In a striking reversal of traditional economic indicators, Orange County, California, has redefined what it means to be low income. With housing costs skyrocketing, individuals earning up to $104,200 annually now qualify for income-restricted housing and assistance programs. This shift underscores the profound impact of the region’s housing affordability crisis on its residents.
The California Department of Housing and community Development released updated income limits on May 29, 2026, setting new benchmarks for eligibility. In Orange County, a single-person household earning $104,200 or less is now considered low income, up from $94,750 the previous year. This stark increase reflects the escalating cost of living and the growing disparity between wages and housing expenses.
Young professionals grapple with financial instability
For many young professionals, the dream of homeownership in Orange County is becoming increasingly elusive. Megan Junanto, a 23-year-old actuary living in Irvine, recently received a raise that pushed her income above the new low-income threshold. Despite her relatively high earnings, she finds herself struggling to afford housing in the region.
“It just feels so crazy to me,” Junanto said. “Last year, I was considered low income, and now I’m just above it. It’s hard to imagine ever being able to buy a home here.”
Junanto’s parents bought a house in Garden Grove in the early 2000s on her father’s wages alone. Today, the same home would cost at least $1 millionillustrating the dramatic rise in housing prices over the past two decades.
The homeownership gap widens
A recent report from the California Association of Realtors reveals that only about 16% of Orange County households earn the minimum annual income of $350,400 needed to afford the region’s median home price of $1,442,930. This stark statistic highlights the growing divide between the cost of housing and the incomes of local residents.
Elizabeth Hansburg, director of People for Housing OC, attributes the affordability crisis to a lack of new housing development. “By choosing not to allow new housing development, we effectively force people into being poor,” Hansburg said. She argues that updating zoning and permitting rules to facilitate the construction of more apartments, townhomes, and condos is crucial for addressing the region’s housing shortage.
A 2026 survey conducted by UC Irvine found that 51% of residents have considered leaving Orange County, with the cost of housing cited as their most common concern. Hansburg notes that workers earning around $100,000 per year are the most likely to move out of the county in search of more affordable housing options.
The burden of rising rents
According to a report from the California Housing Partnership, Orange County renters need to earn about $56 per hour, or approximately $116,000 on a full-time salary, to afford the region’s average monthly asking rent of $2,913. Many low-income workers earn far less than this amount, making it difficult for them to secure stable housing.
Cesar Covarrubias, executive director of The Kennedy Commission, a nonprofit focused on affordable housing, notes that many workers cannot pay for rent on their own. “People have to double up, overcrowd, have two or three families live together,” Covarrubias said. “That burden is heavier on the low-income families.”
Covarrubias emphasizes that while higher-income families also struggle with housing costs, their incomes still allow them to move on and survive. In contrast, low-income families face significant challenges in meeting their basic housing needs.
College graduates return to their childhood homes
Some young professionals are continuing to live in their childhood homes due to the high cost of housing. Joe Silva, a 26-year-old client billing analyst at an investment management company, lives with his mother and two younger brothers in a one-bedroom apartment in Santa Ana.
Despite earning around $85,000 per year, Silva’s income isn’t enough to move the family into a larger two-bedroom unit. “They want you making around two-and-a-half times whatever the rent is,” Silva said. “You have to make close to $110,000 to get a place.”
Silva, a graduate of Claremont McKenna College, feels that he has worked hard in college and has progressed in his career. However, he still feels behind on keeping up with Orange County housing costs. “If you ask anyone my age, I don’t think most people are even looking at owning a home at this point,” Silva said. “That’s how bad it’s gotten.”
Understanding the data behind the crisis
In Orange County, workers can qualify as low-income while still earning more than most other workers in the county. This apparent paradox arises because officials weigh income data against local housing costs. When housing costs are exceptionally high, officials increase the income limits to give more people access to assistance.
Nicholas Marantz, an associate professor of urban planning and public policy at UC Irvine, explains that the rules behind the government calculations account for this imbalance between wages and housing costs. “Even if you have an income that seems high by national standards, you’re very likely to find housing extremely unaffordable in Orange County,” Marantz said.
The state’s income limits vary depending on household size and location. A family of four is considered low income in Orange County if it earns $148,850 per year or less. In neighboring Los Angeles County, the cut-offs are lower: $93,300 for individuals and $133,250 for families of four.
Individuals earning six-figure salaries also qualify as low income in Santa Barbara County, as well as in many parts of the San Francisco Bay Area, including Marin County, San Mateo County, Santa Clara County, Santa Cruz County, and San Francisco County.
Adam Sampsell, a mechanical engineer earning about $108,000splits rent with a roommate in the city of Orange. He feels burdened by the region’s housing costs despite his relatively high salary. “It is quite disheartening,” Sampsell said. “Even though I have this high salary, and I’ll probably continue to increase my salary as I get more experience in my job, there’s a very high likelihood that without marrying somebody soon, I will never be able to afford a house.”
