Current Trends in Housing Affordability

Housing affordability in California is a persistent issue, with new data revealing that three counties in Southern California—Orange, Santa Barbara, and San Diego—are on track to exceed an annual salary threshold of $100,000 for low-income single-person households. This information emerged from an April report by the California Department of Housing and Community Development.

Understanding Low-Income Designations

The classification of what constitutes “low-income” is evolving, especially in regions where housing expenses are unprecedentedly high. California’s income categorization relies on comparisons to local median incomes, and adjustments are made in response to regional cost variations.

Consequently, individuals earning $100,000 may find themselves classified as low-income in high-cost areas despite their income surpassing the local median. Various government assistance programs utilize these income thresholds to establish eligibility for benefits such as housing assistance.

A Closer Look at Housing Prices

In Santa Barbara County, the low-income threshold has surged by 48% from 2020 to 2025, reaching $98,850. Orange County has seen a more modest 32% increase, bringing the threshold to $94,750, while San Diego County follows closely with a 43% increase to $92,700. If current trends persist, these counties will join Marin, San Mateo, San Francisco, and Santa Clara counties, all of which have already surpassed the six-figure mark.

Historical Context and Data

Back in 2000, the concept of low-income households seemed less pervasive, with no Californian cities or counties having over 50% of families classified as low-income, according to a Times review of U.S. Department of Housing and Urban Development data. Fast forward to today, areas like Orange, Santa Barbara, and San Diego now feature median single-family home prices exceeding $1 million, with figures approaching $1.5 million in Orange and Santa Barbara counties.

Residents’ Perspectives

As legislative efforts emerge to enhance housing affordability, public sentiment seems to be increasingly negative. A recent UC Berkeley Institute of Governmental Studies poll found that nearly half of California voters feel worse off compared to last year, and 54% express a bleak outlook on their economic futures.

For instance, Jett Murdock, a 26-year-old computer science student, shares a two-bedroom apartment in Huntington Beach with three other roommates, each paying around $725 a month. Despite this arrangement, he still feels the pressure of escalating living expenses and plans to relocate out of state after graduation, seeking more affordable living conditions.