When we talk about “low income” in San Diego County, most people think of the Federal Poverty Level. But as new data reveals in the 2025 Real Cost Measure report from United Ways of California, the federal poverty level is missing the bigger picture.
The Federal Poverty Level (FPL) for a family of four is $32,150. This measure is based on a calculation established in the 1960s that simply multiplies the cost of a minimum food diet by three to account for other family expenses. Because it only accounts for food costs and doesn’t consider modern expenses like housing, childcare, transportation, or healthcare, the FPL is a severely outdated and ineffective metric for evaluating true economic status or determining adequate support from the federal government.
But the 2025 Real Cost Measure report shows a family of four in San Diego County with two adults, one child in elementary school, and one in preschool actually needs more than $116,000 annually just to meet basic needs. That’s the equivalent of three full-time minimum-wage jobs.
For many local families, the official federal poverty threshold doesn’t come close to capturing the real cost of living here. Rent, groceries, child care, health care, and transportation costs have all risen dramatically, and yet the metrics for measuring financial need have barely changed in decades. That’s why the findings from this Real Cost Measure are so critical.
The Real Cost Measure also finds that:
- Almost HALF of San Diego County families with children under age six are not making enough to cover their expenses.
- On average, 97% of households below the Real Cost Measure in San Diego have at least one working adult.
- 42% of local households spend more than 30% of their income on housing.
- And when you have two kids, child care at $19,000 a year is a family’s second highest expense.
- Approximately 70% of single-mother households in San Diego County are not meeting the basic costs of living.
What Is the Real Cost Measure Report?
This year, United Ways of California, in partnership with local United Ways across the state, released The Real Cost Measure in California 2025. For over ten years, this annual report has provided an in-depth look at how rising costs continue to shape economic opportunity and what we can do to create a future where every Californian can achieve financial security.
The Real Cost Measure is designed to show the true cost of living in our state. It shines a bright light on what it actually takes for households just to get by and to cover basic needs. While the federal poverty level might label around 10% of Californians as “poor,” the Real Cost Measure reveals a much starker truth:
More than 1 in 3 California households (nearly 3.7 million families) don’t earn enough to make ends meet.
This means that even with full-time jobs, many families still struggle to afford essentials like housing, food, and transportation.
The Real Cost Measure goes beyond income alone. It looks at:
- Household makeup (number of adults and children)
- Conjugal status (single parents)
- Education level of the head of household
- Gender and ethnicity
- Regional cost differences (because living in San Diego County is very different from living in Fresno or Redding)
The 2025 study examines how systemic and historical inequities contribute to this ongoing struggle, particularly for communities of color, women-headed households, and workers in low-wage industries.
The Real Cost Measure study gives policymakers, nonprofits, and community leaders actionable insights into who is struggling and why.
The data underscores an urgent need for expanded income support, affordable housing, and workforce development initiatives to help families move from surviving to thriving.
Turning The Data Into Action in San Diego County
United Way of San Diego County (UWSD) hosted the 2025 Real Cost Measure Event on October 7, 2025, gathering local partners, policymakers, and community leaders around one shared goal: building a stronger, more equitable San Diego.
Attendees heard firsthand from an inspiring panel of local experts and changemakers:
- Senator Steve Padilla, California State Senate
- Stephen Russell, President & CEO, San Diego Housing Federation
- Alondra Alvarado, President & CEO, San Diego Hunger Coalition
- Pamela Gray Payton, VP & Chief Impact & Partnerships Officer, San Diego Foundation
Together, we explored how economic pressures are affecting San Diego families and what actions can help close the gap between getting by and getting ahead.
United Way of San Diego County’s Programs for Financial Stability
United Way of San Diego County partners with organizations across the region to ensure that all children, individuals, and families have the support they need to achieve educational success and financial security.
Through education-focused initiatives like United for Literacy, which supports early childhood reading, and STEAM-to-Careers, an after-school program introducing students to in-demand fields in science, technology, engineering, arts, and mathematics, we help open doors to opportunity.
We also lead programs that strengthen financial well-being, including SparkPoint, a financial coaching program; the San Diego Bank On Coalition, which expands access to safe and affordable financial services for unbanked and underbanked residents; and the San Diego County Earned Income Tax Credit (EITC) Coalition, which helps low- to moderate-income individuals and families file their taxes for free.
Beyond our own programs, we collaborate with local nonprofits, businesses, and policymakers to drive lasting community impact.
Why It Matters for San Diego
San Diego is the second most expensive place to live in the United States, according to a 2025 Redfin analysis of housing affordability among the 50 largest U.S. metropolitan areas. Housing costs alone can consume much of a household’s income, even for those earning well above the federal poverty line.
The Real Cost Measure offers a local roadmap for action. By revealing the true cost of living in our community, it helps leaders and policymakers design solutions that reflect what families actually need to make ends meet and build lasting stability.
At United Way of San Diego County, we’re using these findings to create and support programs that help bridge the gap for struggling individuals and families. By shining a light on the growing issue of unaffordability, we’re encouraging local policymakers, organizations, and businesses to take meaningful action.
When we redefine what “low income” really means, we also redefine what’s possible for San Diego County’s future.
Join the Movement
Everyone has a role to play in shaping a more equitable and resilient San Diego County. Share the insights from the Real Cost Measure, start conversations in your community, and advocate for policies that give every person a fair shot at economic mobility.
You can take action by supporting local nonprofits that help families meet their basic needs, volunteering your time or expertise, and making your voice heard by contacting local policymakers about issues affecting affordability and access to opportunity.
Visit unitedwaysca.org/realcost to explore the data, follow @unitedwaysd to stay informed about local efforts, and share these insights with your own networks to help spread awareness and inspire action.
Together, we can turn awareness into action and ensure that every San Diegan has the opportunity to live with dignity, stability, and hope.