This week, Trulia, released a report examining income of people in various professions in almost 100 major U.S. metropolitan areas to see if they are struggling to afford to buy a home in their community. Trulia is an online residential real estate site with listings and housing data. They examined income data for doctors, teachers, first responders, and restaurant workers for the study. According to their report, Charlotte is among the least-affordable markets in North Carolina for teachers.
The report shows that the average American worker makes $37,040 per year. The median home in the United States costs $254,900. This means the average worker would have to spend 42% of their income on a mortgage if they bought that median home. This is up 6% from two years ago.
Trulia defined affordability as a debt-to-income ratio of 31%. This means monthly housing payments would take up only 31% of monthly take-home pay. Percentages were figured assuming a 20% down payment and a 30-year fixed rate mortgage with an interest rate of 4.1%.
Teachers in the Charlotte metro area earn on average $45,683 per year. Trulia’s report shows that only 33% of teachers could afford the median priced home in Charlotte of $299,900. 29% of first responders can afford that same home with an average salary of $41,630. Restaurant workers in the region have an average salary of $20,322 which means only 7% of them can afford the median priced home. Doctors in the area average $208,000 per year and 96% of them can afford the same home.
Two-income households have an advantage in affordability, but if one partner loses a job or takes a leave for family or other reasons, they could be in a real financial bind.
The Charlotte area has been feeling an affordability pinch recently. With a shortage of homes on the market, prices have been going up steadily. In fact, a recent report from Re/Max shows that the median sales price of a home in Charlotte was up 10.1% just between February and March of this year.
There are still some great neighborhoods in Charlotte that fall below the median sales price which are great for single income households. There are also many neighborhoods that fall close to the median price that are great options for dual income households. With prices continuing to appreciate, it is also a great option to purchase a starter home and work your way up to a more expensive home after a few years. The city is also working on getting many more affordable housing units included as part of most new developments.
No matter where you are in your home buying journey, New Angle Realty can help you. Call us at (704) 525-4045 or visit our website to view listings here.