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Housing Could Become a Crucial Issue for Teachers in 2023

May 21, 2023

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There is no question that inflation and other current economic issues are now impacting most Americans, and teachers are no exception. In fact, the current financial difficulties teachers face may be contributing to the teacher shortages in the US. Additionally, rising housing costs in specific urban areas might discourage individuals from pursuing a career in education. As the affordability of rent or down payments becomes increasingly challenging, people may opt to avoid entering the teaching profession.

According to recent data from the National Council on Teacher Quality, the cost of renting a one-bedroom apartment exceeds 30% of a beginning teacher’s salary in 15 out of the 69 metropolitan areas examined. Moreover, in 53 of the 69 districts, the growing rental expenses surpass the recent salary increases. Surprisingly, even with cost-of-living adjustments exceeding the rise in rental costs in districts like Virginia’s Fairfax County Public Schools and California’s San Francisco Unified School District, many teachers still struggle to afford rent.

More Than Meets the Eye

Data suggests that there could be more to this than initially thought, especially because the housing problem is not limited to beginning teachers. Even educators with years of experience may face financial difficulties when trying to enter the housing market. Saving for a down payment on a home close to their workplace can be a daunting task for many teachers. While the average US household typically takes around four years to save for a 20% down payment on a home, it can take as long as 13.6 years for a teacher to buy a median-priced house in the country’s largest metropolitan areas.

Although the numbers vary by location, the analysis reveals that housing prices have outpaced average salary increases for teachers across all districts over the past five years, except for Denver Public Schools. Educators in Cincinnati Public Schools (OH), Cleveland Metropolitan School District (OH), Indianapolis Public Schools (IN), and Pittsburgh Public Schools (PA) enjoy significantly more affordable conditions. In these districts, the expenses associated with owning a home amount to less than 25% even for a household managed by a single teacher with a bachelor’s degree and 10 years of experience. However, housing remains a crucial issue for teachers nationwide.

Understanding the Problem

A survey conducted by the National Education Association found that 45% of educators have relied on student loans to finance their education, with the average loan reaching $55,800. Notably, educators employed in higher education were more prone to accumulating higher levels of debt compared to their colleagues in pre-K–12 education. These loans can put an enormous strain on most teachers’ financial situations, and they could also add more pressure to the already imperative housing problem. Moreover, student loans can disproportionately affect certain subgroups within the profession. This, in turn, can create gaps among American teachers.

The study revealed that Black educators are more likely to take out student loans compared to White, Latin(o/a/x), Hispanic, and Chican(o/a/x) teachers. Over half (56%) of Black educators have acquired student loans, while only 44% of White educators have done so. Additionally, Black teachers have accumulated significantly higher debt compared to other ethnic groups. Among those who took out loans, the average initial total for Black educators amounted to $68,300, surpassing the figures of $54,300 for White educators and $56,400 for Latin(o/a/x), Hispanic, and Chican(o/a/x) teachers. 

The First Step to Fixing the Problem

US teachers face numerous financial concerns, including housing, but the good news is that some school districts are implementing measures to alleviate these challenges. At the beginning of 2023, Holland Public Schools now offers up to $25,000 in down payment assistance to those who purchase a home within its boundaries. Moreover, a new Senate proposal in Michigan plans to launch a $250 million program aimed at recruiting teachers. The program will reimburse student loan payments as an alternative incentive to encourage teachers to remain in their profession, according to Sen. Darrin Camilleri.