The Real Cost Measure Report Shows a 25% Disparity

San Diego – Nov. 22, 2023 –The Real Cost Measure (RCM) 2023 is a new report by United Ways of California presented in collaboration with United Way of San Diego County, which seeks to shed light on a more accurate depiction of the cost of living in California. Shocking findings of the study detail how one in three households in California aren’t earning enough to make basic ends meet. That’s an alarming 3.7 million households experiencing financial insecurity.

“The Real Cost Measure in California 2023 shows that many more California working families struggle to meet living costs than official estimates, and identifies significant gaps between what it costs for families and their children to live with dignity and what they actually earn,” says Pete Manzo, President and CEO of United Ways of California. “This Real Cost Measure should be the yardstick by which we set our statewide priorities, and this study is a wake-up call to elected officials, civic leaders, the business sector, and community members that much more needs to be done to help families thrive.”

In contrast to the Federal Poverty Level, which is the official measure to determine whether a family qualifies for a number of government assistance programs and does not account for many realistic expenses, the Real Cost Measure study accounts for the cost of housing, food, healthcare, childcare, transportation, and other basic needs to reveal what it really costs to live in California.

The cost of housing alone contributes significantly to the financial struggle that many San Diegans are experiencing. Over half of the homes in San Diego County now cost more than $1 million, meaning that families who already struggle to make rent are likely priced out of purchasing a home. The report also considers factors such as race, gender, and geography while underscoring the particular struggles faced by single mothers, households of color, households with young children, and seniors, as well as other vulnerable groups who are more likely to be disproportionately affected by the economic challenges.

Some of the findings demonstrate that less than 11% of San Diego County residents are below the Federal Poverty Level; however, 36% of households fall below the Real Cost Measure, indicating a 25% disparity between measures of people who were captured as living below the cost of living. The Real Cost Measure describes a family of four needing to earn $27,749 per year or less to qualify as below the Federal Poverty Level; that budget is much different for San Diego County. According to the RCM, in order for a household of four to afford a decent standard of living in San Diego, the budget needs to be $110,568. Considering that rent for the average two-bedroom apartment would account for at least 92% of that cost, the federal poverty level automatically sets San Diego County residents up for failure.

Additionally, the study shatters the falsehood that those struggling financially are outside of the workforce. In fact, 97% of families who fall under the RCM have at least one working adult. However, a family of four (two adults, one infant, and one school-age child) would need to hold three full-time, minimum wage jobs in order to achieve basic economic security in San Diego County.

Empowering families amidst soaring costs
The report aims to initiate a dialogue in which leaders across all sectors in our community can assist in exploring ways to support low-income families facing financial hardships in our region. Essential, open dialogue is the first step in sparking much-needed policy action that creates tangible changes in the lives of those experiencing economic obstacles.

“It’s daunting to see how many families truly cannot afford to live here and to think about what might happen if we do nothing. But we have an opportunity to act–let’s start working together on solutions,” says Nancy L. Sasaki, President and CEO, United Way of San Diego County.

“Nonprofits like United Way of San Diego County and our partners provide support that may address specific needs, but we can’t turn things around without wholesale change. We need community leaders to work together to enact policies that put San Diegans above the Real Cost Measure and engage with the stakeholders in government, nonprofits, and businesses who can make those policies a reality on the ground,” Sasaki added.

This report analysis serves to identify possible advocacy solutions to help families in different situations reach financial stability and independence. United Ways of California and United Way of San Diego County seek to convene local and statewide leaders, policymakers, and community partners to build a more equitable and affordable California.

Demographic findings from The Real Cost Measure in California 2023 are calculated from the U.S. Census Bureau’s 2021 American Community Survey, the latest data available as of this release, and historical data is available from 2014 through 2019. The study’s website provides data findings for each of California’s 58 counties, down to the neighborhood level, interactive maps, and an interactive calculator that shows how much a household in any county needs to earn to make ends meet. To learn more, visit https://www.unitedwaysca.org/realcost.

ABOUT UNITED WAY OF SAN DIEGO COUNTY
For over 100 years, United Way of San Diego County has remained devoted to its mission of sparking breakthrough community action that elevates every child, individual, and family toward a brighter future. Today, in partnership with local organizations, leaders, and community members, UWSD uses innovation, leveraged resources, and community-based strategy to resolve inequities and transform lives. United Way of San Diego County is passionately committed to addressing institutional disparities through the implementation of economic and educational initiatives.

Supporting United Way of San Diego County means investing in children's success from an early age and providing holistic family economic support so that all San Diegans can thrive. The nonprofit’s current programs focus on education and literacy support for early learners, college and career pathways for high school students, and tax assistance initiatives that enhance economic mobility for individuals and families. United Way of San Diego County believes that together, we can face critical challenges and build a stronger, more equitable community. United with community partners, UWSD cultivates a collective passion for deep systemic change, and impacts the lives of San Diegans county-wide.

Learn more and get involved by visiting uwsd.org and following @unitedwaysd on Facebook, Twitter, TikTok, and Instagram.

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