Skip to main content
  1. Home
  2. Smart Home
  3. News

Trulia measures home affordability in major U.S. cities for occupational groups

By

1164934 autosave v1 community housing
Image used with permission by copyright holder
If you’re a teacher, police officer, firefighter, or restaurant worker in the U.S., there is a good chance you can’t afford to buy a home in the town where you work in most big U.S. housing markets. Online residential real estate site Trulia released the results of a study of nearly 100 U.S. metropolitan areas that shows home affordability by profession in those markets.

Trulia used the 2016 Bureau of Labor Statistics Occupational Employment Statistics report released at the end of March. The company defined affordability as a home that would cost nor more than 31 percent of the buyer’s monthly wages including property taxes, homeowner association fees, and insurance plus mortgage principal and interest.

Recommended Videos

To refine the calculations, Trulia also assumed a 20 percent down payment on a 30-year fixed mortgage at a 4.1 percent interest rate. The calculations took into account the respective wages and home prices in various markets. That is, for example, restaurant workers in different parts of the country vary, so the average incomes for that category in that metropolitan area were used in calculating affordability based on the prices of homes in the same area.

Related

The results from Trulia’s study are not good news for restaurant workers or civil servants. Restaurant workers had the lowest wages of the occupations studied, averaging just over $20,000 a year. With that salary, they could afford fewer than 10 percent of the homes on the market in 56 of the 93 markets in the study.

Teachers had the worst chances of affording a home in coastal California metro areas. Seven of the 10 least affordable areas for teachers were in California — the other three were Honolulu, Denver, and Austin, Texas. Teachers would have better chances of home ownership in Akron, Dayton, and Toledo, Ohio; Detroit; El Paso, Texas, Syracuse, New York; and Little Rock, Arkansas. In those areas, teacher salaries were enough to buy at least 75 percent of the homes listed.

In California, first responders including police officers and firefighters would find it difficult to buy homes in San Francisco, San Diego, and Orange County. If their salaries stayed the same, they have better home buying chances in Raleigh, North California; Madison, Wisconsin; and Nashville, Tennessee, but unfortunately first responders in those areas are paid less, so they are still largely out the market.

Looking at median list prices, the price in the middle if you listed them from high to low, of the major metropolitan areas, Dayton, Ohio was the most affordable at $129,000 and San Francisco was the least affordable at $1,249,000.

If you’re interested in how much house you can afford, Trulia also released an affordability calculator this week. The company’s mortgage calculator that tells you the monthly payment including principal, interest, taxes, and insurance for a mortgage in a given area. The new affordability calculator, in contrast, emphasizes debt-to-income ratio and shows the maximum home selling price you can afford with different ratios.

Editors' Recommendations

Topics
Bruce Brown
Bruce Brown
Contributing Editor
Digital Trends Contributing Editor Bruce Brown is a member of the Smart Homes and Commerce teams. Bruce uses smart devices…
Theragun sale at Best Buy: Up to $60 off the massage gun
A woman using a Theragun Prime handheld percussive massage device on her upper back.

If you're always dealing with sore muscles, you may want to take advantage of Best Buy's discounts for Therabody's Theragun massage devices. The retailer has slashed the price of the Therabody Theragun Mini 2nd Gen to just $169, for savings of $30 on its original price of $199, and the Therabody Theragun Prime to only $240, for savings of $60 on its sticker price of $300. Either model will help ease body pains after going through a long commute or finishing your exercise routine, but if you want to get them for cheaper than usual, you'll have to decide which one to buy and complete the purchase as soon as possible as the offers may expire at any moment.
Therabody Theragun Mini 2nd Gen -- $169, was $199

Therabody Theragun Prime -- $240, was $300

Read more
Ring Pan-Tilt Indoor Cam vs. Ring Stick Up Cam Pro: Which is better for your home?
The Ring Pan-Tilt Indoor Cam next to a smartphone.

The Ring Pan-Tilt Indoor Cam is one of the latest products from Ring. It allows users to control the camera remotely, giving them a simple way to see all corners of their home. It's also much more affordable than the existing Ring Stick Up Cam Pro, which offers plenty of cool features, but can't pan or tilt.

That makes it difficult to determine which is best for your home. Should you opt for the premium Stick Up Cam Pro, or is the Pan-Tilt Indoor Cam a better option due to its cheaper price tag? Here's a look at the two security cameras to help you decide.
Pricing and monthly fees

Read more
Blink Mini 2 vs. Wyze Cam v4: Which is the better budget security camera?
The Wyze Cam v4 installed outside.

The Blink Mini 2 and Wyze Cam v4 are two of the most affordable security cameras available in 2024. Both offer a compact footprint and impressive filming resolutions, and both can be used indoors and outdoors. However, there are some major differences between these two budget-minded products -- and while frugal shoppers will find a lot to love about both, one of them is a better product for most homes.

Here's a look at the Blink Mini 2 and Wyze Cam v4 to help you decide which to purchase.
Pricing and monthly fees
The Blink Mini 2 costs $40 and is available in black or white. If you want to use the device outdoors, you'll need to pick up the Weather Resistant Adapter, which bumps the price to $50. You'll also want to spring for the Blink Basic Plan, which costs $3 per month, to access features like cloud history.

Read more