posted on August 9, 2005 10:15:17 AM new
Housing Prices High for Low Income Workers By JENNIFER C. KERR, Associated Press Writer
Tue Aug 9, 7:00 AM ET
WASHINGTON - Housing prices are far outstripping salary increases for low- and moderate-income jobs, putting the American dream of owning a home beyond the reach of teachers, firefighters and other community workers in many cities, said a study being released Tuesday.
The report, by a coalition advocating affordable housing, found that even cities once considered affordable, such as Tulsa, Okla., are rapidly becoming too pricey for lower-income workers such as janitors and retail sales employees.
The study found the median price of a home in the United States rose 20 percent in just 18 months, to $225,000. During the same period, wages for teachers, firefighters and nurses in most cities remained flat or increased slightly, but still fell far short of the annual salary needed to buy a home, the report from the Center for Housing Policy said.
For example, the median household income for a nurse rose 10 percent between 2003 and 2005, to about $36,000. For a firefighter, wages were flat, remaining at about $37,000 a year.
Those salaries don't come close to the $71,000 annual income needed to qualify to purchase a $225,000 home. The number is based on a down payment of 10 percent.
"It's not just the level of housing prices versus wages, but the fact that, especially in some areas, the housing prices are growing so much faster," said Barbara Lipman, the research director for the center.
"It's creating this dynamic where people who work these jobs must feel like they'll never catch up. The dream of home ownership may be unattainable," she said.
The study looked at incomes for more than 60 occupations, from janitors to accountants. It examined housing prices for nearly 200 metropolitan areas from the fourth quarter of 2003 to the first quarter of this year.
The least affordable places in the country were the usual suspects: San Francisco, Orange County, Calif., and Northeast cities such as New York and Boston.
Some of the most affordable places were in the Midwest, places like Waterloo, Iowa, Saginaw, Mich., and Lima and Youngstown, Ohio.
But Lipman said cities like Tulsa and Minneapolis, which had traditionally been thought of as more affordable, are now a concern.
"We're seeing a problem in areas where you'd expect and then beyond that because of the flatness of the wage growth and the increased pressures on home prices and rents," said Lipman. "Even though we have historically low interest rates, that doesn't solve the problem."
The study identified West Palm Beach, Fla., as one of the areas where there's a growing disparity between housing costs and sluggish wages for low- and moderate-income families.
The median home price in the Florida city has jumped nearly 32 percent since 2003, to $245,000. To qualify for a mortgage, a person would need to make about $77,600 a year, up from $57,600 in 2003. That would put a home out of reach for schoolteachers and police officers in the community, whose annual salaries are in the low to mid-40s.
The gap is even greater for nurses, who make about $36,000, and child care workers, whose salaries are in the low to mid-20s.
The Center for Housing Policy is the nonprofit research affiliate of the National Housing Conference, based in Washington.
posted on August 9, 2005 10:53:06 AM new
Ronnie, what a shock to read that nurses and teachers only make $36K! Are you sure? That's less than what I made 10 years ago. No wonder nobody can afford decent housing in the U.S. - that's awful!
posted on August 9, 2005 11:39:46 AM new
Most teachers in the public school systems make terrible money. I wouldn't do that job for what they are paid. Prices are going up, but salaries are not. But, we mustn't forget that the economy is good and getting better! Don't tell that to the poor and moderate income people. Is moderate-income the new buzz word for middle class?
A lot of people are caught in a cycle. We couldn't sell our home in our neighborhood for more than $80,000. We couldn't get a home in a better neighborhood for that amount of money so we're stuck here. It's the same story all over the country. I'm just glad that there are those who aren't blind to it.
Cheryl
[ edited by cblev65252 on Aug 9, 2005 11:40 AM ]
posted on August 9, 2005 11:41:33 AM new
That's what I have a problem with in some of these articles that make comparisons. The usually take the 'entry' level salaries and use those to compare to what things cost.
The clinical nurses I worked with more than 10 years ago made $62,000 a year and more if they were in management.
We had a neighbor who was a firefighter back in the mid '70's that pulled in over $75,000 a year.
What I believe some don't understand is that it's quite understandable with our failing educational system the chances of getting a well paying job are what's eliminating their prospects for achieving the American dream. These people can't expect to drop out of high school, or not go to college and think they should be earning top wages. Just not going to happen.
posted on August 9, 2005 12:01:03 PM new"What I believe some don't understand is that it's quite understandable with our failing educational system the chances of getting a well paying job are what's eliminating their prospects for achieving the American dream. These people can't expect to drop out of high school, or not go to college and think they should be earning top wages. Just not going to happen. "
There is no doubt that the educational system has failed some people in the U.S. But you can't fault the U.S. education system for today's poor job market.
It's true that college graduates will generally make a higher salary but with higher tuition and less financial aid available, fewer will be able to attend college.
posted on August 9, 2005 12:44:04 PM new
helen....I know this is a tough concept for you to grasp but I can blame whomever I want to.
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The facts are uneducated people are not going to get decent paying jobs. Period. We're overwhelmed with people who can only do mundane jobs.
And as I've proven over and over again....this President has increased educational funding by just about 1/2 of what was being spent.....and he's increased the funding for pell grants to help pay for college for the poor. Get your facts straight woman.
"Whenever the nation is under attack, from within or without, liberals side with the enemy. This is their essence." --Ann Coulter
And why the American Voters chose to RE-elect President Bush to four more years. YES!!!
posted on August 9, 2005 12:48:12 PM new
And I think the biggest support of people being able to afford housing is the continuing re-sale values are going up...not down. The new housing market continues to be high.
If so many can't afford to buy these homes...they wouldn't be escalating in value nor selling. It would all be decreasing.
"Whenever the nation is under attack, from within or without, liberals side with the enemy. This is their essence." --Ann Coulter
And why the American Voters chose to RE-elect President Bush to four more years. YES!!!
posted on August 9, 2005 04:16:01 PM newAnd as I've proven over and over again....
Right. Congress authorized 22.75 Billion dollars for Title I in 2006. Title I is the most critical component of NCLB. Bush has requested only 13 Billion of that total.
There was no increase in funding for Pell grants in 04-05, only increased restrictions placed on who could qualify for them. It's now very difficult for anyone whose parents make 35K a year to qualify.
____________________________________________
Fue por lana y salió trasquilado...
posted on August 9, 2005 04:22:33 PM new
NCLB profe? Because there is a certain amount set aside for a program....does't mean it all has to be spent upfront. Year to year it's decided how much is needed. And I have posted links showing how many states haven't used what they were given....so they certainly don't need more.
And I also have posted a link previously from factcheck that showed this lie the dems keep harping on about cuts in education funding have been anything but truthful.
"Whenever the nation is under attack, from within or without, liberals side with the enemy. This is their essence." --Ann Coulter
And why the American Voters chose to RE-elect President Bush to four more years. YES!!!
posted on August 10, 2005 04:40:44 PM new
Gee- I feel terrible! I only make about $20,000 a year, including eBay. I work a full-time job that I've been at for 7 years. But it does have good benefits and it's only 10 minutes from home. Fortunately, my house and car are paid for.
posted on August 12, 2005 07:30:20 PM new
manufactured homes are more affordable,they dont cost as much as a house.
-sig file -------
Eat grass,kick ass,never go belly up!
but I can blame whomever I want to.
