{"id":66173,"date":"2019-06-03T16:06:47","date_gmt":"2019-06-03T23:06:47","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=65881"},"modified":"2020-10-06T12:58:36","modified_gmt":"2020-10-06T19:58:36","slug":"most-affordable-cities-for-construction-workers","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/most-affordable-cities-for-construction-workers\/","title":{"rendered":"St. Louis, Chicago and Cleveland Are the Most Affordable Areas for Construction Workers to Buy Homes"},"content":{"rendered":"<p><em><span style=\"font-weight: 400;\">But the people who build homes can\u2019t afford to buy them in the California metros that need new housing the most.<\/span><\/em><\/p>\n<p><a href=\"https:\/\/redfin.com\/city\/16661\/MO\/St-Louis\"><span style=\"font-weight: 400;\">St. Louis<\/span><\/a><span style=\"font-weight: 400;\"> is the most affordable place for a construction worker to buy a home, with 67.3 percent of homes for sale affordable on the median personal income for construction workers in the area, the highest share of any U.S. metro. It\u2019s followed by two Midwestern neighbors, <\/span><a href=\"https:\/\/redfin.com\/city\/4145\/OH\/Cleveland\"><span style=\"font-weight: 400;\">Cleveland<\/span><\/a><span style=\"font-weight: 400;\"> (64.7%) and <\/span><a href=\"https:\/\/redfin.com\/city\/29470\/IL\/Chicago\"><span style=\"font-weight: 400;\">Chicago<\/span><\/a><span style=\"font-weight: 400;\"> (62.5%). Those metros are also relatively affordable for the population as a whole: In all three places, more than half of homes for sale are affordable on the area\u2019s median household incomes. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the other end of the spectrum, a typical construction worker would find it near impossible to find a home they could afford to buy in any major California metro. In <\/span><a href=\"https:\/\/redfin.com\/city\/17420\/CA\/San-Jose\"><span style=\"font-weight: 400;\">San Jose<\/span><\/a><span style=\"font-weight: 400;\">, almost none of the homes for sale\u2014just 0.1 percent\u2014are affordable on a local construction worker\u2019s median income, making it the least affordable metro for construction workers, followed by <\/span><a href=\"https:\/\/redfin.com\/city\/16904\/CA\/San-Diego\"><span style=\"font-weight: 400;\">San Diego<\/span><\/a><span style=\"font-weight: 400;\"> (1.5%) and <\/span><a href=\"https:\/\/redfin.com\/city\/17151\/CA\/San-Francisco\"><span style=\"font-weight: 400;\">San Francisco<\/span><\/a><span style=\"font-weight: 400;\"> (1.8%). The fact that less than 20 percent of homes for sale in each California metro covered by this analysis (<\/span><a href=\"https:\/\/redfin.com\/city\/11203\/CA\/Los-Angeles\"><span style=\"font-weight: 400;\">Los Angeles<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/redfin.com\/city\/16409\/CA\/Sacramento\"><span style=\"font-weight: 400;\">Sacramento<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/redfin.com\/city\/15935\/CA\/Riverside\"><span style=\"font-weight: 400;\">Riverside<\/span><\/a><span style=\"font-weight: 400;\">, in addition to those already listed) are affordable for construction workers is representative of the larger housing crisis in the entire state.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Partly due to a lack of inventory, median sale prices in many parts of the state are sky high, clocking in at more than $1 million in San Jose and San Francisco. The catch-22 is that the people who build homes can\u2019t afford to live where housing supply is needed most.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For a more complete picture of housing affordability for construction workers throughout California and the U.S., the Redfin dashboard below ranks metro areas from most to least affordable for people in the occupation:<\/span><\/p>\n<div id=\"viz1559595043424\" class=\"tableauPlaceholder\" style=\"position: relative;\"><noscript><a href='#'><img alt=' ' src='https:&#47;&#47;public.tableau.com&#47;static&#47;images&#47;Co&#47;ConstructionWorkerAffordability&#47;ActiveListings&#47;1_rss.png' style='border: none' \/><\/a><\/noscript><object class=\"tableauViz\" style=\"display: none;\" width=\"300\" height=\"150\"><param name=\"host_url\" value=\"https%3A%2F%2Fpublic.tableau.com%2F\" \/><param name=\"embed_code_version\" value=\"3\" \/><param name=\"site_root\" value=\"\" \/><param name=\"name\" value=\"ConstructionWorkerAffordability\/ActiveListings\" \/><param name=\"tabs\" value=\"no\" \/><param name=\"toolbar\" value=\"yes\" \/><param name=\"static_image\" value=\"https:\/\/public.tableau.com\/static\/images\/Co\/ConstructionWorkerAffordability\/ActiveListings\/1.png\" \/><param name=\"animate_transition\" value=\"yes\" \/><param name=\"display_static_image\" value=\"yes\" \/><param name=\"display_spinner\" value=\"yes\" \/><param name=\"display_overlay\" value=\"yes\" \/><param name=\"display_count\" value=\"yes\" \/><param name=\"filter\" value=\"publish=yes\" \/><\/object><\/div>\n<p><script type='text\/javascript'>                    var divElement = document.getElementById('viz1559595043424');                    var vizElement = divElement.getElementsByTagName('object')[0];                    vizElement.style.width='1000px';vizElement.style.height='827px';                    var scriptElement = document.createElement('script');                    scriptElement.src = 'https:\/\/public.tableau.com\/javascripts\/api\/viz_v1.js';                    vizElement.parentNode.insertBefore(scriptElement, vizElement);                <\/script><\/p>\n<p><i><span style=\"font-weight: 400;\">The dashboard above is based on homes currently for sale in metro areas with more than 1,500 active listings, with the share of homes affordable to construction workers based on the median income for the profession in each area. <\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">New construction is a key ingredient in the affordability of housing markets. New homes contribute to overall housing supply, and sufficient supply helps prevent home prices from rising too high. But nationwide, growth in new listings of new homes has steadily declined for the last three years. And while the U.S. construction industry experienced strong employment growth in April, adding more jobs than any industry except business services, <\/span><a href=\"http:\/\/economistsoutlook.blogs.realtor.org\/2019\/05\/01\/construction-and-housing-starts-outlook-for-2019-2028\/\"><span style=\"font-weight: 400;\">residential construction employment is still below pre-recession levels<\/span><\/a><span style=\"font-weight: 400;\">. Demand for homebuilding services greatly outweighs supply, according to Robert Dietz, chief economist at the <\/span><a href=\"https:\/\/www.nahb.org\/\"><span style=\"font-weight: 400;\">National Association of Home Builders<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cOne of the challenges in the real estate market right now is that there\u2019s not enough inventory, and part of that is due to a lack of home construction in the last few years. A lot of factors limit the production of new homes, but labor is the top supply-side constraint,\u201d Dietz said. \u201cThe difficulty of finding and hiring construction workers, particularly in certain areas, is a significant reason why new homes aren\u2019t being built fast enough.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In California, the lack of new homes is particularly problematic: Between 2010 and 2018, California built the fewest apartments and for-sale housing units per new resident of any state except Arizona, with just one unit for every 3.1 newcomers (Arizona built one new unit for every 3.2 newcomers). Other states averaged around one new unit for every two new residents during the same time period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Take the Bay Area as an example of the housing affordability problems associated with a lack of supply. Although inventory has been recovering in San Jose and San Francisco in recent months, those markets are continuing to feel the effects of 15 consecutive months of double-digit supply declines from mid-2017 through mid-2018. The lack of inventory drove prices from a median of $820,000 in the beginning of 2017 to more than $1.1 million last month in San Jose, and $1 million to $1.5 million over the same time period in San Francisco. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, wages for construction workers in the San Jose and San Francisco metros have hardly risen compared to housing prices. In San Jose, annual salaries hovered around $60,000 throughout 2017 and 2018, about 12 percent higher than they were in 2012. Home prices in the area were more than 100 percent higher in 2018 than they were in 2012. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt might seem like the solution to the housing shortage is straightforward\u2014just build more homes\u2014but in many California metros construction workers aren\u2019t paid enough to cover their own housing costs, which makes attracting construction workers to build those homes quite difficult,\u201d said Redfin <\/span><a href=\"https:\/\/redfin.com\/blog\/author\/darylfairweather\/\"><span style=\"font-weight: 400;\">chief economist Daryl Fairweather<\/span><\/a><span style=\"font-weight: 400;\">. \u201cTo solve the housing crisis, the government needs to step up and subsidize new construction. Some voters might find it distasteful to give wealthy developers subsidies, but those subsidies could come with strings attached like higher pay for working-class construction workers.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Check out Redfin\u2019s <a href=\"https:\/\/redfin.com\/blog\/new-construction-home-sales-Q1-2019\">latest new construction report<\/a>, which includes statistics on national and metro-level sale prices, inventory and more.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\t\t\t\tWe took a look at the most affordable places for construction workers to buy a home, along with the least affordable. \t\t<\/p>\n","protected":false},"author":13153,"featured_media":65882,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[27,8],"tags":[32],"coauthors":[],"class_list":["post-66173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-affordability","category-housing-market-news","tag-housing-market-tracker"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Most and Least Affordable Housing Markets For Construction Workers<\/title>\n<meta name=\"description\" content=\"Midwest metros are among the most affordable housing markets for construction workers. 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