Top Earners Struggle With Housing Costs

Top Earners Struggle With Housing Costs

Computer technology, engineering, and legal jobs are among the highest-paying in the nation. You’d think workers in these sectors wouldn’t have trouble affording a home—but that’s not always the case, according to a new LendingTree analysis. The company ranked the nation’s 50 largest metros based on how affordable homes are to each area’s highest-paid workforce.

Workers in the most lucrative industries who live in one of the 50 cities LendingTree analyzed can expect to earn $900 a month more than the base income they would need to afford a median-priced home in their area, the analysis finds. Architects and engineers are the highest-paid professionals in 19 of the nation’s 50 largest metros. Those professionals make an average of $1,000 more a month than the base income they would need to afford a home in their area.

But even with a high-paying job, some workers still struggle. For example, in San Francisco and San Jose, Calif., a median-priced home costs an average of $269 more a month than what a worker earning a median salary in those cities’ highest-paid industries could afford.

Take a closer look at the study’s findings of metros where housing is the least affordable to those who work in the cities’ highest-paid industries:

1. San Jose

• Highest-paid industries: Computer technology and math
• Median earnings in highest-paid industries: $123,052
• Median home value: $815,000
• Likely monthly payment for a median-priced home: $3,207
• Affordable monthly payment for a median income earner: $2,871
• Monthly payment deficit: $336

2. San Francisco

• Highest-paid industry: Legal
• Median earnings in highest-paid industry: $112,168
• Median home value: $716,500
• Likely monthly payment for a median-priced home: $2,820
• Affordable monthly payment for a median income earner: $2,617
• Monthly payment deficit: $203

3. San Diego

• Highest-paid industries: Architecture and engineering
• Median earnings in highest-paid industries: $86,596
• Median home value: $484,900
• Likely monthly payment for a median-priced home: $1,908
• Affordable monthly payment for a median income earner: $2,021
• Monthly payment surplus: $112

4. Los Angeles

• Highest-paid industry: Legal
• Median earnings in highest-paid industry: $97,707
• Median home value: $537,000
• Likely monthly payment for a median-priced home: $2,113
• Affordable monthly payment for a median income earner: $2,280
• Monthly payment surplus: $166

5. Boston

• Highest-paid industries: Computer technology and math
• Median earnings in highest-paid industries: $91,015
• Median home value: $393,500
• Likely monthly payment for a median-priced home: $1,549
• Affordable monthly payment for a median income earner: $2,124
• Monthly payment surplus: $575

On the other hand, median income earners in the highest-paid industries in Houston, Detroit, and Washington, D.C., tend to have the easiest time affording a median-priced home. Those workers tend to earn $1,300 more a month than what they would need to afford a median-priced home.

Metros ranked by home affordability for those working in that metro’s highest paid industry 

Rank	Metro	Industry	Median Earnings-yearly	Median home value-2017	Monthly payment amount	Affordable monthly payment	Home Payment Monthly Surplus/Deficit
1	Houston	Architecture and engineering occupations	$92,747	$166,500	$655	$2,164	$1,509
2	Detroit	Architecture and engineering occupations	$87,657	$149,900	$590	$2,045	$1,455
3	Washington, D.C.	Legal occupations	$124,118	$397,900	$1,566	$2,896	$1,330
4	Hartford, Conn.	Legal occupations	$95,746	$244,300	$961	$2,234	$1,273
5	Chicago	Legal occupations	$91,119	$222,600	$876	$2,126	$1,250
6	Dallas	Architecture and engineering occupations	$82,897	$174,500	$687	$1,934	$1,248
7	St. Louis	Architecture and engineering occupations	$79,246	$162,600	$640	$1,849	$1,209
8	New Orleans	Architecture and engineering occupations	$82,243	$184,100	$725	$1,919	$1,194
9	Buffalo, N.Y.	Law enforcement workers including supervisors	$73,254	$135,000	$531	$1,709	$1,178
10	Pittsburgh	Legal occupations	$73,485	$142,100	$559	$1,715	$1,155
11	Birmingham, Ala.	Legal occupations	$74,954	$152,200	$599	$1,749	$1,150
12	Oklahoma City	Architecture and engineering occupations	$73,776	$146,800	$578	$1,721	$1,144
13	Atlanta	Legal occupations	$79,997	$184,200	$725	$1,867	$1,142
14	Charlotte, N.C.	Computer and mathematical occupations	$78,499	$177,000	$697	$1,832	$1,135
15	Cincinnati	Architecture and engineering occupations	$75,298	$158,800	$625	$1,757	$1,132
16	Indianapolis	Architecture and engineering occupations	$73,250	$148,500	$584	$1,709	$1,125
17	Cleveland	Architecture and engineering occupations	$72,157	$142,400	$560	$1,684	$1,123
18	Raleigh, N.C.	Computer and mathematical occupations	$84,654	$224,800	$885	$1,975	$1,091
19	Kansas City, Mo.	Architecture and engineering occupations	$73,979	$166,800	$656	$1,726	$1,070
20	Memphis, Tenn.	Computer and mathematical occupations	$69,140	$138,200	$544	$1,613	$1,069
21	Columbus, Ohio	Legal occupations	$73,874	$166,600	$656	$1,724	$1,068
22	Phoenix	Architecture and engineering occupations	$81,759	$216,600	$852	$1,908	$1,055
23	Louisville, Ky.	Architecture and engineering occupations	$71,266	$155,700	$613	$1,663	$1,050
24	Austin, Texas	Architecture and engineering occupations	$84,525	$240,500	$946	$1,972	$1,026
25	Las Vegas	Law enforcement workers including supervisors	$79,124	$212,300	$836	$1,846	$1,011
26	Baltimore	Computer and mathematical occupations	$91,218	$285,700	$1,124	$2,128	$1,004
27	San Antonio	Health diagnosing and treating practitioners and other technical occupations	$68,040	$152,400	$600	$1,588	$988
28	Minneapolis	Legal occupations	$80,265	$230,700	$908	$1,873	$965
29	Richmond, Va.	Architecture and engineering occupations	$78,142	$220,400	$867	$1,823	$956
30	Philadelphia	Computer and mathematical occupations	$81,365	$240,700	$947	$1,899	$951
31	Nashville, Tenn.	Legal occupations	$73,857	$197,000	$775	$1,723	$948
32	Jacksonville, Fla.	Architecture and engineering occupations	$69,365	$174,000	$685	$1,619	$934
33	Tampa, Fla.	Computer and mathematical occupations	$67,404	$162,600	$640	$1,573	$933
34	Sacramento, Calif.	Health diagnosing and treating practitioners and other technical occupations	$97,077	$339,500	$1,336	$2,265	$929
35	Orlando, Fla.	Architecture and engineering occupations	$70,184	$180,100	$709	$1,638	$929
36	Seattle	Computer and mathematical occupations	$101,107	$365,400	$1,438	$2,359	$921
37	Milwaukee	Management occupations	$72,400	$197,800	$778	$1,689	$911
38	Riverside, Calif.	Law enforcement workers including supervisors	$87,410	$293,800	$1,156	$2,040	$883
39	New York	Legal occupations	$102,615	$413,200	$1,626	$2,394	$768
40	Virginia Beach, Va.	Architecture and engineering occupations	$72,801	$236,600	$931	$1,699	$768
41	Providence, R.I.	Architecture and engineering occupations	$76,003	$257,300	$1,013	$1,773	$761
42	Portland, Ore.	Legal occupations	$83,118	$312,500	$1,230	$1,939	$710
43	Salt Lake City	Legal occupations	$72,268	$255,100	$1,004	$1,686	$682
44	Miami	Law enforcement workers including supervisors	$68,838	$236,500	$931	$1,606	$675
45	Denver	Computer and mathematical occupations	$81,747	$317,100	$1,248	$1,907	$659
46	Boston	Computer and mathematical occupations	$91,015	$393,500	$1,549	$2,124	$575
47	Los Angeles	Legal occupations	$97,707	$537,000	$2,113	$2,280	$166
48	San Diego	Architecture and engineering occupations	$86,596	$484,900	$1,908	$2,021	$112
49	San Francisco	Legal occupations	$112,168	$716,500	$2,820	$2,617	-$203
50	San Jose, Calif.	Computer and mathematical occupations	$123,052	$815,000	$3,207	$2,871	-$336

Source:

“Even If They Work in a High-Paying Field, Housing Is Still Unaffordable for Some Americans,” LendingTree (Sept. 16, 2019)