Fernando
Elite Member
- Joined
- Nov 7, 2016
- Professional Status
- Certified Residential Appraiser
- State
- California
San Francisco now has the highest poverty rate in the entire Bay Area, new study shows
While booming rent prices are often cited as a sign of San Francisco's ongoing comeback, there's a dark side to the story. Poverty rates are surging in the city and are now considered the highest in the entire Bay Area. According to new data compiled by Tipping Point Community, a local nonprofit that works with other groups to fight poverty, 17.5% of San Francisco residents live below the poverty line. The increase wipes away nearly a decade of progress and coincides with San Francisco reclaiming its title as the most expensive city in the Bay Area.San Francisco is the starkest example at play and a growing symbol of the Bay Area's affordability crisis. In September, the city again became the most expensive place to rent in the Bay Area and the second-most expensive place to rent in the country. The median monthly rent for a one-bedroom in the city is currently $3,113 - a 12.9% year-over-year increase, according to Apartment List.
Even with high median incomes, rising costs are surpassing wage gains. Tipping Point Community data shows that Bay Area household incomes increased by 34% between 2016 and 2023, yet cost-of-living expenses grew by 46%. "The rise in cost of living is particularly reflected in the rising cost of basic needs, such as the 17% increase in grocery prices from 2021 to 2023," the report reads.
All groups were affected, but Black and Latino residents experienced the largest increases in poverty - from 15.8% to 22.1% and from 20.3% to 26%, respectively. The report also found that half of all people in poverty have at least one full-time employee in the household. Beyond costs outpacing wages, expiring pandemic-era benefits and cuts to safety-net programs like CalFresh are the biggest contributing factors to this regional decline, according to Tipping Point. "The result is a region where nearly 3 in 10 residents cannot make ends meet despite a growing economy," reads the report.