According to the income standards for 2026 released by the California Department of Housing and Community Development, in some counties of California, an annual income of over $100,000 is still considered low-income. This new income standard went into effect on the 23rd and is primarily used to determine the eligibility for affordable housing programs under certain state government assistance plans.
This year, the low-income thresholds have increased in most counties, with seven counties having single-person household low-income standards exceeding $100,000. These counties include Santa Cruz County, San Francisco County, San Mateo County, Marin County, Santa Clara County, Orange County, and Santa Barbara County.
Among them, Santa Cruz County has the highest threshold, where a single-person household with an annual income of less than $122,200 is classified as low-income, nearly a 10% increase from last year’s $111,100. Following closely are coastal counties such as San Francisco, San Mateo, and Marin, where the low-income thresholds for single-person households are all $117,700, higher than last year’s $109,700.
The low-income standard for single-person households in Santa Clara County is $113,700, Orange County is $104,200, and Santa Barbara County is $102,000.
Two counties have maintained their standards unchanged from last year: Solano County’s low-income threshold remains at $76,950, and Shasta County continues to keep its threshold at $54,500.
The Department of Housing and Community Development stated in a memo that with each additional family member, the income threshold will be adjusted accordingly to ensure that “the more family members, the higher the income limit.”
As these latest data are released, housing affordability remains one of the most pressing concerns for California residents.
The California Legislative Analyst’s Office (LAO) pointed out in the “2026 Housing Affordability Tracker” that “California housing prices remain significantly higher than other regions of the U.S.”
According to LAO, the median price of a home in California is around $775,000. Data from the real estate firm Redfin shows that this is nearly double the national median home price of $398,771.
LAO noted that during the pandemic (2020-2022), California’s housing prices increased annually by 14%. However, since then, the rate of price increase has significantly slowed, with the median home price currently rising by only about 1% per year. Despite the stabilizing trend in housing prices, the inability of residents’ incomes to keep pace with housing cost increases has made housing more unaffordable in recent years for most Californians.
By 2026, only about 23% of households have the financial capability to qualify for a loan on a median-priced home, down from approximately 31% in 2019.
A report recently released by the Public Policy Institute of California (PPIC) also highlights the severity of California’s housing issues, with low homeownership rates, and rental and housing prices above the national average.
The report states that California ranks second to last in homeownership rates nationwide, and housing costs have become a major factor driving people to leave the state. “Two out of every three California residents see housing costs in their area as a ‘major problem.'”
Among the younger population, homeownership rates are particularly low: only about 31% of the 30 to 34 age group own their homes, compared to a national average of approximately 49% for the same age range.
PPIC highlights that average rents in California are about 40% higher than the national average. Currently, the average monthly rent for a California home is around $2,159, while the national average is $1,526.
PPIC further states that housing costs are highest in coastal cities, leading to a significant number of residents continually moving to inland areas with lower living costs. However, local housing supplies struggle to keep up with the rapidly increasing demand.