3 in 10 Bay Area residents can’t cover basic needs, Tipping Point Community report says

SAN FRANCISCO (KGO) — A new report just out from the Tipping Point Community – a nonprofit organization started by Daniel Lurie before he became San Francisco mayor, which highlights growing poverty across the Bay Area.

After years of decline, we’re seeing a drastic increase in the number of people living in poverty.

The new numbers indicate that more people across the Bay Area are struggling to make ends meet. Even people who work full-time are having trouble. The biggest increases in poverty are in San Francisco County. But some say there are critical steps to keep people out of poverty.

“These numbers are a wake up call,” said Sam Cobbs, Tipping Point Community CEO.

“Poverty has drastically increased, after seeing major declines over the last 10 years. In the last 9 months in 2023, we saw those declines in last decade in poverty erased,” said Cobbs.

According to Tipping Point, San Francisco County saw the largest jump in poverty rates in the Bay Area. It now has the highest rate in the region at 17.5%.

More than 1.8 million Bay Area residents – nearly 3 in 10 people – cannot cover basic needs.

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ABC7 News talked to people who know others struggling to get by.

“A lot of them. They’re having a hard time. A lot of them are borrowing money before the end of the month. They pay it and by the time their pay comes, they’ve already borrowed it again. So, it’s like they’re never getting ahead,” said San Francisco resident Shane Sadoski.

“We have friends who have moved out of SF proper to other areas of CA,” said Courtney Cheng, a resident of San Francisco.

Tipping Point Community says poverty rates are rising across nearly every demographic in the Bay Area.

“Black poverty rates jumped from 15.8 to 22.1%. Even more staggering, Asian residents saw poverty rise nearly 50% from 9.6% to 14.1%,” said Cobbs.

Tipping Point Community leaders say one of the reasons – wages that aren’t keeping up.

“Overwhelmingly, this is happening not because people aren’t working hard, but the rise in wages aren’t keeping up with the cost of living,” said Cobbs.

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Tipping Point also says it costs more just to live.

“The cost of living is up 46%. Since 2021 alone, grocery prices have risen by 17%,” said Cobbs.

Government support is also being cut back according to Tipping Point.

“As result of H.R. 1, we are expecting some of the deepest cuts to our social safety net in our history,” said Ali Sutton, Chief Program Officer of Tipping Point Community.

Tipping Point Community says there are ways to curb poverty in our communities. They include increasing affordable housing, expanding childcare, investing in training and apprenticeship programs, and preserving safety net services.

“Our report shows that if we fail to preserve basic support that keep people housed and fed, the impact would be truly devastating,” said Sutton.

Tipping Point Community says it’s “investing in systemic changes and policies to create lasting solutions.” The organization also says that it’s focusing on programs that expand access to well-paying jobs.