15 Metros Where Construction Workers Can’t Afford Homes

Editor’s Be aware: This story initially appeared on Construction Coverage.

After slowing down in the beginning of the pandemic, the development trade has bounced again, spurred on by the housing market increase.

Construction employment reached 7.7 million in August, surpassing pre-COVID-19 ranges, and almost matching peak building employment in 2006. With the signing of President Joe Biden’s Infrastructure Investment and Jobs Act into legislation, the long-term outlook for the development trade is trying upbeat as properly.

Though inflation has moderated barely, it nonetheless is at elevated ranges, nevertheless. The common weekly wage for full-time building employees was $887 in April, after adjusting for inflation. This represents a 12% drop from October 2020 when actual wages peaked at $1,012, in response to Construction Coverage.

Elevated demand for properties attributable to record-low mortgage charges, distant work, and stimulus funds coupled with low stock have triggered residence costs to skyrocket. Rising residence costs in lots of cities imply that the employees who construct properties typically can’t afford to purchase them, assuming that employees spend not more than 30% of their earnings on housing.

To seek out the metropolitan areas the place building employees should work the longest hours to afford a house, researchers at Construction Coverage analyzed the most recent knowledge. Listed below are U.S. metropolitan areas the place building employees must work the longest hours to afford a house. A technique part on the finish has the sources for this knowledge.

15. Nashville-Davidson–Murfreesboro–Franklin, TN

• Weekly hours wanted to afford a median-priced residence: 70
• Median hourly wage: $22.01
• Median residence worth: $457,360
• Month-to-month mortgage cost for a median-priced residence: $1,993
• General homeownership charge: 65.6%

14. Phoenix-Mesa-Scottsdale, AZ

• Weekly hours wanted to afford a median-priced residence: 70
• Median hourly wage: $23.02
• Median residence worth: $478,985
• Month-to-month mortgage cost for a median-priced residence: $2,088
• General homeownership charge: 64.4%

13. Orlando-Kissimmee-Sanford, FL

• Weekly hours wanted to afford a median-priced residence: 71
• Median hourly wage: $18.82
• Median residence worth: $399,709
• Month-to-month mortgage cost for a median-priced residence: $1,742
• General homeownership charge: 61.9%

12. Riverside-San Bernardino-Ontario, CA

• Weekly hours wanted to afford a median-priced residence: 71
• Median hourly wage: $27.82
• Median residence worth: $585,817
• Month-to-month mortgage cost for a median-priced residence: $2,553
• General homeownership charge: 64.1%

11. Sacramento–Roseville–Arden-Arcade, CA

• Weekly hours wanted to afford a median-priced residence: 71
• Median hourly wage: $29.23
• Median residence worth: $615,712
• Month-to-month mortgage cost for a median-priced residence: $2,683
• General homeownership charge: 61.2%

10. Boston-Cambridge-Nashua, MA-NH

• Weekly hours wanted to afford a median-priced residence: 73
• Median hourly wage: $30.22
• Median residence worth: $661,141
• Month-to-month mortgage cost for a median-priced residence: $2,881
• General homeownership charge: 61.7%

9. Washington-Arlington-Alexandria, DC-VA-MD-WV

• Weekly hours wanted to afford a median-priced residence: 76
• Median hourly wage: $24.63
• Median residence worth: $555,266
• Month-to-month mortgage cost for a median-priced residence: $2,420
• General homeownership charge: 63.9%

8. Seattle-Tacoma-Bellevue, WA

• Weekly hours wanted to afford a median-priced residence: 79
• Median hourly wage: $33.18
• Median residence worth: $781,617
• Month-to-month mortgage cost for a median-priced residence: $3,407
• General homeownership charge: 60.2%

7. Salt Lake Metropolis, UT

• Weekly hours wanted to afford a median-priced residence: 87
• Median hourly wage: $23.29
• Median residence worth: $606,689
• Month-to-month mortgage cost for a median-priced residence: $2,644
• General homeownership charge: 68.2%

6. Austin-Spherical Rock, TX

• Weekly hours wanted to afford a median-priced residence: 88
• Median hourly wage: $22.20
• Median residence worth: $582,073
• Month-to-month mortgage cost for a median-priced residence: $2,537
• General homeownership charge: 58.6%

5. Denver-Aurora-Lakewood, CO

• Weekly hours wanted to afford a median-priced residence: 89
• Median hourly wage: $24.00
• Median residence worth: $638,061
• Month-to-month mortgage cost for a median-priced residence: $2,781
• General homeownership charge: 64.8%

4. San Diego-Carlsbad, CA

• Weekly hours wanted to afford a median-priced residence: 105
• Median hourly wage: $29.02
• Median residence worth: $907,871
• Month-to-month mortgage cost for a median-priced residence: $3,957
• General homeownership charge: 53.9%

3. Los Angeles-Lengthy Seashore-Anaheim, CA

• Weekly hours wanted to afford a median-priced residence: 108
• Median hourly wage: $29.08
• Median residence worth: $933,282
• Month-to-month mortgage cost for a median-priced residence: $4,068
• General homeownership charge: 48.7%

2. San Francisco-Oakland-Hayward, CA

• Weekly hours wanted to afford a median-priced residence: 139
• Median hourly wage: $35.14
• Median residence worth: $1,458,909
• Month-to-month mortgage cost for a median-priced residence: $6,358
• General homeownership charge: 55.0%

1. San Jose-Sunnyvale-Santa Clara, CA

• Weekly hours wanted to afford a median-priced residence: 152
• Median hourly wage: $35.70
• Median residence worth: $1,619,785
• Month-to-month mortgage cost for a median-priced residence: $7,060
• General homeownership charge: 56.6%

Methodology

To seek out the metropolitan areas the place building employees must work the longest hours to afford a house of their metropolis, researchers at Building Protection analyzed the most recent knowledge from the U.S. Bureau of Labor Statistics’ 2021 Occupational Employment and Wage Statistics knowledge, the U.S. Census Bureau’s 2020 American Community Survey, and Zillow’s most up-to-date Zillow Home Value Index (ZHVI), a measure of typical residence worth.

To enhance relevance, solely metropolitan areas with at the very least 100,000 folks had been included within the evaluation.