Households in San Francisco earning more than 400 million won a year now qualify for public child care subsidies. The artificial intelligence industry has expanded the city's wealth, but rising housing and living costs are deepening the financial strain on families — a paradox playing out in one of the nation's richest cities.
Half of Child Care Costs Covered at $325,000
San Francisco covers half of child care costs for families of four earning up to $325,000 (about 431 million won) a year, according to The New York Times on the 26th. Households earning up to $235,000 (about 311 million won) receive the full cost. The threshold extends to incomes more than 3.5 times the U.S. median household income, a measure of how heavily child-rearing costs now weigh on families.
One couple — a city-employed psychotherapist and a part-time pediatric nurse — earn less than $235,000 combined but spend $6,400 (about 8.48 million won) a month on mortgage payments and $2,200 (about 2.92 million won) on car-related expenses.
Without the child care subsidy, they said, they would have had to leave the city. Living as middle class in San Francisco, they said, requires an annual income of $500,000 for a family of four.
The city spends $238 million (about 315 billion won) a year supporting some 550 child care facilities and about 9,300 children. The program saves families up to $36,000 (about 47.7 million won) per child annually.
Mayor Daniel Lurie said the policy aims to keep essential workers such as teachers, nurses and police officers from leaving the city because of living costs.
Rents Near 8 Million Won as City Declares Emergency
An influx of workers at AI companies and expanding investment are pushing up housing demand, while supply grows slowly.
Median monthly rent for a one-bedroom apartment ranges from $4,060 to $4,495 (about 5.38 million to 5.95 million won) on real estate platforms, 2.4 times the U.S. average of $1,900 (about 2.51 million won). Two-bedroom units have climbed to $5,700 (about 7.55 million won) a month. Annual rent increases reached 21.9% and 22.6% respectively, far above the 0.4% national rate for one-bedroom units.
Permits for new housing construction take an average of 280 days, another factor cited as blocking supply expansion. The figure is 134 days in San Diego and 91 days in Austin.
Lurie declared a rental emergency in September. The city is capping annual increases on rent-controlled housing at 10% and spending $27 million (about 36.3 billion won) to fill gaps left by the end of federal housing voucher support.
Housing costs are also cited as squeezing families with children in South Korea. Seoul's price-to-income ratio (PIR) stands at 10.43 and its rent-to-income ratio (RIR) at 22.7%, according to KB Real Estate. Analysts note that expanding child-rearing support will do little to ease household burdens unless soaring housing costs are addressed.
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