American Teachers Can’t Afford Homes In Some Of America’s Largest Housing Markets
The latest Employment Situation Summary report revealed the average American income has grown 3.2% over the year. Unfortunately, new data from Trulia indicates as home price acceleration outpaced wage growth. Hardest hit are American teachers, first responders, and restaurant workers. All three groups are still struggling to afford to live in the communities they serve.
Trulia’s analysis shows the list price for a for-sale home nationwide rose 19.2% in the last three years. However, wages for American teachers and others have only increased by 6.7% over that same period. This is due to drastic cuts to education spending across America.
American teachers earning an annual salary of $38,640 have to spend 46.1% of their income on a $285,000 home.
American teachers also can only afford less than half the homes in 42 of the top 55 communities reviewed.
Only Restaurant Workers Have It Worse Than American Teachers
There is only one other group having a harder time than teachers. Restaurant workers can only afford 5% or less of the homes in the same market.
The simple answer may appear to be for these people to move a more affordable market. However, Trulia highlights that lower-priced markets also come with lower wages.
Housing affordability is once again a national concern. It doesn’t just impact a handful of American teachers and restaurant workers.
A recent analysis from Moody’s Investors Services has discovered the era of unusually affordable housing has ended.
And Moody’s findings support Trulia’s data. Trulia determined that not even six-figure salaries in California ensure citizens affordable housing.
In fact, California first responders that earn more than $100,000 a year. However, they can only afford less than 25.1% of homes on their respective markets.