California’s housing affordability crisis has reached a new, alarming milestone. In several counties, individuals earning six-figure salaries are now classified as low-income, underscoring the state’s escalating cost of living and housing shortages.
top photo – BevyHouse Modular above photo – Modern Cabana
According to recent data from the California Department of Housing and Community Development, the income threshold to be considered low-income has surged dramatically in various regions. In Santa Clara County, for instance, a single person earning up to $111,700 now falls into the low-income category—a staggering $33,150 increase since 2020. Similarly, Marin, San Mateo, and San Francisco counties have set their low-income limits at $109,700 for single-person households, reflecting significant hikes over the past five years.
This trend isn’t confined to the Bay Area. In Sacramento, Placer, and El Dorado counties, a $72,050 salary now qualifies as low income for a single-person household, marking an 8.7% increase from the previous year. Los Angeles County has seen its low-income threshold rise to $84,850, while San Diego County’s has climbed to $92,700, both representing 8.8% increases.
These escalating thresholds highlight a broader issue: the state’s persistent housing shortage. Since the 1970s, California has struggled to keep up with housing demand, leading to skyrocketing prices and rents. Factors such as stringent zoning laws, high construction costs, and community opposition to new developments have exacerbated the problem, making it increasingly difficult for residents to find affordable housing.
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The implications are profound. As more individuals and families find themselves classified as low-income despite earning substantial salaries, the strain on affordable housing resources intensifies. Moreover, the widening gap between income and housing costs threatens to displace long-term residents, disrupt communities, and hinder economic growth.
Addressing this crisis requires a multifaceted approach. Policymakers must consider reforms that encourage housing development, streamline permitting processes, and balance environmental concerns with the urgent need for more homes. Without decisive action, the dream of affordable living in California may become increasingly unattainable for many.
Source: CBS News Sacramento, “New numbers show California’s affordability crisis is getting worse”
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Gary Fleisher, The Modcoach, writes about the modular and offsite construction industry at Modular Home Source.
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