National Housing Conference Report: Middle-Class Americans Priced Out
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Middle-class Americans now face a housing affordability crisis once reserved for low-income families, according to a new report from the National Housing Conference.
Across the nation, rising home prices and rents have left millions unable to buy or even rent a modest home, the National Housing Conference said in Priced Out: When a Good Job Isn’t Enough.
The report found that since 2019:
• Nearly one-third (32%) of 390 metropolitan areas now require double the salary once needed to afford a home.
• Close to half (45%) of U.S. metros require six-figure incomes to purchase a typically-priced home.
The squeeze is not limited to homebuyers, the report said. Over the same period:
• 47% of tracked occupations cannot afford a two-bedroom apartment, with 32 metros requiring a salary exceeding $75,000.
• Since 2019, 85 metros require a 50% increase in salary or higher to afford a one-bedroom apartment, and 59 metros require an increase of 50% or more salary to afford a two-bedroom apartment.
The report also found 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% down payment; by 2024, that number had plummeted to just 14%.
“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 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 the report comes from NHC’s Paycheck to Paycheck database, which compares annual wages and housing costs for nearly 300 occupations in 390 U.S. metros, showing where working families can or cannot afford typical housing.
Among the findings:
• In Asheville, N.C., 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.
• In Boise, Idaho, home prices increased by over 60% in just five years. A middle school saw teachers, librarians, and counselors priced out of two-bedroom rental units by 2023, with librarians still unable to afford rent in 2024.
• In Houston, despite high rates of homebuilding, only 28 of 286 occupations could afford to purchase a home with 10% down in 2024.
• And in Tampa, Fla., 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.”
