The cost of living in Sunnyvale significantly surpasses both the statewide and nationwide averages. Low-income families are finding it increasingly difficult to make ends meet, with a surge in "frivolous" lawsuits in the state contributing to soaring prices.
According to RentCafe, a real estate market information service, the cost of living in Sunnyvale is 63% higher than the average cost of living in California and 125% higher than the national average cost of living in the U.S. In California, the cost of living is 38% higher than the national average. State residents pay significantly more than the national average for necessities such as housing, utilities, and transportation.
A report from the American Tort Reform Foundation indicates that an abundance of "frivolous" lawsuits is one factor driving up costs in California. The report revealed that these "no-injury lawsuits" impose an effective "tax" on California residents of over $1,900 each year. Furthermore, the report stated that annually, 750,000 jobs are lost due to "excessive tort costs." At the time of publication, it was reported that in the past year alone, California businesses had settled more than 600 claims and paid out nearly $14 million. Of this sum, plaintiffs’ attorneys received $12.2 million. This additional "tax" borne by each Californian is a consequence of businesses raising their prices to cover litigation costs.
Tiger Joyce, president of the American Tort Reform Association said: "California is plagued by serial plaintiffs and their lawyers who file boilerplate, no-injury lawsuits that nitpick technicalities and abuse the legal system. Unfortunately, while trial lawyers often collect millions, their clients may receive mere pennies." Joyce noted that many of these lawsuits target small businesses with limited financial resources.
Sunnyvale Community Services states that California has the highest poverty rate in the country at 23.5%. The organization added that low-income residents have been particularly affected by the escalating costs of basic necessities.
RentCafe, according to its website, provides data and reports related to the real estate market. Its information has been featured in publications including The New York Times, Forbes, and MarketWatch. RentCafe also offers consumers information about house and apartment listings.