Bay Area's poverty soared, data shows, as California's top earners saw windfalls

"Newly released data found that the San Francisco Bay Area's poverty rate soared from 12.2% to 16.3% in 2023, with an approximate total 1.02 million residents in this six-county region considered impoverished by year's end. Another 12.5% of residents about 790,000 people hovered on the brink of poverty, meaning that about three in 10 Bay Area residents struggled to cover basic expenses."

"The data, released by the anti-poverty non-profit Tipping Point Community, make clear that cost of living has ballooned far beyond wages for many residents, hearkening to this region's stark wealth gap. The poverty threshold in the Bay Area is $28,081 annual income for one adult and $52,715 for a family of four, according to Tipping Point Community. The near poverty benchmark is $42,122 for one adult and $79,073 for a family of four."

"Income rose 34% from 2016 to 2023, but cost of living increased 46%, according to the report. Between 2021 and 2023, those numbers were 10% and 18%, respectively. The 2021-2023 period also saw a 17% uptick in grocery prices, according to the report. The analysis reveals a backslide in poverty-fighting efforts. Between 2011 and 2021, the region's poverty rate declined from 18.7% to 10.8%. The 2023 poverty rate reflected levels last noted in 2016, about 2% higher than before the Covid-19 pandemic."

The San Francisco Bay Area's poverty rate climbed to 16.3% in 2023, amounting to roughly 1.02 million residents classified as impoverished and another 12.5% (about 790,000 people) near poverty. Cost of living increases have outpaced income growth: income rose 34% from 2016 to 2023 while costs rose 46%, with grocery prices up 17% from 2021 to 2023. The poverty threshold is $28,081 for one adult and $52,715 for a family of four, with near-poverty benchmarks at $42,122 and $79,073 respectively. Half of people in poverty live in families with at least one full-time, year-round worker. Poverty estimates typically lag by at least 18 months because they are derived from census data and subsequent analysis. The 2023 rise reversed decade-long declines and returned poverty levels to roughly those seen in 2016.

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