Editor's Note: This story originally appeared on HireAHelper.
A very tight labor market has led to an increase in overall wages. Real median hourly wages have grown by 11.4% since 2000.
However, home prices have risen even faster; the real median home price has grown by nearly 44% over the same period. While workers’ wages are rising, home prices — and price levels overall — are eating away at these earnings gains.
As workers consider moving to take advantage of better-paying jobs, regional differences in home prices remain top of mind.
Despite having higher-paying jobs, high home prices mean that it is still difficult to afford a home in some parts of the country.
To determine the locations where people need to work the most hours to afford a home, researchers at HireAHelper analyzed the latest data from the Bureau of Labor Statistics and Zillow.
The researchers ranked metros according to the weekly work hours needed to afford a median-priced home. The analysis assumes the worker is earning a median wage, makes a 20% down payment on the mortgage, and allocates less than 30% of their monthly wage to mortgage payments.
Researchers also calculated the monthly mortgage payment for a median-priced home, the median home price, the median hourly wage, and the median annual wage.
Here are the U.S. metropolitan areas where people need to work the most hours to afford a home.
15. Las Vegas-Henderson-Paradise, NV
- Weekly hours needed to afford a median-priced home: 89
- Monthly mortgage payment for a median-priced home: $2,077
- Median home price: $418,187
- Median hourly wage: $18.05
- Median annual wage: $37,550
14. Nashville-Davidson-Murfreesboro-Franklin, TN
- Weekly hours needed to afford a median-priced home: 91
- Monthly mortgage payment for a median-priced home: $2,228
- Median home price: $448,498
- Median hourly wage: $18.88
- Median annual wage: $39,260
13. Austin-Round Rock, TX
- Weekly hours needed to afford a median-priced home: 91
- Monthly mortgage payment for a median-priced home: $2,669
- Median home price: $537,243
- Median hourly wage: $22.55
- Median annual wage: $49,910
12. Portland-Vancouver-Hillsboro, OR, WA
- Weekly hours needed to afford a median-priced home: 92
- Monthly mortgage payment for a median-priced home: $2,784
- Median home price: $560,474
- Median hourly wage: $23.26
- Median annual wage: $48,380
11. Sacramento-Roseville-Arden-Arcade, CA
- Weekly hours needed to afford a median-priced home: 96
- Monthly mortgage payment for a median-priced home: $2,917
- Median home price: $587,164
- Median hourly wage: $23.35
- Median annual wage: $48,570
10. Miami-Fort Lauderdale-West Palm Beach, FL
- Weekly hours needed to afford a median-priced home: 98
- Monthly mortgage payment for a median-priced home: $2,364
- Median home price: $475,854
- Median hourly wage: $18.59
- Median annual wage: $38,670
9. Salt Lake City, UT
- Weekly hours needed to afford a median-priced home: 98
- Monthly mortgage payment for a median-priced home: $2,867
- Median home price: $577,249
- Median hourly wage: $22.55
- Median annual wage: $46,900
8. Seattle-Tacoma-Bellevue, WA
- Weekly hours needed to afford a median-priced home: 99
- Monthly mortgage payment for a median-priced home: $3,718
- Median home price: $748,399
- Median hourly wage: $28.96
- Median annual wage: $60,230
7. Denver-Aurora-Lakewood, CO
- Weekly hours needed to afford a median-priced home: 100
- Monthly mortgage payment for a median-priced home: $3,072
- Median home price: $618,385
- Median hourly wage: $23.66
- Median annual wage: $49,210
6. Riverside-San Bernardino-Ontario, CA
- Weekly hours needed to afford a median-priced home: 117
- Monthly mortgage payment for a median-priced home: $2,855
- Median home price: $574,659
- Median hourly wage: $18.76
- Median annual wage: $39,020
5. San Diego-Carlsbad, CA
- Weekly hours needed to afford a median-priced home: 145
- Monthly mortgage payment for a median-priced home: $4,342
- Median home price: $874,095
- Median hourly wage: $23.10
- Median annual wage: $48,050
4. Los Angeles-Long Beach-Anaheim, CA
- Weekly hours needed to afford a median-priced home: 150
- Monthly mortgage payment for a median-priced home: $4,460
- Median home price: $897,894
- Median hourly wage: $22.87
- Median annual wage: $47,580
3. Urban Honolulu, HI
- Weekly hours needed to afford a median-priced home: 151
- Monthly mortgage payment for a median-priced home: $4,557
- Median home price: $917,354
- Median hourly wage: $23.17
- Median annual wage: $48,200
2. San Jose-Sunnyvale-Santa Clara, CA
- Weekly hours needed to afford a median-priced home: 162
- Monthly mortgage payment for a median-priced home: $7,636
- Median home price: $1,537,192
- Median hourly wage: $36.31
- Median annual wage: $75,510
1. San Francisco-Oakland-Hayward, CA
- Weekly hours needed to afford a median-priced home: 174
- Monthly mortgage payment for a median-priced home: $6,754
- Median home price: $1,359,655
- Median hourly wage: $29.81
- Median annual wage: $62,000
Methodology
To determine the locations where people need to work the most hours to afford a home, researchers at HireAHelper analyzed the latest data from the Bureau of Labor Statistics 2021 Occupational and Employment and Wage Statistics and Zillow’s Zillow Home Value Index (ZHVI), a measure of typical home value.
The researchers ranked metros according to the weekly work hours needed to afford a median-priced home. In the event of a tie, the metro with the larger median hourly wage was ranked higher.
Researchers also calculated the monthly mortgage payment for a median-priced home, the median home price, and the median annual wage.
Median home price was calculated from Zillow’s ZHVI, and the monthly mortgage payment for a median-priced home was calculated by assuming a 30-year fixed-rate mortgage with a 20% down payment.
Weekly work hours needed to afford a median-price home were calculated assuming that no more than 30% of wage income goes towards mortgage payments.
To improve relevance, only metropolitan areas with at least 100,000 people were included in the analysis.
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