Booming city economies push middle class out

[Yo_Mama_Been_Loggin]

An explosion of job growth in the hearts of America’s largest cities has driven the recovery from the worst economic recession in modern history, sending wages soaring and unemployment rates plummeting.

But along with a growing number of high-wage, high-skill jobs, home prices are rising in urban cores at a much faster clip than in suburbs or rural areas. It’s an indication that the decades-long trend of upper-income residents moving out of urban areas is reversing itself.

Increasingly, metropolitan leaders say that higher housing prices are threatening their middle class, forcing residents to choose between exorbitant housing costs or long commutes from the suburbs.

“We’ve had such great business opportunity and growth, but with it has come great challenges,” Seattle Mayor Jenny Durkan said in an interview. “We’re really a city where people can’t afford to live anymore. A lot of people of color have been displaced and pushed out of the city, the middle class can’t afford to live in Seattle.”

“We are challenged with workforce housing. These are people who are working hard every day, these are families where people are going to work 40 hours a week and yet don’t make enough to afford housing without being overburdened,” Denver Mayor Michael Hancock said. “The middle class is being squeezed out.”

The median single-family home in the United States sold for $235,500 in 2016, according to data compiled by the National Association of Realtors, up 59 percent since 2000 — and up 36 percent since 2011, when housing prices bottomed out after the recession. In cities like San Francisco and San Jose, Calif., the median cost of a home is now more than $1 million.

http://thehill.com/homenews/state-watch/370968-booming-city-economies-push-middle-class-out

For what it's worth $235,500 won't buy you a single family home in the central Puget Sound region. You might find a condo for that price but when one factors in HOA fees even that isn't affordable housing.

[ProudLib72]

1. Median home price where I live (Denver metro) is $394,000

I wish, wish, wish it was a mere $235,500.

[Jake Stern]

5. Looking to Texas and New Mexico to live.

For what I pay a month now for a tiny 2br duplex with a yard that a chihuahua would feel cramped in would cover almost 3 months rent in a 2br house in a town outside Albuquerque which has the added benefit of being situated on the commuter rail line. As for Texas, Ector County ISD (Odessa) offers affordable housing to staff.

Denver Public Schools is losing staff because of the eye popping cost of living. My school just lost an amazing SPED Para to Oklahoma City because she was priced out of the area.

[ellie]

7. Denver is so expensive

that we are looking to move on. We will never be able to afford to buy a house here.

[ProudLib72]

11. Most of CO is the same

We lived in Durango for two years (2014-2016), and the prices were just about as high. I keep waiting for the bubble to burst as a few previous threads have suggested, but I've also been told by realtors in the area that we are not in a bubble. All I know is that, in the last eight years, home prices in the Denver metro area have gone up 50%. It was nice when we could actually afford to buy because we were assured of at least coming out even when it was time to sell. Now, though, we are priced out of the housing market.

I remember when we moved back from Durango and were looking at houses (before we decided to rent instead). Our realtor told us that, in order for an offer to be considered, we would need to add $5 - $10K on top of the asking price. That blew me away. It had not been like that when we had sold our house in Aurora to move to the western slope.

[AJT]

2. I live in the Madison WI area and housing prices have

gone crazy over the past couple of years. Rent has also gone up more than wages.

[Blue_true]

3. Unfortunate and historical reality.

Wherever there is strong economies, things cost more. Mass transit like trains moderate the problem for a while, but just spread the higher prices to adjoining areas.

[pnwmom]

4. Right. And in Seattle proper it's that much worse.

The median price of homes sold last year was about 650K.

[Yo_Mama_Been_Loggin]

6. I looked at what Zillow had for Seattle a few days ago

I was amazed at the number of million dollar homes listed. They were nice and somewhat roomy homes. Just not what one would normally expect for that price.

[pnwmom]

8. I helped my son look for a 1 bd. apt there last year -- that was eye-opening. n/t

[MarvinGardens]

9. It's gone up a lot in Atlanta.

We bought our house 3.5 years ago. At today's prices we would not be able to buy a house in our neighborhood. And we are in the suburbs, neither close in nor far out. Closer in, it's crazy expensive.

[MissB]

10. The house we paid $56k for in Portland

Would easily top $900k today. 50x100’ lot.

(Bought in 1989, sold in 2003 for $365k)

[appalachiablue]

12. Happening all over, besides Seattle: DC, NY, ATL, Chicago,

Portland, San Fran, London et al.