In California, the definition of “low income” is shifting as living costs soar, particularly due to the housing affordability crisis. According to the California Department of Housing and Community Development, single-person households in Orange, Santa Barbara, and San Diego counties may soon be classified as low income if they earn less than $100,000, based on current trends.
These counties would join three Bay Area counties that have already reached this threshold. California determines income levels by comparing them to the area’s median income, but adjustments are often made to reflect high housing costs. This means someone earning $100,000 could still be considered low income due to expensive housing. These income levels influence eligibility for government programs like housing assistance.
The Los Angeles Times reports that in Santa Barbara County, the low-income threshold rose by 48% from 2020 to 2025, reaching $98,850. Orange County saw a 32% increase to $94,750, and San Diego County’s threshold increased by 43% to $92,700. If these trends continue, the low-income thresholds in these counties will surpass $100,000 before the next assessment.
The rising cost of living is affecting more than just Southern California. KSBW notes that Santa Cruz County considers individuals earning below $111,100 as low income, ranking it as the second most expensive county in the state. In contrast, the median household income in the United States was $80,000 in 2023.
This economic strain is evident in the lives of residents like Sam Perez, a retiree from Santa Ana, who expressed concern over the financial challenges facing young people today. “It’s just sad for young people,” she said. “You can either buy a house or have a family. You can’t have both.”
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