Teachers can now afford 47.9 percent of rental apartments within commuting distance of their schools, an increase from 40.7 percent the previous year, Redfin reported on Wednesday.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
A modest increase in teacher salaries and stable asking rents have enhanced rental affordability for educators, but it remains below pre-pandemic levels, according to a new report.
Teachers can now afford 47.9 percent of rental apartments within commuting distance of their schools, an increase from 40.7 percent the previous year, Redfin reported on Wednesday.
A Redfin analysis of July rental listings across 33 U.S. metropolitans and median teacher salaries for K-12 public and private schools from 2023 reveals that, despite the progress, the market is still experiencing the aftereffects of the pandemic.
In 2019, teachers could afford 58 percent of available apartments within commuting distance of their workplaces.
In 2023, the median U.S. teacher salary increased by 3.8 percent year-over-year to $64,266, surpassing rental price growth, which has stabilized after a pandemic-induced surge. Asking rents fell in 2023 and have only risen 0.4 percent compared to the previous year.
This rent stability is due to the high rate of new apartment construction, which has kept rent growth in line. However, with apartment construction now slowing, rents may start to increase in the near future.
Many teachers continue to struggle with rental costs as the median asking rent is just $50 below its peak, and increases have not kept pace with inflation. According to the National Education Association (NEA), teachers are earning an average of 5 percent less when adjusted for inflation compared to a decade ago, contributing to a high turnover rate.
“The small improvement in housing affordability for teachers who rent is only a drop in the bucket,” Redfin Senior Economist Sheharyar Bokhari said.
“Homeownership remains out of reach for a lot of educators, who, unlike many workers today, don’t have the flexibility to work remotely from somewhere more affordable. Building affordable housing near schools should be a priority for U.S. policymakers, but that’s only half the battle, as teacher salaries have faced years of underinvestment.”
In Portland, Oregon, the average teacher can afford 91.3 percent of rental apartments near the workplace, the highest among 33 metros. Portland’s high teacher salaries and declining rents contribute to this affordability. In contrast, Miami teachers can afford only 0.2 percent of nearby apartments, the lowest among the metros Redfin analyzed.
Teacher pay has declined in four metros, with Miami experiencing the most significant decline, an 11.9 percent decrease year-over-year to $53,297 last year. Florida metros rank the lowest in teacher pay among the top 50 cities surveyed, according to the NEA, and teacher employment fell 10.7 percent last year.
Homeownership remains a challenge for teachers as well.
Teachers could afford only 14.3 percent of homes for sale within commuting distance, a slight decrease from 14.4 percent the previous year, and significantly down from 39.1 percent in 2019. Rising home prices and elevated mortgage rates contribute to this strain.
According to Redfin, median monthly mortgage payments increased 4.7 percent in July year-over-year compared to the sub-1 percent increase in asking rents. Mortgage payments were 90.7 percent above pre-pandemic levels, while asking rents were 21.4 percent above pre-pandemic levels.
Among the 50 largest metros, Cleveland offers the most affordable homebuying options for teachers, with 61.1 percent of homes within reach. In contrast, California cities like San Jose are the least affordable, with teachers able to buy just 0.1 percent of homes due to high prices, despite having the highest teacher salaries in the survey.
Recent trends show Hartford, Connecticut, and Kansas City, Missouri, experiencing the most significant declines in homebuying affordability, while San Antonio and Atlanta saw notable improvements.
Teachers in Hartford can afford 22.1 percent of homes, down 34 percent from 2023, an 11.9 percentage point drop, while Kansas City dropped 7.9 percentage points.
San Antonio teachers can afford 20.6 percent of homes, up 6.4 percentage points from the previous year, followed by Atlanta, up 4.6 percentage points.
Email Richelle Hammiel