Three of the nation’s fastest growing cities, Charlotte NC, Salt Lake City and Columbus Ohio, (certainly not coastal cities) have become too expensive for more potential owners/renters than they already have. Charlotte is short some 34,000 affordable housing units as its booming job market has attracted 100,000 new households since 2000. Salt Lake City is currently short some 54,000 units at a time when it has been a leader in home building. Its housing costs are higher than both Phoenix and Las Vegas. And the Columbus housing market, now cooling slightly, has simply exhausted its too-many buyers with ever-higher home prices.
According to a report by the St. Louis Federal Reserve Bank, the median price of a single-family home outgrew increases in median household incomes by 390% between 1986 – 2017. The Center for American Progress has reported that the creeping cost of housing is pinching a middle class already struggling with flat wages, rising child-care costs and skyrocketing price tags for 4-year higher education.
Berkadia, a Berkshire Hathaway company, has reported that the lower-middle income bracket ($35,000-$49,999) has been hit hard with 6%-8% rent growth in the last seven years. Cities like Tulsa and Omaha are showing that more than 40% of their respective families are identifying as rent-burdened.