‘Hero’ Households Better Positioned Than Many to Achieve Homeownership
Many so-called “Hero households” are better positioned than many to achieve homeownership, according to a new analysis of home affordability by Homes for Heroes, a national program that provides real estate and mortgage savings to firefighters, law enforcement, military personnel, healthcare professionals, and teachers.
According to the analysis, while the median-income household is priced out of all but one major metro, Hero households can afford the median-priced home in as many as 39 of the nation’s 50 largest metro areas.
Homes for Heroes said that the study compared Hero household incomes with the income needed to afford the median-priced home in each metro area, accounting for home prices, mortgage rates, property taxes, homeowners insurance and a 3% down payment.
While established Hero households remain well positioned to purchase homes in many markets, teachers and healthcare professionals earning median wages cannot afford the median-priced home on a single income in any major U.S. metro area. Fire and law enforcement professionals and military personnel can qualify as single-income buyers, but only in a handful of markets, including Buffalo, New York, Pittsburgh, and Detroit.
“Homeownership has become out of reach for too many individuals and families across the U.S.,” said Amit Kulkarni, Interim CEO of Homes for Heroes. “The encouraging news is that Hero households continue to be among the strongest positioned homebuyers because of their stable careers and incomes, with many major metro areas still offering an attainable path to homeownership. At the same time, our research underscores the need to expand housing affordability so teachers, health care professionals, first responders and military families can continue living in the communities they serve.”
Midwest, Great Lakes
The organization said that while Hero households can afford the median-priced home in many of the nation’s largest metro areas, its analysis found that the strongest opportunities are concentrated in the Midwest and Great Lakes region, where relatively lower home prices continue to align closely with household incomes.
Pittsburgh ranked as the most affordable metro for teachers, healthcare professionals, and fire and law enforcement households, while Buffalo, New York, ranked first for military and veteran households, Homes for Heroes noted.
Detroit, Cleveland, Indianapolis and St. Louis also consistently are among the most affordable markets across Hero occupations. That demonstrates that homeownership opportunities remain available despite affordability challenges in many parts of the country, Homes for Heroes said.
High-cost coastal markets show the most severe affordability challenges for Hero households.
Los Angeles ranked as the least affordable metro for teachers and healthcare professionals, while San Jose, California, was the least affordable market for fire and law enforcement and military and veteran households.
Younger Heroes Face Limits
In Los Angeles, the median home listing price reached $1.1 million in May, more than seven times the median income of teacher and healthcare households.
Homes for Heroes noted that San Francisco, San Diego and New York also consistently rank among the least affordable metros across Hero occupations.
The organization said that many established Hero households can afford the median-priced home in a majority of the 50 largest metros, but that entry-level Hero incomes fall short of the income needed to qualify for a median-priced home in many markets, underscoring how quickly affordability erodes for early-career workers even in traditionally stable professions.
According to Homes for Heroes, among households headed by a Hero professional under age 35, affordability is limited across the country.
Just five of the nation’s 50 largest metro areas are affordable for teachers and healthcare professionals in this age group: Buffalo, Cleveland, Detroit, Pittsburgh and St. Louis.
Young fire and law enforcement households can afford the median-priced home in eight metros, including Buffalo, Cleveland, Columbus, Ohio, Detroit, Indianapolis, Pittsburgh, St. Louis and Baltimore. Young military households can do so in just four: Buffalo, Cleveland, Detroit and Pittsburgh.
According to the study, Hero households often benefit from multiple earners and stable incomes, but single-income homeownership has become increasingly rare.
There are no major metro areas where a teacher or healthcare professionals earning the median wage can afford to buy the median-priced home on their own income. Only fire and law enforcement professionals and military personnel can do so, and only in a handful of markets including Buffalo, N.Y., Pittsburgh and Detroit.
Founded in 2002, Homes for Heroes is the nation’s largest hero savings program dedicated to providing significant savings and support to those people who serve our communities every day.
