I Can't Afford My Job

Metro areas where affordability has worsened over the past five years have seen a decline in job growth (According the National Association of Realtor's (NAR) Home Affordability Index Ranking and Payroll Job Growth report).

Boise, Idaho, saw the largest drop in affordability (income versus home prices) compared to other U.S. cities (108th in 2014 to 153rd in 2019 Q3). That equates to an increase in the median home price from $173k in 2014 to $303k in 2019. The median home price in Boise is below the Wasatch Front. Salt Lake City's affordability ranking went from 151st in 2014 to 143rd in 2019, a 0.4% decrease. This means that incomes in Salt Lake City have been keeping up with home price increases, which is a bit surprising. Not surprising is that metro areas in Southern and Northern California continue to be some of the least affordable areas.

As long as home appreciation stays in-line with wage increases, job growth should continue to remain strong along the Wasatch Front. Appreciation is expected to slow some in 2020, which in regards to affordability, is a good thing.

-Jeff Jorgensen

Photo by Pedro Lastra on Unsplash