Top Earners Struggle With Housing Costs

Top Earners Struggle With Housing Costs

Computer technology, engineering, and legal jobs are among the highest-paying in the nation. You’d think workers in these sectors wouldn’t have trouble affording a home—but that’s not always the case, according to a new LendingTree analysis. The company ranked the nation’s 50 largest metros based on how affordable homes are to each area’s highest-paid workforce.

Workers in the most lucrative industries who live in one of the 50 cities LendingTree analyzed can expect to earn $900 a month more than the base income they would need to afford a median-priced home in their area, the analysis finds. Architects and engineers are the highest-paid professionals in 19 of the nation’s 50 largest metros. Those professionals make an average of $1,000 more a month than the base income they would need to afford a home in their area.

But even with a high-paying job, some workers still struggle. For example, in San Francisco and San Jose, Calif., a median-priced home costs an average of $269 more a month than what a worker earning a median salary in those cities’ highest-paid industries could afford.

Take a closer look at the study’s findings of metros where housing is the least affordable to those who work in the cities’ highest-paid industries:

1. San Jose

• Highest-paid industries: Computer technology and math
• Median earnings in highest-paid industries: $123,052
• Median home value: $815,000
• Likely monthly payment for a median-priced home: $3,207
• Affordable monthly payment for a median income earner: $2,871
• Monthly payment deficit: $336

2. San Francisco

• Highest-paid industry: Legal
• Median earnings in highest-paid industry: $112,168
• Median home value: $716,500
• Likely monthly payment for a median-priced home: $2,820
• Affordable monthly payment for a median income earner: $2,617
• Monthly payment deficit: $203

3. San Diego

• Highest-paid industries: Architecture and engineering
• Median earnings in highest-paid industries: $86,596
• Median home value: $484,900
• Likely monthly payment for a median-priced home: $1,908
• Affordable monthly payment for a median income earner: $2,021
• Monthly payment surplus: $112

4. Los Angeles

• Highest-paid industry: Legal
• Median earnings in highest-paid industry: $97,707
• Median home value: $537,000
• Likely monthly payment for a median-priced home: $2,113
• Affordable monthly payment for a median income earner: $2,280
• Monthly payment surplus: $166

5. Boston

• Highest-paid industries: Computer technology and math
• Median earnings in highest-paid industries: $91,015
• Median home value: $393,500
• Likely monthly payment for a median-priced home: $1,549
• Affordable monthly payment for a median income earner: $2,124
• Monthly payment surplus: $575

On the other hand, median income earners in the highest-paid industries in Houston, Detroit, and Washington, D.C., tend to have the easiest time affording a median-priced home. Those workers tend to earn $1,300 more a month than what they would need to afford a median-priced home.

Metros ranked by home affordability for those working in that metro’s highest paid industry 

Rank	Metro	Industry	Median Earnings-yearly	Median home value-2017	Monthly payment amount	Affordable monthly payment	Home Payment Monthly Surplus/Deficit
1	Houston	Architecture and engineering occupations	$92,747	$166,500	$655	$2,164	$1,509
2	Detroit	Architecture and engineering occupations	$87,657	$149,900	$590	$2,045	$1,455
3	Washington, D.C.	Legal occupations	$124,118	$397,900	$1,566	$2,896	$1,330
4	Hartford, Conn.	Legal occupations	$95,746	$244,300	$961	$2,234	$1,273
5	Chicago	Legal occupations	$91,119	$222,600	$876	$2,126	$1,250
6	Dallas	Architecture and engineering occupations	$82,897	$174,500	$687	$1,934	$1,248
7	St. Louis	Architecture and engineering occupations	$79,246	$162,600	$640	$1,849	$1,209
8	New Orleans	Architecture and engineering occupations	$82,243	$184,100	$725	$1,919	$1,194
9	Buffalo, N.Y.	Law enforcement workers including supervisors	$73,254	$135,000	$531	$1,709	$1,178
10	Pittsburgh	Legal occupations	$73,485	$142,100	$559	$1,715	$1,155
11	Birmingham, Ala.	Legal occupations	$74,954	$152,200	$599	$1,749	$1,150
12	Oklahoma City	Architecture and engineering occupations	$73,776	$146,800	$578	$1,721	$1,144
13	Atlanta	Legal occupations	$79,997	$184,200	$725	$1,867	$1,142
14	Charlotte, N.C.	Computer and mathematical occupations	$78,499	$177,000	$697	$1,832	$1,135
15	Cincinnati	Architecture and engineering occupations	$75,298	$158,800	$625	$1,757	$1,132
16	Indianapolis	Architecture and engineering occupations	$73,250	$148,500	$584	$1,709	$1,125
17	Cleveland	Architecture and engineering occupations	$72,157	$142,400	$560	$1,684	$1,123
18	Raleigh, N.C.	Computer and mathematical occupations	$84,654	$224,800	$885	$1,975	$1,091
19	Kansas City, Mo.	Architecture and engineering occupations	$73,979	$166,800	$656	$1,726	$1,070
20	Memphis, Tenn.	Computer and mathematical occupations	$69,140	$138,200	$544	$1,613	$1,069
21	Columbus, Ohio	Legal occupations	$73,874	$166,600	$656	$1,724	$1,068
22	Phoenix	Architecture and engineering occupations	$81,759	$216,600	$852	$1,908	$1,055
23	Louisville, Ky.	Architecture and engineering occupations	$71,266	$155,700	$613	$1,663	$1,050
24	Austin, Texas	Architecture and engineering occupations	$84,525	$240,500	$946	$1,972	$1,026
25	Las Vegas	Law enforcement workers including supervisors	$79,124	$212,300	$836	$1,846	$1,011
26	Baltimore	Computer and mathematical occupations	$91,218	$285,700	$1,124	$2,128	$1,004
27	San Antonio	Health diagnosing and treating practitioners and other technical occupations	$68,040	$152,400	$600	$1,588	$988
28	Minneapolis	Legal occupations	$80,265	$230,700	$908	$1,873	$965
29	Richmond, Va.	Architecture and engineering occupations	$78,142	$220,400	$867	$1,823	$956
30	Philadelphia	Computer and mathematical occupations	$81,365	$240,700	$947	$1,899	$951
31	Nashville, Tenn.	Legal occupations	$73,857	$197,000	$775	$1,723	$948
32	Jacksonville, Fla.	Architecture and engineering occupations	$69,365	$174,000	$685	$1,619	$934
33	Tampa, Fla.	Computer and mathematical occupations	$67,404	$162,600	$640	$1,573	$933
34	Sacramento, Calif.	Health diagnosing and treating practitioners and other technical occupations	$97,077	$339,500	$1,336	$2,265	$929
35	Orlando, Fla.	Architecture and engineering occupations	$70,184	$180,100	$709	$1,638	$929
36	Seattle	Computer and mathematical occupations	$101,107	$365,400	$1,438	$2,359	$921
37	Milwaukee	Management occupations	$72,400	$197,800	$778	$1,689	$911
38	Riverside, Calif.	Law enforcement workers including supervisors	$87,410	$293,800	$1,156	$2,040	$883
39	New York	Legal occupations	$102,615	$413,200	$1,626	$2,394	$768
40	Virginia Beach, Va.	Architecture and engineering occupations	$72,801	$236,600	$931	$1,699	$768
41	Providence, R.I.	Architecture and engineering occupations	$76,003	$257,300	$1,013	$1,773	$761
42	Portland, Ore.	Legal occupations	$83,118	$312,500	$1,230	$1,939	$710
43	Salt Lake City	Legal occupations	$72,268	$255,100	$1,004	$1,686	$682
44	Miami	Law enforcement workers including supervisors	$68,838	$236,500	$931	$1,606	$675
45	Denver	Computer and mathematical occupations	$81,747	$317,100	$1,248	$1,907	$659
46	Boston	Computer and mathematical occupations	$91,015	$393,500	$1,549	$2,124	$575
47	Los Angeles	Legal occupations	$97,707	$537,000	$2,113	$2,280	$166
48	San Diego	Architecture and engineering occupations	$86,596	$484,900	$1,908	$2,021	$112
49	San Francisco	Legal occupations	$112,168	$716,500	$2,820	$2,617	-$203
50	San Jose, Calif.	Computer and mathematical occupations	$123,052	$815,000	$3,207	$2,871	-$336

Source:

“Even If They Work in a High-Paying Field, Housing Is Still Unaffordable for Some Americans,” LendingTree (Sept. 16, 2019)

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Home Offices are in High Demand

Home Offices are in High Demand

Home Sales Up for Second Consecutive Month

Home Sales Up for Second Consecutive Month

Existing-home sales rose in August, marking two consecutive months of gains, even as a limited number of homes for sale remains a pressing issue on the market, the National Association of REALTORS® reported Thursday. Three of the four major regions of the U.S. saw an uptick last month, the West being the only region not to see an increase in sales.

“As expected, buyers are finding it hard to resist the current [mortgage] rates,” says Lawrence Yun, NAR’s chief economist. “The desire to take advantage of these promising conditions is leading more buyers to the market.”

Total existing-home sales—completed transactions that include single-family homes, townhomes, condos, and co-ops—increased 1.3% in August from July, reaching a seasonally adjusted annual rate of 5.49 million. Sales are up 2.6% from a year ago.

But while sales are up, housing inventory numbers remain low. It’s “pushing up home prices,” Yun says. “Home builders need to ramp up new housing, as the failure to increase construction will put home prices in danger of increasing at a faster pace than income.”

Here’s a closer look at additional housing indicators from NAR’s latest housing report:

• Home prices: The median existing-home price for all housing types in August was $278,200, up 4.7% from a year ago.
• Inventories: Housing inventories at the end of August fell to 1.86 million, a 2.6% decrease from 1.91 million a year ago. Unsold inventory is at a 4.1-month supply at the current sales pace.
• Days on the market: Forty-nine percent of homes sold in August were on the market for less than a month. The average days on the market in August was 31 days, up from 29 days a year ago.
• First-time buyers: First-time buyers comprised 31% of sales in August, matching levels from a year ago.
• All-cash transactions: All-cash sales made up 19% of transactions in August, slightly down from 20% a year ago. Investors make up the bulk of all-cash sales and purchased 14% of homes in August, up from 13% a year ago.
• Distressed sales: Foreclosures and short sales comprised 2% of sales in August, down from 3% a year ago.

More New Homes

More New Homes

Home Flips Are Decreasing

Home Flips Are Decreasing