Why Food Insecurity Is So High in Silicon Valley

Silicon Valley is known for being one of the wealthiest regions in the country, yet 1 in 6 residents relies on Second Harvest of Silicon Valley for food assistance, half of whom are kids and seniors. In fact, food insecurity in the area is higher than the national average. 

The reasons behind this high level of need are complex and involve a mix of socio-economic factors. Here’s a breakdown: 

Uneven job growth

Silicon Valley has seen massive job growth due to the success of tech companies, but the job expansion generated by the tech industry did not benefit everyone.  

• Jobs in the tech sector have grown at nearly twice the rate of overall employment since the start of the Great Recession recovery period in 2010. Tech jobs now comprise 28% of Silicon Valley’s total jobs. Approximately one in ten employed Silicon Valley residents is a software developer.* 
• Tech jobs in Silicon Valley stand 57% higher than their recession-era low, while overall employment has risen by a more modest 33%.* 
• The share of Silicon Valley residents with a bachelor’s degree or higher (56%) increased by more than 10% since 2010, and 37% since 1970.* 

• Silicon Valley’s household income inequality reached an all-time high in 2022 after more than doubling over the prior three decades.*  
• The top 10% of earners in Silicon Valley hold 71% of the collective wealth.* 
• The income gap between residents of varying educational attainment levels is much wider in Silicon Valley than in California or the United States as a whole, with a $56,500 gap between the median income of those with a bachelor’s degree and those with only a high school diploma.* 

Housing 

The amount of housing hasn’t kept up with the level of growth in this area, leading to skyrocketing prices – Silicon Valley has one of the highest costs of living in the U.S. When households spend a large portion of their income on housing, it reduces their ability to afford other necessities. Most financial experts recommend spending about 30% of household income on housing, but in Silicon Valley, it often ends up being a much higher percentage: 41% of Silicon Valley renters are burdened by housing costs, meaning they pay more than 30% of their income on housing.*  

This level of spending on housing strains budgets and leads to stressful or tenuous situations. In a recent survey of Second Harvest clients, more than 50% of respondents reported they are worried about being able to pay next month’s rent or mortgage. “Every day I don’t know if I should buy food or if I should pay the rent,” said Martha, a single mom of two and Second Harvest client.  

• San Jose and San Francisco are the two most expensive major metropolitan regions in the country, based on median monthly housing costs in 2023 (and both have grown by +16% since 2019).*  
• In a survey of Silicon Valley residents, 96% of respondents said the cost of housing is a serious problem.  
• In 2024 the median home price in Silicon Valley hit $1.92 million, making home ownership out of reach for most. Fewer than 26% of first-time home buyers can afford a median-priced home. Whether or not a person owns their home is a significant factor in their long-term financial security, housing stability, ability to retire, and even their health.* 
• A wage of at least $55 per hour (or approximately $115,300 annually) would be required in order to afford an average one-bedroom apartment in Silicon Valley and not be burdened by housing costs, leading many to live with roommates, occupy unconventional living spaces like garages, or share one dwelling amongst multiple families. One out of every sixteen Silicon Valley households is overcrowded, with more than two people to a bedroom.* 
• In 2023 the median wage of service workers in Silicon Valley was about $3,875 a month before taxes, while the average rent for a one-bedroom apartment in Silicon Valley was just below $3,000/month.+  

Rising costs and stagnant wages 

The increased cost of everyday essentials like food, gas and utilities take up a much larger portion of low-income household budgets so even small price increases can be the difference between being able to scrape by or not. In a recent Second Harvest survey, nearly 60% of employed respondents reported they can’t cover their monthly household expenses. Felipa, a mother and Second Harvest client, shared “The electric bill is very high. We are paying a lot more for power. Before we would pay $200 to $250. But now we’re paying $700. It’s incredible.”

• Inflation-adjusted per capita income remained largely stagnant, and median household income actually declined slightly in 2024 after accounting for rising costs.* 
• Inflation-adjusted per capita income remained flat in 2023 as a result of a +6.1% rise in the regional Consumer Price Index.* 
• Lower income households spend a bigger proportion of their budgets on food while being able to afford less food overall. In 2023, low-income families in the U.S. spent 26% of their income on food, while high-income families spent only 6%; however, the actual dollar amount spent by the latter was approximately four times higher.* 
• Silicon Valley childcare costs have tripled over the past two decades, rising twice as quickly as the regional inflation rate. The cost of full-time childcare at licensed infant care facilities rose to $31,200 in 2024.* 
• Gasoline prices in the Bay Area rose by 29% in 2022, and despite a slight 3% decrease the following year, they remained 25% above pre-pandemic levels. This has contributed to a 10% increase in overall transportation costs for Silicon Valley families, with the average annual cost for a family of four reaching nearly $10,200.* 
• In 2024, an estimated 65% of Bay Area residents believed transportation had become more difficult to afford.* 

Employment often isn’t enough to get by

Employment in Silicon Valley does not necessarily equal high wages. Thi, a Second Harvest client shared, “We can’t afford many things because our pay rate is lower than the current market price and inflation.” 

And when households aren’t earning enough to save money, there is little to fall back on in times of difficulty. In a recent survey of Second Harvest clients, nearly 60% of respondents reported they have less than $100 in savings. Lucia, a mother of three, shared, “We can’t save. It’s like day by day for us. We don’t have any money to save. My husband is not working as much as he used to so there’s no money to save. He used to have a lot of work and get a lot of overtime, but not anymore.” 

• Employment does not equal earning a living wage — nearly one-third of all  Silicon Valley households do not earn enough money to meet basic needs without assistance.* 
• Dennis, a husband and father of three who works as a taxi driver said, “I work seven days a week, and I’m sorry to say it, but that’s not enough. I work sometimes 10-14 hours a day, but it’s still not enough. I start work at 5:00 in the morning and sometimes work until seven or eight at night.”  

Underfunded Social Services 

Given the cost of living in the Bay Area, even people working can have difficulty paying all their bills, while earning too much to qualify for government programs. Those that do qualify may only receive minimal amounts. Yen, a wife, mother and grandmother, shared, “[Food stamps] are not enough to buy fresh fruits and vegetables for my family.” Similarly, An, also a Second Harvest client, said, “I get CalFresh, but only $25 a month. It’s not very much but it’s all I get.” 

Meanwhile, non-profits are struggling to keep up with the demand for assistance.  

• There is a misalignment between the eligibility criteria for public assistance programs and the need for food assistance in Silicon Valley. In 2022, an estimated 24% of adults and 34% of children were at risk for food insecurity but ineligible for benefits through the CalFresh (aka food stamps).+   
• Insufficient federal funding for support programs including CalFresh, a program designed to be the first line of defense against hunger, has placed Second Harvest in the position of being the primary food safety net for many families in our region. Support from WIC (the Special Supplemental Nutrition Program for Women, Infants, and Children) is also insufficient, increasing the pressure on Second Harvest.  
• Mothers who visit Second Harvest distributions report having to purchase additional milk for their children beyond what WIC provides or go without it.   

All of these factors disproportionately impact households living on fixed incomes or earning lower wages. When money gets tight, many of our neighbors have to make tough choices. Food budgets are often the first thing people cut to make room for other essentials like rent, utilities, childcare or medical bills. This can mean skipping meals or resorting to fast food just to keep up with paying the bills.

Second Harvest is committed to serving our community for as long as hunger exists in Silicon Valley. For more than 50 years, we have been part of our community, ensuring that neighbors have access to nutritious food.

---

*Source: 2025 Joint Venture Silicon Valley Index 
+Source: 2024 Joint Venture Silicon Valley Index