Miami a Microcosm for Growing Housing Unaffordability for Teachers

Teachers living in metro Miami can afford just 9 percent of its homes, Teachers' wages dropped 5.9 percent, and list prices increased 12.8 percent in that time, per Trulia and Bureau of Labor Statistics data. While the data on Miami is stark, it is not the only metro where teachers can afford less than they could one year ago. Trulia found that out...
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Teachers living in metro Miami can afford just 9 percent of its homes, Teachers' wages dropped 5.9 percent, and list prices increased 12.8 percent in that time, per Trulia and Bureau of Labor Statistics data.

While the data on Miami is stark, it is not the only metro where teachers can afford less than they could one year ago. Trulia found that out of 93 markets across the country, homebuying affordability increased for teachers in just eight. The Miami Herald reports that the recent educators' strikes have helped in the push for better pay, "Arizona teachers returned to class after winning a 20 percent salary bump over three years, plus extra public education funding in the state's budget."

Trulia said the median income for Miami teachers is now $49,013, while the median home price in the Miami metro area is $450,000. Trulia defined affordability as having a debt-to-income ratio of 31 percent or less, which means one’s monthly payment on housing would take up no more than 31 percent of one’s paycheck. They assumed that borrowers can put down a 20 percent down payment for a 30-year fixed rate mortgage at a 4.44 percent interest rate.

Source: www.probuilder.com