A sweeping new survey from the Stanford Institute for Economic Policy Research (SIEPR) paints a vivid picture of Californians’ growing unease, not only about their ability to secure affordable home insurance but also about the broader economic outlook facing the Golden State.
Californians Sound Alarm on Home Insurance Challenges
Three months after the devastating Los Angeles-area wildfires, the SIEPR California Economic Survey (CES) finds that most residents are deeply worried about the shrinking availability and skyrocketing cost of home and property insurance. Importantly, they lay the blame primarily at the feet of insurance companies and government officials, rather than climate change alone.
Utility companies, seen as crucial players in wildfire prevention, also drew criticism for perceived inaction. Yet, while concern is high, consensus on solutions remains elusive: 56 percent of respondents support government subsidies to lower insurance costs in fire-prone areas, but only 41 percent of those would accept higher taxes or premiums to fund such measures.
“These survey results confirm that there is widespread concern around the ability of California property owners to protect themselves from the potentially devastating economic consequences of more frequent and intense natural disasters,” said Neale Mahoney, Trione Director at SIEPR and economics professor at Stanford.
Rising Anxiety Across Key Issues
The CES, which surveyed 1,735 Californians in March, shows that inflation and housing costs continue to dominate public concern. The destruction wrought by January’s wildfires also appears to have pushed climate change and environmental issues into the state’s top three worries, overtaking homelessness, which had ranked higher just months earlier.
Adding to the sense of unease, consumer confidence in California has sharply declined. The survey shows a 15 percent drop in sentiment from December 2024, reflecting growing fears about unemployment, inflation, and gas prices.
Meanwhile, on the national front, Californians are feeling the impact of newly imposed tariffs under President Donald Trump’s administration. Nearly 74 percent of those surveyed expect the tariffs to harm the average American, with 69 percent anticipating a direct personal financial hit.
No Easy Solutions in Sight
While it’s clear Californians want action to address the home insurance crisis, the survey underscores a major hurdle: a lack of agreement on how to fund potential remedies. Public willingness to pay higher costs to support insurance subsidies is limited, complicating efforts by policymakers to craft effective responses.
“California just became the world’s fourth-largest economy,” noted Preeti Hehmeyer, managing director of SIEPR’s California Policy Research Initiative. “The state not only leads nationally — but globally — when it comes to policy challenges and solutions.”
As California continues to wrestle with the consequences of natural disasters, economic strain, and complex policy decisions, the CES offers an important window into residents’ priorities and expectations. The next survey results, due in June, are likely to shed further light on how opinions evolve as new challenges emerge.
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