The typical teacher in the U.S. can now afford nearly half of the apartments within commuting distance of their school, according to a new report by Redfin, a technology-powered real estate brokerage. The report shows a modest improvement in rental affordability, with the percentage rising from 40.7% in 2023 to 47.9% in 2024. However, homeownership remains a distant dream for most educators, with only 14% of homes near schools within their financial reach.
Rental affordability on the rise
The slight uptick in rental affordability is attributed to a combination of stagnant rents and a modest increase in teacher salaries. The median teacher salary in the U.S. rose by 3.8% year over year to $64,266 in 2023, while asking rents have largely plateaued. However, despite this improvement, rental affordability for teachers remains below pre-pandemic levels. In 2019, the average teacher could afford 58% of nearby apartments.
“While there is a small improvement in housing affordability for teachers who rent, it’s only a drop in the bucket,” said Redfin Senior Economist Sheharyar Bokhari. “Homeownership remains out of reach for many educators who can’t work remotely from more affordable areas. Building affordable housing near schools should be a priority for U.S. policymakers, but addressing the longstanding issue of underfunded teacher salaries is equally critical.”
Portland leads, Miami lags in rental affordability
The report highlights significant disparities in rental affordability across the country. In Portland, Oregon, teachers can afford 91.3% of apartments near their schools, the highest rate among the 33 metros analyzed. This is attributed to Portland’s relatively high median teacher salary of $95,486 and falling rents, which dropped by 3.8% year over year to a median of $1,799 in July.
In contrast, Miami is the least affordable metro for teachers looking to rent, with the average educator able to afford just 0.2% of nearby apartments. Miami also saw the largest year-over-year decline in teacher salaries, dropping 11.9% to $53,297. This decline, combined with high housing costs, makes it one of the most challenging places for teachers to find affordable housing.
Homeownership remains elusive for teachers
While rental affordability has improved, the prospect of homeownership remains bleak for many teachers. The report reveals that the average teacher can only afford 14.3% of homes for sale within commuting distance of their school, a slight decrease from 14.4% in 2023 and a sharp decline from 39.1% in 2019.
The affordability crisis is exacerbated by rising home prices, elevated mortgage rates, and a severe shortage of available properties. In July, the median monthly mortgage payment increased by 4.7% year over year, while asking rents saw a much smaller increase of 0.4%. The disparity between the costs of renting and buying is stark, with mortgage payments now 90.7% higher than pre-pandemic levels, compared to a 21.4% increase in asking rents.
Regional disparities in homebuying affordability
The report identifies the Rust Belt as the most affordable region for teachers looking to buy a home. In Cleveland, teachers can afford 61.1% of homes near their schools, the highest percentage among the 50 most populous metros. This is due to a combination of low home prices and relatively high teacher salaries. Conversely, California is home to three of the five least affordable metros for teachers. In San Jose, the average teacher can afford just 0.1% of homes for sale near their school, despite having one of the highest median salaries in the country.
Conclusion
While the modest increase in rental affordability offers some relief for educators, the broader issue of housing affordability, particularly homeownership, remains a significant challenge. As Redfin’s report underscores, targeted efforts to increase affordable housing and address the ongoing issue of underfunded teacher salaries are essential to ensuring that educators can live near the communities they serve.
Click here to view the report in its entirety.
