Teachers are at Ground Level of Housing Affordability Stats

We are all for the sentiment behind the “Red for Ed” movement. Not only is compensation for Arizona teachers near the bottom of the barrel, but student test scores for the state are among the lowest in the country. Admittedly not every problem is solved by throwing money at it, but there is irrefutable evidence that teachers here, and in many other parts of the country, are severely underpaid and under-appreciated. Floods of experienced teachers have abandoned the profession over the past decade, not because they’ve lost their love for teaching, but because they simply can’t afford to stay.

I’ve been made hyper-aware recently, through my work with Heroes Home Advantage, that teachers are in need of far better resources just to place them on a level with other workers of equal education, skill and responsibility. Through the Heroes program I’ve pledged to assist Firefighters, Law Enforcement and Emergency Responders, Health Care Professionals, Veterans and Active Military, as well as Teachers, with cash-back contribution to their closing costs when they buy or sell a home. Sadly, teachers fall far shorter than any others in this group when it comes to housing affordability.

— click to learn how you can get cash back when you buy or sell a home —

The interactive infographic below illustrates what many of us in Arizona have been aware of for years… the number of homes affordable on a Teacher’s salary is less than a quarter of available listings.

Affordability Crunch Felt From Teachers to Tech Workers

By Suzanne De Vita. Editor’s Note: This was originally published on RISMedia’s blog, Housecall. See what else is cookin’ now at blog.rismedia.com:

How is this for a statistic? Close to 70 percent of markets today are unaffordable. Incomes are being far outpaced by prices—a gap that persists even as employment gains ground—and inventory is rapidly vanishing. By all accounts, affordability is one of the critical issues in real estate this spring.

For buyers, their careers directly impact what they can purchase—and, generally, the closer you are to your job, the more you pay for property. So, is affordability better for those in higher-paying professions? According to a new report* by Trulia, the answer depends on location.

In Dayton, Ohio, for example, doctors can afford almost 100 percent of the listings on the market, but in Chicago, the amount dwindles to 87.4 percent, and in San Francisco, the share tumbles to 30.5 percent.

What about Silicon Valley workers? Affordability is a challenge for them as well. In San Francisco, just 4.8 percent of listings are affordable for computer programmers; in San Jose—the hub for gigs in tech—the amount is higher, but lean, at 11.8 percent. (Developers have more prospects in Seattle, where 30.9 percent of listings are within reach.) By contrast, in Dayton, computer programmers can afford 87 percent of listings; in Chicago, 55.8 percent.

In the Bay Area—where, according to Zillow, appreciation is 10.4 percent year-over-year—big bucks-earning MDs and programmers are pricing out. How, then, can lower-paid professionals get their piece of the pie? Of the area’s listings, just 2.4 percent are attainable for first responders, 0.7 percent are feasible for teachers and 0.1 percent for restaurant workers.

Affordability by occupation:

*Analysts assumed a debt-to-income (DTI) ratio of 31 percent or less, and a 20 percent down payment on a 30-year, fixed mortgage with 4.44 percent interest. Their calculations also included homeowners insurance and property taxes. For more information, please visit www.trulia.com.

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com.