Teacher salaries have been in the spotlight recently following a six-day teacher strike in Phoenix. Only 0.5 percent of the 14,406 homes for sale in Phoenix are affordable to the average local teacher’s annual salary of $45,965, according to a new report released by Redfin.
Last week, Arizona lawmakers approved a 20 percent wage increase for teachers across the state. The share of homes affordable to Phoenix teachers will then double to 1.1 percent.
“A 20-percent wage increase is a small victory in the national fight for fair compensation for teachers,” says Nela Richardson, Redfin’s chief economist. “However, in today’s housing affordability crisis, teachers will still lack the opportunity to become homeowners and investors in the communities they serve. We still have a long way to go to close the homeownership gap, giving more teachers and other public servants the chance to achieve the American dream.”
The share of homes affordable to teachers across 28 metros has dropped from 19.7 percent in 2016 to 11.5 percent in 2018, according to Redfin’s report. Pittsburgh is the most affordable metro for teachers, with 39 percent of homes for sale being affordable on a teacher’s salary. On the other hand, Denver ranked last on the list of analyzed metros, with only 0.3 percent of the homes for-sale affordable on a teacher’s salary.
Source: “Even With a 20% Wage Increase, Less Than 1% of Homes in Phoenix Will Be Affordable to Teachers,” Redfin (May 9, 2018)
Source: “Even With a 20% Wage Increase, Less Than 1% of Homes in Phoenix Will Be Affordable to Teachers,” Redfin (May 9, 2018)
