A new report has been released by HireAHelper looking at the U.S. locations whose residents have to work the most hours to afford a home.
After crashing in the spring of 2020, the job market has made an astounding comeback. Unemployment is at a relatively low rate (3.5%), and there are currently 1.7 job openings per unemployed worker. This tight labor market is a boon to workers looking for new job opportunities: not only are there plenty of available jobs, but it means more bargaining power for workers and higher earnings potential.
At the same time, home prices have risen dramatically, eroding those increases in pay and making it difficult to afford a home in some locations.
Researchers ranked states 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.
The analysis found that residents of New York State need to work 67 hours a week to afford the $413,443 median home price. Here is a summary of the data for New York State:
- Weekly work hours needed to afford a median-priced home: 67
- Monthly mortgage payment for a median-priced home: $2,054
- Median home price: $413,443
- Median hourly wage: $23.46
- Median annual wage: $48,800
For reference, here are the statistics for the entire United States:
- Weekly work hours needed to afford a median-priced home: 62
- Monthly mortgage payment for a median-priced home: $1,775
- Median home price: $357,319
- Median hourly wage: $22.00
- Median annual wage: $45,760
For more information, a detailed methodology, and complete results, you can find the original report on HireAHelper’s website.