The Rogers family holds hands to pray before eating dinner in their home in Temple, Texas on Monday, April 14, 2025.
California – A sobering new report reveals that 35% of California households — more than 3.8 million families — do not earn enough to cover the most basic cost of living, painting a stark picture of financial insecurity across the state.
Published by United Ways of California, the report titled Breaking Barriers, Building Opportunity: The Real Cost Measure in California 2025 analyzes data from all 58 counties, calculating what it truly costs to live in the Golden State. Unlike federal poverty guidelines, which often understate financial need, the Real Cost Measure considers housing, child care, transportation, health care, taxes, and food.
“If families get hit with anything — a car repair, a medical emergency, a rent increase — it can tip them into homelessness,” said Elise Buik, CEO of United Way of Greater Los Angeles.
Interactive maps accompanying the report illustrate just how widespread and uneven the economic burden is, from high-rent cities to rural communities with limited job opportunities. The data shows that even families with two working adults often struggle to make ends meet. For example, a household with two parents, a preschooler, and a school-age child may need an annual income well above what many full-time jobs provide.
Ivonne Sonato-Vegas, a mother of five, described how her family survives thanks only to support from her parents. “Child care would have broken us,” she said. “We don’t qualify for Medi-Cal, and private insurance for a family of seven would cost up to $1,200 a month. So I have to work full time just to get health coverage.”
The report is based on data from October 2023 and doesn’t account for the continued impact of inflation and high interest rates since then — meaning the situation is likely worse now.
“Things are going to get worse for working families,” warned Pete Manzo, CEO of United Ways of California. “And sources of public assistance are shrinking.”
Food banks are already feeling the pressure. Carolyn Fajardo, CEO of Feeding America Riverside, says both need and costs have soared, while donations have declined. “We’re seeing monthly donors pull back. They just can’t afford to give the way they used to.”
United Ways of California is calling on state lawmakers to enact policies that support struggling families, including expanded child tax credits and affordable housing incentives.
As economic pressures mount, the report is a stark reminder that millions of working Californians are one emergency away from crisis.
