Reserve preparing to raise interest rates further, borrowing costs are further exacerbating the crisis.
However, Dono is optimistic about the future of Salinas. He and other local officials are seeking to bring more jobs to the area, while the City Council recently approved a plan to provide down payment assistance to first-time homebuyers.
Dono says: “I am the mayor of the city where the writer John Steinbeck grew up, who described it as the land of Eden. I have confidence that this city will return to its glory.” But the mayor can't say how long that will take.
