FILE This Oct. 3, 2018 file photo shows a home offered for sale in the Atlanta suburb of Roswell, Ga. Home prices in 2018 climbed 4.5%, while incomes grew 3.2%, according to CoreLogic real estate figures and government wage data. This gap is widening at a slower pace compared to recent years as gains in average hourly earnings have risen. Meanwhile, a slowdown in homebuying since 2018 has limited price gains in real estate and improved affordability. (AP Photo/John Bazemore, File)

US home prices outpaced income growth in 2018

By The Associated Press June 7, 2019 at 10:46am

WASHINGTON (AP) — Home prices in 2018 climbed 4.5%, while incomes grew 3.2%, according to CoreLogic real estate figures and government wage data released Friday.

The gap suggests that affordability is worsening. Still, this gap appears to be narrowing relative in much of the country as gains in average hourly earnings have risen as the unemployment rate has fallen. Meanwhile, a slowdown in homebuying since 2018 has limited price gains in real estate and improved affordability.

Across the country, there are significant variations in this trend as some markets are seeing affordability worsen and others have seen it stabilize after rapid growth.

Home prices in the Boise, Idaho area jumped 16.3%, significantly higher than the 3.7% gain in incomes. The Florida retirement community known as The Villages saw a similar trend as incomes rose 3.1% while home values increased 7.7%.

Places such as New York, Seattle and San Francisco are already pricing out residents, forcing many to stay as renters or move to cheaper cities. But in the past year, rising incomes in these areas and slowing growth in home prices has improved affordability slightly. This doesn’t mean that middle-class workers can suddenly afford to buy in these communities, so much as the squeeze isn’t as great as it was at the start of 2018.

A few major metro areas have seen homes prices and incomes grow roughly in sync such that there have been minimal changes in affordability, including Atlanta, Louisville and Birmingham, Alabama.

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Submit a Correction →

We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:

WJ Wire

The Associated Press

SummaryMore Biographical InformationRecent PostsContact

The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands. Photo credit: @AP on Twitter

@AP

Facebook

The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.

Location

New York City