FOR IMMEDIATE RELEASE August 9, 2005	Contact: Michele Anapol (202) 466-2121 x226 manapol@nhc.org

U.S. HOUSING PRICES RISE 20 PERCENT NATIONWIDE, WHILE WAGES FOR KEY COMMUNITY WORKERS REMAIN RELATIVELY FLAT

Study Provides Homeownership and Rental Affordability Data for Nearly 200 Metropolitan Areas and More Than 60 Occupations, Most Cities Find Growing Disparity Between Housing Prices and Wages

Washington, DC – The median price of a home in the U.S. rose 20 percent in just a year and a half, while at the same time wages for key community workers remained weak, even stagnant, in comparison, according to a study released today by the Center for Housing Policy, the research affiliate of the National Housing Conference. The study Paycheck to Paycheck: Wages and the Cost of Housing in America found that from fourth quarter 2003 to first quarter 2005 the cost of a median priced home increased from $186,000 to $225,000, or 20 percent, while at the same time the annual income needed to qualify to purchase a home grew from $54,855 to $71,354. Yet, the wages for key community workers such as elementary school teachers, police officers, licensed practical nurses, retail salespersons and janitors in the majority of cities nationwide remained flat and, in some metropolitan areas, are still significantly below the amount needed to purchase a home.

In addition to providing data for the overall nation, Paycheck to Paycheck compares homeownership and rental affordability findings with median community wages for nearly 200 metropolitan areas and more than 60 occupations.

These latest detailed findings for the nation’s metropolitan areas are of particular significance since many experts often focus attention on the Northeast and West as the regions experiencing affordable housing concerns. However, based on the new data cities in Florida, and other areas nationwide, are seeing a growing disparity between housing costs and the often sluggish wages of key community workers.

For example, in West Palm Beach, FL, the median home price has risen from $185,000 in 2003 to $245,000 this year – nearly 32 percent. Meanwhile the amount needed to quality for a mortgage has subsequently increased from $57,600 to $77,697 annually, but the wages for key community workers there have remained dramatically lower over the same time period.

Specifically, although not strictly comparable because of changes in methodology, a licensed practical nurse in West Palm Beach, FL, earned a median salary of $35,790 in 2003, but not much more in 2005 at just $36,568. In addition, a retail salesperson there could expect to earn $20,060 annually in 2003 compared to $23,611 this year. These increasing disparities between home prices and wages also hold true in other Florida cities such as Orlando, Pensacola, Sarasota, Tallahassee and Tampa, as well as numerous cities nationwide.

On the rental side, when comparing 2003 and 2005 data, the metropolitan area findings reveal that based on median income retail salespersons and janitors must pay an excessive portion of their income in order to rent a one- or two-bedroom apartment in the majority of U.S. cities studied.

“Across the nation we are seeing a growing disparity between the skyrocketing home prices of recent years and the minimal increase, if not flattening, in wages for our nation’s community workers,” said Barbara Lipman, research director for the Center for Housing Policy. “Additionally, the disturbing trend of retail salespersons and janitors, and those in similar wage groups, paying in excess of what is considered affordable in order to rent a one- or two-bedroom apartment continues in metropolitan areas throughout the country.”

The new Paycheck to Paycheck study is provided in online, interactive format and allows users to select and then identify housing affordability for the wide-range of occupations outlined. To customize a detailed report for your area, please go to Paycheck to Paycheck.

**Please note that if you have difficulty viewing the database, it is best viewed with the most recent versions of available Internet browsers.

Related Data Details and Background:

Wage information is as of February 2005 and was provided by salary.com, a private provider of salary information, which maintains a database of salaries by geographic location.

A rental unit is considered affordable if rent does not exceed 30 percent of income.

Conventional mortgage underwriting guidelines require that not more than 28 percent of household income should be used to pay the mortgage, property taxes and insurance. A downpayment of 10 percent is assumed.

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