The US city where a six-figure salary could now be considered ‘LOW income’
THINKING of packing your bags and moving to sunny California? Make sure you have deep pockets first.
A family of four earning up to a whopping $117,400 (£88,321) is now considered as low-income in San Francisco and nearby San Mateo and Marin Counties.
While the “very low income” category ranges from a cool $44,000 (£33,101) to $73,300 (£55,144) a year for a family the same size.
That's according to a report from the US Department of Housing and Urban Development, which makes an annual calculation to set income limits for housing assistance.
The figures put San Francisco and nearby cities ahead of Los Angeles, where the "low income" threshold for a family of four is $77,500 (£58,304.41) and even New York City with $83,450 (£62,780).
Increasingly steep housing and living cost are stretching families to the brink.
Just 15 per cent of San Francisco county residents could afford a median-priced home in the first quarter of 2018, according to a separate report by the Paragon Real Estate Group.
In May, the number of new homes and resale that sold for $800,000 or more in the Bay Area increased - making it one of the costliest markets in the US.
To compare in the UK, The Joseph Rowntree Foundation (JSF) estimates that a couple with two children need to earn at least £40,000 a year to reach a decent standard of living.
The minimum income standard set by the foundation is based on feedback from the public on what it thinks people need to achieve a decent living standard.
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It includes clothes and food but also Christmas presents and a one-week holiday in the UK.
A single person needs to earn £18,400 a year today to reach a decent standard of living, according to the foundation.
While each parent in a working couple with two children needs to earn £20,000 - the equivalent of £40,000 for a family of four.
Sometimes it feels like making payday stretch until the end of the month is an almost impossible task, let alone putting anything aside to save.
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How the cost of your travel, food and energy bills has changed in the UK
THE types of goods and services required for a minimum living standard have remained broadly the same, but the cost and how people buy them has changed - according to the Joseph Rowntree Foundation (JSF)
- The cost of getting around - Public transport has become much more expensive and bus services have been cut.
As a consequence, transport costs take up nearly a fifth of minimum household budgets.
Bus travel is 65 per cent more expensive in 2018 than in 2008.
For a single person, the minimum transport budget has risen from £17 to £37 a week. - The weekly food shop- On average the cost of food rose by just over a quarter between 2008 and 2018, but a minimum food budget for a single person rose from £29 to £44 a week, a rise of just over 50 per cent.
- Energy bills - On average energy bills are over 40 per cent higher than a decade ago, putting pressure on household budgets, despite the internet making it easier to shop around for better tariffs and more energy-efficient lighting making rises less steep for some households.
- Childcare costs have risen sharply - The average price of a full-time nursery place for a two-year-old is now £229 a week, having risen by well over 50 per cent since 2008.
The government’s emphasis on early years development is reflected in parents saying, unlike in 2008, that families should have the choice of nursery care for their pre-school children, rather than only being able to afford a childminder. - Technology is increasingly important as part of day-to-day life. People are spending less today on technology and are more connected than they were ten years ago.
Broadband, a basic laptop and smartphone cost £8 a week today for a single working-age person, compared to £9.50 for a landline telephone and a pay-as-you-go mobile in 2008, despite inflation of 25 per cent.
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