When housing prices increase faster than wages, where do workers live? Increasingly, Florida communities and businesses are expressing concern about a shortage of workforce housing: apartments and houses that are affordable for workers in low- and moderately paid jobs. Some characteristics of the workforce housing shortage:
Communities may have difficulty attracting public service workers, such as teachers, nurses, firefighters, and police officers, because there is little housing these employees can afford.
New businesses may be reluctant to come to a community with limited affordable housing, and existing business may find it difficult to expand and add employees.
Workers may face long commutes from outlying areas with more affordable housing to jobs located in cities with high housing costs.
People with low-paying jobs, such as cashiers and home health aides, may have trouble finding any housing they can afford.
The Workforce Housing tools on the Florida Housing Data Clearinghouse Web site can help you learn more about the need for workforce housing in Florida communities. These datasets contain information about wages in Florida counties and metropolitan areas in comparison to rents and home prices. Wage data for 47 occupations—that is, job titles such as cashier or accountant—can be found in the OES Wage/Housing Cost data set. Wage data for 48 industries, covering types of firms such as nursing homes or manufacturing, can be found in the ES-202/Housing Cost data set.
In the following example, we describe workforce housing needs in Broward County using data from the Workforce Housing tools. Text in italics describes the specific tools used to find the data; click the “How?” link to learn more about how to use the tools to arrive at the information.
According to the U.S. Department of Housing and Urban Development (HUD), fair market rent (FMR) for a two-bedroom apartment in the Fort Lauderdale metropolitan area is $798 per month. Rental housing is typically considered affordable if it costs no more than 30% of household income. By this standard, a worker would need to earn $31,920 per year to afford an apartment at this rent level. (Tool used: OES Wage/Housing Cost, 2-Bedroom FMR Wage Index How (1))
The $798 rent is out of reach for a number of workers earning the median wage for their occupations in the Fort Lauderdale area. For example, nursing aides, retail salespersons, preschool teachers, security guards, and hairdressers earning median wages would have to spend half of their income or more for rent to afford a $798/month apartment. However, nurses, police officers, and firefighters earning median wages for the area would be able to afford this rent level. Click here (2) for a table of selected occupations for which a $798 apartment is not affordable. (Tool used: OES Wage/Housing Cost, Percentage of Income Spent on Rent for a 2-Bedroom FMR How? (3) )
Looking at wages by industry instead of occupation, we find that average-paid workers in a number of essential types of businesses would not be able to afford a $798 apartment. These businesses include restaurants, child care centers, clothing stores, community care facilities for the elderly, traveler accommodations, nursing care facilities, and auto repair shops. Click here (4) for a table of selected industries whose average-paid workers in Broward County would pay more than 30% of income for a $798 apartment. (Tool used: ES-202 Housing Cost, Percentage of Income Spent on Rent for a 2-Bedroom FMR How? (5))
The median sales price for a single-family home in Broward County is $185,000. Homeownership is considered affordable if a household pays no more than 25% of its income for mortgage costs; this amount is lower than the rental percentage because homeowners must pay other costs such as insurance, property taxes, and utilities. A household would need a $53,526 annual income to afford a $185,000 home. (Tool used: OES Wage/Housing Cost, Median-Priced Single Family Home Wage Index How? (6))
This home is priced out of reach for a number of public service workers earning median wages in the Fort Lauderdale area: police and sheriff’s patrol officers, firefighters, licensed practical nurses, and social workers. Workers in a number of other occupations—accountants, electricians, carpenters, plumbers, secretaries—would also find a $185,000 house unaffordable. Those in lower-paying jobs, such as maids and cashiers, would need to devote nearly all of their income to housing costs in order to purchase a home. Click here (7) for a table of selected occupations for which a $185,000 house is not affordable (Tool used: OES Wage/Housing Cost, Percentage of Income Spent on Mortgage for Median-Priced Single Family Home How? (8))
The $185,000 home price is too high for average-paid workers in many industries in Broward County. In addition to those mentioned above under rental housing, these industries include trucking, transportation, education and health services, accounting, real estate agencies, manufacturing, and many others. Click here (9) for a table of selected industries whose average-paid workers would pay more than 25% of income for a mortgage on a $185,000 home. (Tool used: ES-202 Housing Cost, Percentage of Income Spent on Mortgage for Median-Priced Single Family Home How? (10))
To read more about workforce housing and the gap between wages and housing costs, see the Workforce Housing topic in our Library.
Info Briefs are provided by the Florida Housing Data Clearinghouse to introduce housing topics and help users to find relevant data on this site.
To find the HUD fair market rent (FMR) for a two-bedroom apartment in a particular metro area and the annual income that corresponds to payment of 30% of income for that rent level:
Go to the Workforce Housing introduction page under the Data Access Tools tab.
Choose the OES Wage/Housing Cost data set.
Click a link for a metropolitan statistical area (MSA).
Click the link for the “2-Bedroom FMR Wage Index” indicator.
The HUD FMR for a two-bedroom apartment and the corresponding annual income will appear at the top of the results page.
Occupations with Median Wages Below Level Necessary to Afford Rent for 2-Bedroom Apartment at FMR, Fort Lauderdale MSA
Occupation |
Percentage of Income Required for Rent for 2-BR at FMR |
|
Waiters and waitresses |
72.0 |
|
Bartenders |
71.0 |
|
Maids and housekeeping cleaners |
68.0 |
|
Dishwashers |
64.5 |
|
Laundry and dry-cleaning workers |
62.2 |
|
Cashiers |
62.0 |
|
Janitors and cleaners, except maids and housekeeping cleaners |
58.2 |
|
Landscaping and groundskeeping workers |
55.7 |
|
Hairdressers, hairstylists, and cosmetologists |
53.9 |
|
Security guards |
53.0 |
|
Preschool teachers, except special education |
52.6 |
|
Retail salespersons |
51.5 |
|
Nursing aides, orderlies, and attendants |
51.2 |
|
Pharmacy technicians |
48.1 |
|
Cooks, restaurant |
47.2 |
|
Taxi drivers and chauffeurs |
46.7 |
|
Receptionists and information clerks |
46.6 |
|
Construction laborers |
46.4 |
|
Truck drivers, light or delivery services |
45.7 |
|
Tellers |
45.5 |
|
Secretaries, except legal, medical, and executive |
39.6 |
|
Painters, construction and maintenance |
35.6 |
|
Fitness trainers and aerobics instructors |
35.3 |
|
Truck drivers, heavy and tractor-trailer |
34.5 |
|
Automotive service technicians and mechanics |
30.8 |
|
Plumbers, pipefitters, and steamfitters |
30.5 |
|
Police, fire, and ambulance dispatchers |
30.2 |
To find the occupations whose median-paid workers would pay more than 30% of income for rent for a two-bedroom apartment at FMR:
Go to the Workforce Housing introduction page under the Data Access Tools tab.
Choose the OES Wage/Housing Cost data set.
Click a link for a metropolitan statistical area (MSA).
Click the link for the “Percentage of Income Spent on Rent for a 2-Bedroom FMR” indicator.
On the results page, occupations will be listed with the percentage of income that entry-level, median-wage, and experienced workers would pay for a two-bedroom at FMR. In this example, we used the median-wage figure to show how much of income a typical worker in the occupation would spend for rent for an apartment at FMR. We described rent as “out of reach” or “too high” for an occupation if this percentage exceeded 30%.
To use Excel to create a table similar to the one contained in the link at the end of the paragraph, click the “Download Excel data” link on the left side of the results page. In this example, we downloaded the data and selected only those occupations for which the median wage yielded a percentage of income paid for rent above 30%. We then created a new table with those occupations and the corresponding percentages of income for median-wage workers only.
Industries with Mean Wages Below Level Necessary to Afford Rent for 2-Bedroom Apartment at FMR, Broward County
Industry |
Percentage of Income Required for Rent for 2-BR at FMR |
|
Limited-service eating places |
80.7 |
|
Drinking places, alcoholic beverages |
69.9 |
|
Full-service restaurants |
63.8 |
|
Child day care services |
59.1 |
|
Leisure and Hospitality |
57.1 |
|
Clothing stores |
56.2 |
|
Department stores |
53.1 |
|
Fishing |
51.2 |
|
Fruit and tree nut farming |
48.2 |
|
Community care facilities for the elderly |
48.0 |
|
Beer, wine, and liquor stores |
44.1 |
|
Religious organizations |
43.2 |
|
Gambling industries |
41.4 |
|
Taxi and limousine service |
41.0 |
|
Traveler accommodation |
40.8 |
|
Nursing care facilities |
39.6 |
|
Natural Resources and Mining |
37.8 |
|
Automotive repair and maintenance |
37.5 |
|
Social advocacy organizations |
33.4 |
|
Death care services |
33.2 |
|
Offices of other health practitioners |
31.4 |
To find the industries whose mean wages would require a worker to pay more than 30% of income for rent for a two-bedroom apartment at FMR:
Go to the Workforce Housing introduction page under the Data Access Tools tab.
Choose the ES-202/Housing Cost data set.
Click a link for a county.
Click the link for the “Percentage of Income Spent on Rent for a 2-Bedroom FMR” indicator.
On the results page, industries will be listed with the percentage of the income for a mean-wage worker that is equal to the two-bedroom FMR for that metropolitan area.
To use Excel to create a table similar to the one contained in the link at the end of the paragraph, click the “Download Excel data” link on the left side of the results page. In this example, we downloaded the data and selected only those industries for which the mean wage yielded a percentage of income paid for rent higher than 30%. We then created a new table with those industries and the corresponding percentages of income.
To find the median sales price for a single family home in a particular metro area and the annual income that corresponds to payment of 25% of income for mortgage costs:
Go to the Workforce Housing introduction page under the Data Access Tools tab.
Choose the OES Wage/Housing Cost data set.
Click a link for a metropolitan statistical area (MSA).
Click the link for the “Median-Priced Single Family Home Wage Index” indicator.
The median price for a single family home for each county in that MSA and the corresponding annual incomes will appear at the top of the results page.
Occupations with Median Wages Below Level Necessary to Afford Median-Priced Home, Broward County
Occupation |
Percentage of Income Required for Mortgage for Median-Priced Home |
|
Waiters and waitresses |
97.4 |
|
Bartenders |
94.5 |
|
Dishwashers |
94.2 |
|
Maids and housekeeping cleaners |
92.4 |
|
Cashiers |
90.3 |
|
Laundry and dry-cleaning workers |
84.8 |
|
Janitors and cleaners, except maids and housekeeping cleaners |
83.9 |
|
Hairdressers, hairstylists, and cosmetologists |
83.3 |
|
Security guards |
77.4 |
|
Retail salespersons |
75.5 |
|
Preschool teachers, except special education |
74.5 |
|
Nursing aides, orderlies, and attendants |
73.6 |
|
Landscaping and groundskeeping workers |
72.7 |
|
Pharmacy technicians |
72.3 |
|
Taxi drivers and chauffeurs |
71.6 |
|
Cooks, restaurant |
68.9 |
|
Construction laborers |
65.9 |
|
Receptionists and information clerks |
64.8 |
|
Tellers |
64.5 |
|
Truck drivers, light or delivery services |
64.2 |
|
Secretaries, except legal, medical, and executive |
56.5 |
|
Fitness trainers and aerobics instructors |
54.3 |
|
Painters, construction and maintenance |
51.1 |
|
Truck drivers, heavy and tractor-trailer |
49.7 |
|
Automotive service technicians and mechanics |
45.7 |
|
Police, fire, and ambulance dispatchers |
45.2 |
|
Child, family, and school social workers |
42.9 |
|
Licensed practical and licensed vocational nurses |
42.4 |
|
Automotive body and related repairers |
42.3 |
|
Carpenters |
42.2 |
|
Plumbers, pipefitters, and steamfitters |
41.2 |
|
Electricians |
40.3 |
|
Food service managers |
39.9 |
|
Executive secretaries and administrative assistants |
38.4 |
|
Lodging managers |
37.4 |
|
Insurance sales agents |
36.2 |
|
Accountants and auditors |
33.2 |
|
Fire fighters |
32.1 |
|
Police and sheriff's patrol officers |
27.3 |
|
Credit analysts |
26.8 |
To find the occupations whose median-paid workers would pay more than 25% of income for mortgage costs for a median-priced home:
Go to the Workforce Housing introduction page under the Data Access Tools tab.
Choose the OES Wage/Housing Cost data set.
Click a link for a metropolitan statistical area (MSA).
Click the link for the “Percentage of Income Spent on Mortgage for Median-Priced Single Family Home” indicator.
On the results page, occupations will be listed with the percentage of income that entry-level, median-wage, and experienced workers would pay for the mortgage costs for a median-priced single family home. In this example, we used the median-wage figure to show how much of income a typical worker in the occupation would spend for mortgage costs. Note: some MSAs include several counties. The list of occupations repeats for each county.
To use Excel to create a table similar to the one contained in the link at the end of the paragraph, click the “Download Excel data” link on the left side of the results page. In this example, we downloaded the data and selected only those occupations for which the median wage yielded a percentage of income paid for mortgage costs higher than 25%. We then created a new table with those occupations and the corresponding percentages of income for median-wage workers only.
Industries with Median Wages Below Level Necessary to Afford Median-Priced Home, Broward County
Industry |
Percentage of Income Required for Mortgage for Median-Priced Home |
|
Limited-service eating places |
116.5 |
|
Drinking places, alcoholic beverages |
102.3 |
|
Full-service restaurants |
93.5 |
|
Child day care services |
90.0 |
|
Clothing stores |
83.8 |
|
Leisure and Hospitality |
80.8 |
|
Department stores |
77.1 |
|
Fruit and tree nut farming |
72.9 |
|
Community care facilities for the elderly |
71.8 |
|
Religious organizations |
64.4 |
|
Gambling industries |
63.3 |
|
Taxi and limousine service |
60.9 |
|
Traveler accommodation |
59.0 |
|
Nursing care facilities |
58.4 |
|
Natural Resources and Mining |
55.4 |
|
Automotive repair and maintenance |
53.2 |
|
Fishing |
52.4 |
|
Beer, wine, and liquor stores |
48.5 |
|
Social advocacy organizations |
47.9 |
|
Offices of other health practitioners |
45.6 |
|
Death care services |
45.3 |
|
Trade, Transportation, and Utilities |
41.1 |
|
Educational support services |
41.0 |
|
General freight trucking |
40.7 |
|
Waste collection |
39.0 |
|
Education and Health Services |
37.2 |
|
Offices of dentists |
37.1 |
|
Professional and Business Services |
36.9 |
|
Accounting and bookkeeping services |
36.6 |
|
Construction |
35.6 |
|
Colleges and universities |
35.4 |
|
Manufacturing |
31.9 |
|
Offices of real estate agents and brokers |
31.6 |
|
Residential building construction |
31.2 |
|
Financial Activities |
30.6 |
|
Insurance agencies, brokerages, and related |
28.6 |
|
Automobile dealers |
26.4 |
To find the industries whose mean wages would require a worker to pay more than 25% of income for mortgage costs for a median-priced home:
Go to the Workforce Housing introduction page under the Data Access Tools tab.
Choose the ES-202/Housing Cost data set.
Click a link for a county.
Click the link for the “Percentage of Income Spent on Mortgage for a Median-Priced Single Family Home” indicator.
On the results page, industries will be listed with the percentage of the income for a mean-wage worker that is equal to the mortgage costs for a median-priced home for that county.
To use Excel to create a table similar to the one contained in the link at the end of the paragraph, click the “Download Excel data” link on the left side of the results page. In this example, we downloaded the data and selected only those industries for which the mean wage yielded a percentage of income paid for mortgage costs higher than 25%. We then created a new table with those industries and the corresponding percentages of income.
Last updated June 2006
