Taken From Yahoo News 10 Places Where Home Prices Are Outpacing Wages by By Christine DiGangi of credit.com

With a concerned heart, I post this because my husband and I actually enjoy living in the Washington D.C. area. We both are thankful for our jobs and are doing the best we can to get by rent-wise with the income that we already have. Living with any of my family members in the Midwest is out of the question because you need a car to even remotely have a chance to get a decent job by where they live and even the minimum wage jobs are tricky to come by there. My mother-in-law lives in a much better area in Pennsylvania job wise. However, we both know that it would not be fair to her because she has helped us both out alot as it is already (so much to last beyond a lifetime), plus she is already looking after her mother (my husband's grandmother).  I can honestly say that at least in the D.C. area public transportation is accessible and affordable for people across all socio-economic classes. However, jobs that pay at least two thousand a month after taxes are extremely competitive to get even in the Washington D.C. area. Hence, why my husband and I are keeping our options open in terms of where we live long-term.  I wish that I knew of a workable solution that would at least facilitate accessible and affordable public transportation (such as in the D.C. area )for all socio-economic income classes in every state at least within the mainland U.S. and allow extremely low-cost housing with utilities included(500 dollars or less in today's money) regardless of how many children you have (please understand that I'm child-free but am open-minded on whether a person chooses to have five or more children or those who opt out of having children at all). This way the cost of both apartments and houses would be a moot point whether a person has a minimum wage job paying between 800 to 1500 dollars a month after taxes or a higher paying job that pays at least two thousand or more after taxes.

http://finance.yahoo.com/news/10-places-where-home-prices-103050775.html

10 Places Where Home Prices Are Outpacing Wages

 

By Christine DiGangiMarch 26, 2015 6:30 AM

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Home values significantly outpaced wage growth in the majority of markets analyzed in a new report from RealtyTrac, highlighting the difficulty many Americans face in trying to buy a home as the housing market recovers.

The report looks at average wage growth data gathered by the Bureau of Labor Statistics and median home sales price growth between the second quarter of 2012 and the second quarter of 2014 in 184 metropolitan statistical areas. Nationwide, median wages have increased 1.3% in two years, while median home sales priceshave increased 17%.

A note on the use of median figures and average figures: Wage data available from the Bureau of Labor Statistics looked at average weekly wages by metropolitan area, but median wages were available on a national level, RealtyTrac told Credit.com.

"Despite the difference in calculating those numbers, looking at a 2-year trend as we did should provide a fair comparison of the two metrics' trend over time," said Daren Blomquist, vice president of RealtyTrac.

In the metro areas analyzed, average wage growth was 3.7% and median home price appreciation was 13.4%. Here's where there are the largest discrepancies between wage growth and home price.

10. Washington, D.C. metro area
Two-year average wage growth: 1.5%
Two-year median sales price growth: 10.6%

9. Dallas metro area
Two-year average wage growth: 5%
Two-year median sales price growth: 20.1%

8. Chicago metro area
Two-year average wage growth: 3.1%
Two-year median sales price growth: 20.5%

7. Boston metro area
Two-year average wage growth: 4.6%
Two-year median sales price growth: 25.1%

6. Los Angeles metro area
Two-year average wage growth: 2.5%
Two-year median sales price growth: 28.4%

5. Miami metro area
Two-year average wage growth: 4.4%
Two-year median sales price growth: 32.3%

4. Houston metro area
Two-year average wage growth: 5.7%
Two-year median sales price growth: 36.9%

3. Atlanta metro area
Two-year average wage growth: 3.5%
Two-year median sales price growth: 38.1%

2. San Francisco metro area
Two-year average wage growth: 7.1%
Two-year median sales price growth: 38.6%

1. Detroit metro area
Two-year average wage growth: 4.9%
Two-year median sales price growth: 57.1%

RealtyTrac determined that most markets are still affordable, despite the greater increase in home prices than in wages. Of the metro areas analyzed, 73% had a median home price that would require a monthly mortgage payment, including property taxes and insurance, that would be 28% or less than the median income in that area.

Even if you live in an area where home prices are significantly outpacing wage growth, determining your personal affordability situation is crucial to deciding whether or not you can buy a home. You can use this home affordability calculator to help figure that out, but you also need to have an idea of whether or not you can qualify for an affordable mortgage, as well. Closely watch your credit if you're considering buying a home, because consumers with excellent credit get access to the lowest mortgage rates. You can see a free credit report summary updated every month on Credit.com.