The most dramatic example is in Santa Clara County, where a single person earning up to $111,700 per year is officially categorized as low income. While this figure may seem staggering to those living outside California, it aligns with the region’s soaring housing prices and overall cost of living. Rent for modest apartments regularly exceeds $3,000 a month, and home prices continue to climb beyond the reach of most middle-class residents.
For locals like Samuel Carbajal of San Jose, these figures are not surprising. “If you make $111,000 a year, you’ll still have a hard time getting a spot here,” he said, echoing the sentiment of many who feel squeezed by the ever-growing affordability gap. The situation has become so dire that even dual-income households find it difficult to secure stable housing within their communities.
San Jose college student Kingsley Egbujor described his struggle to maintain basic living standards while balancing education and work. “It’s not a livable situation,” he said. “People are having to start living outside in different areas like Hollister and Los Banos just to be able to make it even. Buying a house is next to impossible. I can barely afford to live here.” Others have opted to leave the region altogether. Kayla Guerrero, who was visiting South Bay recently, shared that she relocated to Placer County due to the overwhelming cost of living in the Bay Area. “It’s been a great experience. However, I’m away from family and friends and just everything that I knew as I was growing up,” she said. Her story mirrors the experience of many who’ve had to make the painful choice between financial stability and proximity to loved ones.
Local housing advocates warn that the new income classifications are a red flag indicating deeper systemic problems. Regina Celestin Williams, executive director of a regional affordable housing organization, explained that for every affordable housing unit that becomes available, there are often more than ten applications. The demand dramatically outpaces supply. “These numbers highlight that while the region continues to generate wealth, it’s not translating into accessible housing,” said Williams. “There’s still a lot of work to do to make sure that there’s enough homes so that everyone can afford to live here.” She emphasized the importance of the state’s Regional Housing Needs Assessment, a mandate requiring cities to increase their housing stock. Though this policy has made some progress, experts say it’s only scratching the surface of what’s needed.
Meanwhile, the Santa Clara County Housing Authority pointed out that while residents at the upper end of the low-income bracket may qualify for some state or local assistance programs, they are often excluded from federal aid, which is reserved for those with significantly lower incomes. The paradox is clear: a six-figure salary, long considered a marker of success, no longer guarantees a secure or comfortable life in the Bay Area. As housing costs continue to climb and more residents find themselves priced out of their own neighborhoods, the definition of “low income” is being rewritten—and with it, the very fabric of what it means to be middle class in California.
