A new report from United Way California says at least 34% of Orange County households are struggling financially to meet their basic needs.
The “Real Cost Measure” report released on Tuesday, April 29, goes beyond federal and state poverty guidelines, officials say, and accounts for housing, food, health care, childcare, transportation and other basic needs to calculate the “real” cost of living.
The state considers a $39,000 annual income as the poverty level for a family of four, the federal government sets its at $32,000. But using the minimum wage of $15.50 an hour and the cost of all those realistic drains on a family’s budget, the report’s authors estimate the “real cost measure” to get by in Orange County is $127,888, according to United Way officials.
A few of the key findings include:
41% of households in Orange County spend more than 30% of their income on housing. 52% of households in Orange County with children younger than age 6 fall below the real cost measure. More than half of Latino families are estimated not to earn enough to make ends meet. More than 7 in 10 households without a high school diploma or equivalent fall below the Real Cost Measure, compared to those with a high school diploma (54%) and those with a bachelor’s degree or higher (20%).“We are seeing families forced into impossible choices, like forgoing adequate childcare, delaying health treatments or going hungry,” Pete Manzo, president and CEO of United Ways of California, said in a statement. “California leaders must pursue policies that will make a difference for working families, starting with expanding tax credits, improving Californians’ access to income support programs and increasing support for renters.”
There have been some positives, such as the increase in minimum wage and reduction in the unemployment rate, Manzo said, but it’s not enough to keep families from falling below the real cost measure.
Andrew Fahmy, executive director for the United Way of Orange County’s United for Financial Security initiative, said people are making more money, but at a slower rate than the cost of living. Between 2021 and 2023, the O.C. median household income increased by $12,000, but the cost of living for a family of four rose by $18,000, he said.
“It’s great that people are making more money, and the minimum wage increases have helped, but the cost of living in Orange County has increased a little faster, so people haven’t been able to keep up,” Fahmy said.
The report paints a picture of the reality of living in Orange County, Fahmy added.
“It’s a little bit of a tale of two cities — or tale of two counties — kind of story where on one hand, you have a lot of wealth. You have some of the wealthiest people in the world living in Orange County. And on the other hand, you have some of the people who are struggling the most,” Fahmy said.
A majority of struggling families are hardworking adults, Fahmy added.
“A lot of people see poverty as people who are lazy or people who aren’t working, or just not wanting to better themselves. The truth is that there are dual working households, two people working in the household, not making enough to live here, but it’s close enough that they don’t leave,” Fahmy said. “What ends up happening is that the debt starts to accumulate. You put off saving for retirement. You put off saving for a rainy day because you need to use all of your money for rent.”
Andrew Fahmy, executive director for United for Financial Security at the Orange County United Way in Irvine on Monday, April 28, 2025. OC United Way released its latest Real Cost Measure study which found that 34% of O.C. households struggle to meet their basic needs. (Photo by Leonard Ortiz, Orange County Register/SCNG)Whether it’s with multiple jobs or side hustles, Fahmy added, people are doing their best.
“It’s inspiring, on one hand, but it’s also a scary tale when you start to look into the details and you start to really see what it takes to live here,” Fahmy said.
Fahmy said the hope is for local and state governments and other groups to use the data to understand that the current poverty line is no longer relevant.
“The official poverty measure in Orange County would be $30,900 for a family, two adults, one preschool- or one school-age child. That’s not relevant,” Fahmy said. “We all live here. We know that it’s not enough money to survive. It’s impossible to find an apartment, and impossible to pay for food and transportation and childcare and healthcare and housing, all of that, with that much money,” he said.
“When we decide on social supports, when we decide on what the minimum income requirements are to receive safety net programming, when we decide what the cap is in your earning before you can receive CalFresh, or other social services, I think we should be following measures like the real cost measure to better accurately understand how much it takes to live.”
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