Home >> Daily Dose >> Teachers, First Responders, and Restaurant Workers Facing Affordability Struggles
Print This Post Print This Post

Teachers, First Responders, and Restaurant Workers Facing Affordability Struggles

A new report by Trulia states that restaurant workers are the most impacted by wage gaps in the housing market, with less than of the professional 5% able to buy a home in more than half of the markets surveyed.

Overall, the study reported that occupations such as teachers, first responders, and restaurants workers struggle to afford homes. Teachers can afford fewer than half of the homes on the market in 42 of the 55 largest housing markets studied.

First responders can earn more than $100,000 in California, but in the state’s three most expensive markets—San Jose, San Francisco, and Los Angeles—those first responders can afford only 10.6%, 17.6%, and 25.2% of homes on their respective markets.

Affordability continues to be an issue across the U.S., as the list price for a for sale-home rose 19.2% in the last three years. Wages increased 6.7% over that same period of time.  

According to Trulia, a worker earning the average U.S. annual salary of $38,640 would spend 46.1% of their income on home costs on an average-priced home of $285,000, which is a 6.5% increase from three years ago. Trulia states homeowners should not spend more than 30% of their income on housing costs.

Pittsburgh is among the most affordable of markets, with teachers being able to afford 64.2% of homes, first responders 63.3%, and restaurant workers 24.4%.

Memphis, Tennessee, is the most affordable market for restaurant workers, with 25.1% able to afford a home.

Other affordable markets include Cleveland; Detroit; Buffalo, New York; Rochester, New York; and Birmingham, Alabama.

The most expensive market is San Jose with an average home price of more than $1 million. First responders, teachers, and restaurant workers combined can afford less than 12% of the homes on the market.

Teachers and restaurant workers in San Jose combined can afford less than 1% of the homes on the market.

While home affordability in California may be a struggle for certain occupations, a report by First American Financial Corporation found that the market that is leading the nation for potential home buyers is California, as four cities—San Jose, Los Angeles, San Francisco, and San Diego—where among six whose Real House Price Index decreased and affordability increased.

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.

Check Also

Analyzing HUD’s Proposed Revisions to Fair Housing Rule

While there are those that seem to agree that local zoning laws impede affordability, to some, the issue is a partisan one.


With daily content from MReport, you’ll never miss another important headline in originations, lending, or servicing. Subscribe to MDaily to begin receiving a complimentary daily email containing the top mortgage news and market information.