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Housing Crisis Hits Key Workers Hardest

by Broderick Perkins

The housing crisis is far from over and often hit hardest are hard working employees who are vital to thriving communities.

Most of the nation's elementary school teachers, police officers, licensed practical nurses, retail salespeople or janitors don't qualify to purchase the median priced home, based on the median income, according to the National Housing Conference's (NHC) "Paycheck to Paycheck: Wages and the Cost of Housing in America."

The Washington, D.C.-based, non-profit NHC develops resources and policies to increase the availability of affordable housing.

Conducted by NHC's research affiliate, Center for Housing Policy, "Paycheck to Paycheck" found that nationwide the median annual salaries for each of these five occupations fell short of the nearly $50,000 necessary to qualify for the median priced home of $156,000.

The earnings of licensed practical nurses, retail sales persons and janitors lag by substantial margins and families dependent solely on the salary of a janitor or retail salesperson pay in excess of what is considered affordable for a two-bedroom apartment in all of the 60 individual metropolitan areas studied.

The most expensive markets for all community workers to buy or rent a home were in the San Francisco Bay Area cites of San Francisco, Oakland and San Jose.

In San Jose, for example, a janitor would need 216 percent of his or her monthly income to make a monthly mortgage payment for a median priced home. An elementary school teacher would need 106 percent of his or her monthly income in San Francisco and a retail salesperson would need 158 percent of his or her monthly income in Oakland.

The study also found:

Families dependent on a police officer's salary are priced out of almost half, or 28, of the 60 areas studied.

Households dependent on one teacher's salary cannot afford to buy a home in 32 localities.

Licensed practical nurses cannot afford to buy a home in all but three of the 60 areas.

Janitors and retail salespersons require more than double their salaries in many of the metropolitan areas, up to three times their salaries in expensive areas, and up to seven times their salaries in the most expensive areas.

"While there is a growing understanding of the housing challenges we face as a nation, this new data prompts us to take an even closer look at the affordability concerns for working families, as well as the related social and financial implications for our communities," said NHC Executive Director Conrad Egan.

"We need to continue to develop policies at both the local and national level that recognize the challenges faced by police officers, firefighters, licensed practical nurses and others who provide vital services, yet they are unable to find affordable housing," Egan said.

Affordable housing is critical to the economic and social well-being of a community -- access to a suitable labor pool is one of the top three considerations in business location decisions.

Other studies have shown the benefits of home ownership include reduced crime, higher education and a better overall quality of life.

Published: August 14, 2003

Use of this article without permission is a violation of federal copyright laws.

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Broderick Perkins parlayed a career in old-school journalism into a contemporary digital news service that really hits home.

The award-winning consumer journalist, originally from Wilmington, DE, is founder, publisher and executive editor of the bootstrap DeadlineNews Group, a Silicon Valley-based editorial content and consulting service specializing in residential real estate, consumer news and related editorial consulting services.

The DeadlineNews Group includes the Web site, DeadlineNews.Com, offering real estate editorial content and consulting services, and its back shop, the Deadline Newsroom, an open house on news that really hits home.

Perkins obtained his formal journalism education from University of Delaware and a journalism boot camp, the Institute of Journalism Education at the University of California-Berkeley. He went on to 20 years of service as a daily newspaper journalist at the Wilmington, DE News Journal and San Jose, CA Mercury News.

Perkins covered housing on the San Jose Mercury News reporting team which earned a General News Reporting Pulitzer Prize in 1989 for coverage of the Loma Prieta earthquake.

He has also produced real estate, consumer and small business content for the Wall Street Journal, Los Angeles Times, RealtyTimes.com, Nolo.com, Better Homes and Gardens, the National Association of Realtors, Homestore/Move and Intuit/Quicken among more than three dozen publications.

In addition to managing the DeadlineNews Group, Perkins most recently served as chief editorial consultant for "Nolo's Essential Guide To Buying Your First Home" (Nolo $24.99) and writes real estate television scripts for RealtyTimes.com.

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