INFLATION TAKING ITS TOLL ON REAL INCOME GROWTH
Cost of living in San Bernardino County is lower than among our Southern California neighbors, but it is higher than many peer regions. As a result, real income growth is important to ensure residents have sufficient income to thrive in San Bernardino County and afford rising expenses. This indicator tracks the change in inflation-adjusted median household income for San Bernardino County compared to the state and nation.[1] In addition, the median household income and the income needed to afford the cost of living in San Bernardino County are compared to selected peer markets.[2]
TREND
Median household income growth in the nation, California, and San Bernardino County solidly outpaced inflation until recently. In San Bernardino County, for example, real median household income had grown steadily over the past 10 years until 2022 when high inflation reduced residents’ buying power. Median household income recovered the following year, largely rising in step with inflation, to $85,069 in 2023. Since 2014, the San Bernardino County median household income rose 27% while the cumulative inflation rate over the same period was 29%. In comparison, California’s inflation-adjusted median household income has been consistently higher than San Bernardino County’s but has remained flat in recent years. Meanwhile, real median income nationwide has declined the past two years, only growing 13% since 2014, which lags behind the cumulative 10-year inflation rate of 29%.
HIGH RATES OF INFLATION IN RECENT YEARS HAVE REDUCED OR REVERSED GROWTH IN REAL INCOME
Median Household Income (Inflation Adjusted to 2023 Dollars) in San Bernardino County, California, and the United States, 2014 to 2023
RACE/ETHNICITY DETAIL
Asian and Pacific Islander households in San Bernardino County have the highest median household income, while Black households have the lowest. The remaining race and ethnicity groups have median household incomes in the middle and cluster within a range of $2,000 to $10,000 of each other.
MEDIAN HOUSEHOLD INCOME VARIES BY RACE AND ETHNICITY
Median Household Income by Race and Ethnicity in San Bernardino County, 2023
GEOGRAPHIC COMPARISON
Using the living wage estimates from the Living Wage Institute at MIT as a proxy for measuring cost of living, San Bernardino County has the lowest cost of living among Southern California peer counties, but the highest among selected peer markets outside of California.2 This estimate is based on the annual income needed to afford basic needs for a family of four, consisting of two working adults and two children. Comparing the income needed for a family of this type to the median household income for each peer market reveals that none of the regions compared had a median household income above the income needed to afford cost of living. However, the gap varied from 22% below what is needed in Orange County to 38% below what is needed in Los Angeles County. In San Bernardino County, the median household income of approximately $85,000 is 60% less than the approximate annual income needed of $128,000.
ALL REGIONS COMPARED HAVE MEDIAN INCOME BELOW THE SALARY NEEDED TO AFFORD BASIC NECESSITIES
Regional Comparison of Median Household Income Compared to Income Needed for a Household with Two Adults (Both Working) and Two Children to Afford Cost of Living, 2023
SOCIOECONOMIC DETAIL
Of the 12 household structures for which the income needed to afford the cost of living was calculated, only single adults with no children can earn less the median household income and afford basic needs in San Bernardino County. A sampling of four household structures is displayed in the accompanying chart.
ONLY SINGLE ADULTS WITHOUT KIDS CAN EARN LESS THAN MEDIAN AND STILL AFFORD BASIC NEEDS IN SAN BERNARDINO COUNTY
Median Household Income Compared to the Income Needed to Afford Cost of Living for Selected Household Types in San Bernardino County, 2023
Median Income for Seniors and Families
Compared to the countywide median household income of $85,069, senior households, where the householder is 65 years of age or older, have a substantially lower income ($62,493). However, seniors are also more likely to have assets, including owning their own home rather than renting (78% vs. 58% of non-seniors) and owning their home outright, without a mortgage (49% vs. 23% of non-senior homeowners).
With a median annual income of $82,449, families with children under 18 years of age have a similar median income as all households countywide.
[1] All income data in this indicator are inflation-adjusted to 2023 dollars, such that $1,000 earned in 2014, for example, has the same buying power as $1,287 in 2023. “Real” refers to income adjusted for inflation.
[2] Cost of living is measured using cost estimates conducted by the Living Wage Institute (https://livingwage.mit.edu). For each state, county, and metro area in the U.S., the institute estimates the annual income needed to cover the costs of a family’s basic needs where they live for 12 different household structures – such as, with or without children, singles or couples, and with one or both adults working. Based on recommendations from the Living Wage Institute researchers, for the geographic comparison, one household structure was used – two adults (both working) and two children. To expand analysis opportunities for readers, four additional household structures were selected to compare to median household income for San Bernardino County. The estimates for the income needed to afford basic cost of living include the following expenses: food, child care, medical, housing, transportation, civic engagement (entertainment, pets, hobbies, etc.), internet and mobile phone, other necessities (clothes, personal care, furniture, etc.), and taxes. Since the sources for the cost data vary, the cost of living estimate is based on a combination of vintages, from 2019 through 2024, with the majority of data sourced to 2023 and 2024 datasets (https://livingwage.mit.edu/pages/methodology).