The National Housing Conference (NHC) reports that middle-class Americans are now facing a housing affordability crisis once reserved for low-income families. According to the NHC’s new “Priced Out: When a Good Job Isn’t Enough” report, rising home prices and rents have left millions unable to buy or even rent a modest home across the nation.
“Priced Out: When a Good Job Isn’t Enough” shows that since 2019:
- Thirty-two percent of 390 metropolitan areas now require double the salary once needed to afford a home.
- Close to half (45%) of metropolitan statistical areas (MSAs) require six-figure incomes to purchase a typically priced home.
- One hundred and fifty of the tracked MSAs requiring six figure incomes are outside of California, and 64 are outside of coastal communities that have historically contended with prohibitive costs.
- Forty-seven percent of tracked occupations cannot afford a two-bedroom apartment, with 32 MSAs requiring a salary exceeding $75,000.
- Since 2019, 85 MSAs require a 50% increase in salary or higher to afford a one-bedroom apartment, and 59 MSAs require an increase of 50% or more salary to afford a two-bedroom apartment.
“These findings underscore the depth and breadth of the housing crisis, which is increasingly pricing out working families across the country—regardless of geography or profession,” said David M. Dworkin, President and CEO of the National Housing Conference. “The housing affordability crisis is now hitting families in every metro area, for nearly every occupation.”
Data for NHC’s report comes from its Paycheck to Paycheck database, which compares annual wages and housing costs for nearly 300 occupations in 390 MSAs, showing where working families can—or cannot—afford typical housing.
The report also shows a sharp drop in the share of sampled occupations able to achieve homeownership. In 2019, 37% of tracked occupations could afford to buy a home with a 10% downpayment; by 2024, that number had plummeted to just 14%.
Zeroing in on Five U.S. Metros
Utilizing data from NHC’s Paycheck to Paycheck database, the report examines affordability gaps in five diverse U.S. metro areas, illustrating that even occupations requiring advanced education and training are increasingly unable to afford rent or homeownership.
The report offers case studies of five theoretical workplaces in Asheville, North Carolina; Boise City, Idaho; Houston, Texas; Tampa, Florida; and Seattle, Washington. These include a construction site, middle school, auto shop, law firm, and dental office—representative of the broad cross-section of American labor.
“The five MSAs examined in this report represent vastly different markets. Yet, unaffordability is a strong and debilitating common factor throughout the U.S. Housing groups have long warned that without increasing supply, housing will only become more expensive. In order to afford fairly priced rentals and typically priced homes, working households simply do not earn enough income to keep up,” said the report.
Among the findings:
- Asheville, North Carolina: Half of construction site workers now earn less than the $59,840 needed to rent a one-bedroom apartment. Civil engineers earning nearly $100,000 still fall short of homeownership.
- Boise, Idaho: Home prices increased by over 60% in just five years. A middle school staff saw teachers, librarians, and counselors priced out of two-bedroom rental units by 2023, with librarians still unable to afford rent in 2024.
- Houston, Texas: Despite high rates of homebuilding, only 28 of 286 occupations can afford to purchase a home with 10% down in 2024. Order Clerks and Customer Service Representatives cannot afford even a one-bedroom rental.
- Seattle, Washington: Not a single occupation tracked could afford to buy a home in 2024, including dentists earning in excess of $200,000. Only 50 out of 285 occupations can afford a two-bedroom rental.
- Tampa, Florida: Only 11 of 284 occupations can afford to buy a home. Legal Assistants, earning $62,420, cannot afford rent for a one-bedroom apartment.
“This is no longer a problem we can frame as affecting only certain groups or regions. From big cities to small towns, Americans who work hard, earn solid incomes, and contribute to their communities are finding that neither renting nor buying is within reach,” Dworkin added. “If we don’t address the supply shortage, reform zoning, and invest in housing at all income levels, we are facing a fundamental threat to the health and sustainability of our economy.”
Click here for more on NHC’s “Priced Out: When a Good Job Isn’t Enough” report.
