Income required to buy typical home surged in 96% of housing markets.
Two-bedroom rental costs rose 10% or more in more than 56% of markets.
The National Housing Conference (NHC) announced its Paycheck to Paycheck database, previously updated only on a quarterly basis, now offers an annual snapshot of housing affordability across the country through year over year data comparisons. This snapshot sheds light on the growing impact of rising housing costs on homebuyers and renters. The new data tool shows the income needed to purchase a typically-priced home increased in 96% of the tracked homeownership markets in June 2023 compared to June 2022. The average cost for a two-bedroom rental rose by 10% or more in 56% of the markets studied.
“By comparing wage data with housing costs, our Paycheck to Paycheck database demonstrates the stark reality of the affordability crisis faced by many Americans,” said NHC President and CEO David M. Dworkin. “While nominal wage increases have been observed in response to higher labor costs, soaring levels of inflation have significantly eroded those gains. As both housing and rental prices skyrocket, the dream of a decent home is slipping out of reach for far too many hardworking individuals and families.”
According to NHC’s Paycheck to Paycheck database, the income needed to afford a typically-priced home increased an average of 11% when compared to last year. In Fayetteville, N.C., the income needed to afford a home with a 10% downpayment went from $61,788 to $74,539, a 21% increase and the highest of the tracked areas. Anniston-Oxford-Jacksonville, Ala., Columbia, Mo., and Hinesville, Ga. each follow with increases of 19%.
To afford a typical home in Seattle, Wash., one must be prepared to pay $703,595, which necessitates an annual income of $234,800 to consider homeownership as a viable option or $98,200 to rent a two-bedroom apartment. This represents a 20% surge in rental costs from 2022, further intensifying the barriers faced by Seattle firefighters and teachers, who are now unable to afford rental rates for two-bedroom apartments—a viable option that was within their reach just a year ago.
Similarly, to afford a typical home in the Tampa-St. Petersburg, Fla., area, one must be prepared to pay $370,418, which necessitates an annual income of $123,614 to consider homeownership as a viable option or $66,360 to rent a two-bedroom apartment. This represents a 23% surge in rental costs from 2022, further intensifying the barriers faced by many teachers, police and sheriff’s patrol officers, postal service clerks, human resources specialists, and others who are now unable to afford rental rates for two-bedroom apartments—an attainable choice that was easily accessible to them merely a year ago.
“In light of the data provided by our Paycheck to Paycheck database, it is evident that the housing affordability crisis continues to loom over aspiring homeowners and renters across the nation. Seattle and Tampa-St. Petersburg are just two examples of the many metropolitan areas where the barriers to affordable housing have intensified. The urgent need for comprehensive and sustainable solutions to address the affordability crisis has become increasingly apparent,” said Dworkin.
NHC’s Paycheck to Paycheck database examines 150 occupations across 390 metropolitan areas illustrating the ability – or lack thereof – of working families to afford typical housing in metropolitan areas across the country by comparing wage data and housing costs. To determine how rising housing costs are impacting your city and its residents, visit NHC’s Paycheck to Paycheck database at www.nhc.org/paycheck-to-paycheck/.