California is in the midst of a housing affordability crisis. And whether you are renting or buying, “the salaries that people once strived for often are no longer enough,” reporter Steve Large with CBS News Sacramento said.
Household income levels — based on the latest data from California’s Department of Housing and Community Development — are used to determine eligibility for certain housing assistance programs.
Advertisement: High Yield Savings Offers
Some of those income levels at which people qualify for low-income housing assistance are “mind-boggling,” Chelsea Carmack, who recently moved to California, told CBS News Sacramento.
In the Bay Area, for instance, the low-income threshold for individuals is $111,700 in Santa Clara and $109,700 in San Francisco and San Mateo counties.
“I love the weather,” Carmack told Large, adding that when it comes to finding housing, “it’s been very challenging to adapt to the higher cost of living.”
Now her California dream is simply “to survive.” That applies to many Californians.
The U.S. Department of Housing and Urban Development considers homeowners cost-burdened if they spend more than 30% of their monthly income on housing, including utilities. They’re severely cost-burdened if that figure tops 50%.
These households “may have difficulty affording necessities such as food, clothing, transportation and medical care,” according to HUD.
In California, where homes cost about twice as much as the typical U.S. home, 41.1% of households were cost-burdened in 2023 — the highest proportion in the country, according to California’s Legislative Analyst’s Office (LAO) housing affordability tracker.
LAO also found that the annual household income needed to qualify for a mortgage on a mid-tier California home in March 2025 was about $234,000 — more than double the state’s 2023 median household income of $96,500.”
If you’re looking for a starter home, you’ll likely need to earn at least $142,000. And if you’re eyeing a two-bedroom place, your monthly payments could be nearly double what you’d pay in rent.
While the situation in California is severe, affordability is an issue across the country. In 2023, 41.8 million people — or 32.8% of all households — were cost-burdened. That includes just over half of renters (51.8%) and nearly a quarter of homeowners (23.3%).
DJ Kamal Mustafa
I’m DJ Kamal Mustafa, the founder and Editor-in-Chief of EMEA Tribune, a digital news platform that focuses on critical stories from Europe, the Middle East, Africa, and Pakistan. With a deep passion for investigative journalism, I’ve built a reputation for delivering exclusive, thought-provoking reports that highlight the region’s most pressing issues.
I’ve been a journalist for over 10 years, and I’m currently associated with EMEA Tribune, ARY News, Daily Times, Samaa TV, Minute Mirror, and many other media outlets. Throughout my career, I’ve remained committed to uncovering the truth and providing valuable insights that inform and engage the public.
