As home costs increase across the U.S., the average worker is having a hard time affording housing close to where they work. With school headed back into session, housing market data tracker Redfin analyzed major metros around the U.S. to find out how these prices impact teachers. Currently, the average teacher can only afford 14.3% of homes for sale within commuting distance of their school. This is a slight drop from 14.4% in 2023 and a significant decline from 39.1% in 2019. However, teachers can afford 47.9% of rental apartments in these areas, an improvement from 40.7% in 2023 due to modest salary increases and stable rent prices.
In some housing markets, teachers have an easier time purchasing a home. Cleveland has the highest affordability rate, with teachers able to afford 61.1% of homes, while San Jose has the lowest affordability rate. There, only 0.1% of homes are affordable to teachers.
The cost of both renting and buying are near record highs, but affordability is more strained in the for-sale market because prices are rising relatively quickly, mortgage rates remain elevated, and the shortage of available properties is more severe.
The median monthly mortgage payment jumped 4.7% year over year in July, compared with a sub-1% increase in asking rents. Mortgage payments were 90.7% above pre-pandemic (July 2019) levels, while asking rents were 21.4% above pre-pandemic levels.
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