With California voters preparing to elect a new governor on Tuesday, concerns over the cost of living have emerged as a defining issue in a race that pits Democrat Xavier Becerra against Republican Steve Hilton, with both candidates promising economic relief but offering sharply different approaches.
From soaring housing prices and expensive healthcare to utility bills and gasoline costs, affordability has become a central concern for residents of the nation's most populous state, even as California remains one of the world's largest economies.
A statewide survey released in late October by the Public Policy Institute of California (PPIC) found that 77 percent of residents expected difficult economic conditions ahead, while 76 percent said their incomes were not keeping pace with inflation.
The survey also showed Becerra leading Hilton by 61 percent to 37 percent among likely voters, maintaining a substantial advantage as the campaign entered its final days.
An earlier PPIC survey found that 65 percent of likely voters considered candidates' positions on affordability very important in determining their choice, with similar concerns expressed across party lines.
"Affordability continues to be top of mind for Californians when considering their choice for governor," Mark Baldassare, PPIC's statewide survey director, said, when the September findings were released.
The election will determine who succeeds Democratic Governor Gavin Newsom, who is barred by term limits from seeking another four-year term.
Becerra, a former US secretary of health and human services and California attorney general, has emphasized government intervention to address high consumer prices, housing shortages and healthcare expenses.
Speaking to San Diego television station ABC 10News, Becerra said Californians wanted solutions to the affordability crisis, particularly the costs of housing, energy and food.
He has pledged to declare a state of emergency over the housing shortage, strengthen action against price gouging and seek measures to restrain utility and insurance costs.
Hilton, a former Fox News host and adviser to former British prime minister David Cameron, has focused on reducing taxes, regulations and government spending.
He has proposed eliminating state income taxes on the first $150,000 of individual earnings and reducing gasoline prices to $3 a gallon through changes to taxes and energy policies.
Hilton has also advocated increasing in-state oil production and redirecting public spending away from California's long-delayed high-speed rail project.
"We pay the highest taxes in the country for the worst results," Hilton told ABC 10News, criticizing years of Democratic leadership.
His proposals would require significant changes to state tax and spending policies, and some would face legislative obstacles in California, where Democrats control the legislature.
Housing affordability remains one of the state's most persistent economic challenges. California's median home value is more than twice the national level, leaving many prospective buyers unable to enter the market and increasing financial pressure on renters.
Although the candidates agree that housing costs are excessive, they differ over how to address them. Becerra favors stronger state action to accelerate housing development and protect consumers, while Hilton argues that reducing regulatory requirements and construction costs would help increase supply.
Healthcare has emerged as another major concern, with rising insurance premiums and medical bills placing additional pressure on household budgets.
According to KFF Health News, the average annual premium for employer-sponsored family health insurance in California has reached nearly $28,400, an increase of 24 percent since 2022.
A 2025 survey by the California Health Care Foundation and NORC (National Opinion Research Center) at the University of Chicago found that nearly two-thirds of Californians worried about receiving unexpected medical bills, while six in 10 reported that they or a family member had skipped medical care because of cost.
"People are hungry for pretty aggressive action on healthcare spending," Kristof Stremikis, director of market analysis and insight at the California Health Care Foundation, told KFF Health News.
Becerra has promised to pursue lower prescription drug prices and challenge anticompetitive practices among hospitals and healthcare providers.
As California attorney general, he brought an antitrust lawsuit against hospital operator Sutter Health that resulted in a $575 million settlement, although the healthcare system admitted no wrongdoing.
Hilton has proposed greater price transparency, increased competition in prescription drugs and personal healthcare accounts that could provide up to $10,000 annually as part of changes to Medi-Cal, California's Medicaid program for lower-income residents.
Healthcare policy specialists have questioned whether either candidate has provided sufficient detail on how the proposals would be financed or implemented.
California has already established an Office of Health Care Affordability to limit healthcare spending growth, but its efforts have faced resistance from hospital organizations concerned about the potential effects on patient services.
The broader challenge extends beyond campaign promises. Rising healthcare expenditures can constrain household consumption and employer wage growth, while housing and transportation costs affect workers' ability to remain in the state.
Political divisions over immigration, public safety and relations with the federal government have also shaped the campaign, but affordability remains an issue on which voters from both major parties express concern.
The next governor will face the task of translating campaign proposals into policies amid competing budget demands, legislative constraints and economic uncertainty.
For millions of California households, the election's significance may ultimately be measured not only by its political outcome, but also by whether the next administration can deliver meaningful relief from the rising cost of everyday living.
