Tag Archives: gap

The Living Wage Gap

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Source: Statista

According to an analysis from the Massachusetts Institute of Technology, the minimum wage does not suffice to pay for a typical set of living expenses in any state of the United States. Hawaii, Georgia and Utah, where the living wage gap exceeded $10 per hour, fared the worst.

While Georgia and Utah only apply the federal minimum wage of $7.25 per hour, Hawaii has a substantially higher minimum wage of $12 – once more to be increased to $14 on Jan. 1, 2024. Yet, the extremely high living costs on the inland group have created the highest living wage gap in all of the country this year.

In general, states which stuck to the federal minimum created above average gaps. Out of the 21 states which had a living wage gap above $8 this year, all except Hawaii were on the federal minimum wage. As states on the federal rate generally don’t increase their minimum wage, employees’ earnings were not adjusted in 2022 and 2023 for high inflation rates, causing living wage gaps to open up even more. While before the cost-of-living crisis, only three states saw gaps of more than $8 per hour, this increased to 21 in 2023 exclusively due to federal minimum wage states. Virginia was the state exiting the highest bracket, reducing the living wage gap from more than $9 to just over $7 by introducing a state minimum wage that marked the first increase to the rate in 11 years. The change started in 2021 and Virginia’s minimum wage will reach $15 in 2026.

Some states on the East Coast that like Virginia include or are in the vicinity of major cities also had higher wage gaps but none exceeding $8. New York saw a gap of $7.26 per hour this year, while Florida had a gap of $6.72 and Maryland of $6.36 despite these states mandating higher minimum wages.

The smallest gaps could be found in Washington, Vermont and Maine, where cost of living remained below metropolitan rates and minimum wages of $13 and above kept at least some pace with inflation.

To calculate the living wage, typical housing, living, childcare and healthcare expenses were calculated for the respective areas.

Infographic: The Living Wage Gap | Statista

Gender Gap Widens: Growth Trend Reverses For Young Single Women Homeowners

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Women have returned to the workforce in near pre-pandemic numbers, but homeownership remains elusive for those who are single

  • The homeownership rate for young single women declined in 2022 for the first time in six years, after peaking in 2021.
  • The top three metros with the highest share of listings affordable for single women are Pittsburgh, St. Louis and Detroit.
  • Women face the largest gender-based housing affordability disparities in Cincinnati, Kansas City and Oklahoma City.

SEATTLE, March 24, 2023 (PRNewswire) Single men have long been more likely than single women to own a home, but that gap narrowed sharply in recent years, nearly closing in 2021. However, a new Zillow® analysis shows that it widened again last year, shining light on the homebuying challenges single women face, including lower salaries and a more volatile workforce experience.

In 2016, 19.4% of young single women owned a home, compared with 29.6% of young single men — a gap of 10.1 percentage points. The gap shrunk throughout the next five years as more and more women entered the workforce — leading to record-high numbers in 2020 — and women’s incomes began to rise. By 2021, that gap was a mere 1.8 percentage points.

But that progress was wiped out in 2022. The first year of the pandemic saw an outsize share of women leave their jobs to take on caregiving responsibilities, as child-care and eldercare options were in flux. Women also continue to earn significantly less than men on average, receiving approximately 82 cents to every dollar earned by men. As a result, young single women have fewer options when it comes to affordable home listings than young single men.

Labor force participation rate for workers age 16 to 64
Labor force participation rate for workers age 16 to 64
Young single women's homeownership takes a hit in 2022
Young single women’s homeownership takes a hit in 2022

“Single women had made great strides in narrowing the homeownership gap, but the pandemic reminded us that progress is not always linear,” said Skylar Olsen, chief economist at Zillow. “Despite women showing remarkable resilience in returning to the workforce, single women’s homeownership rate took a heavy hit in 2022. With rising and volatile mortgage rates furthering affordability challenges, the road to affordable homeownership remains an uphill battle, and it may take creative solutions or even doubling up in a home to achieve that dream.”

After growing to 28.6% by 2021, the homeownership rate for single women dropped to 24.5% last year, wiping out almost half the gains made since 2016, when single women’s homeownership was at an all-time low of 19.4%. At the same time, the homeownership rate for single men increased 2.7 percentage points in 2022 to 33.1%.

Single women looking to buy a home in Pittsburgh, St. Louis or Detroit — which are among the nation’s 50 largest metro areas — will find the highest share of affordable listings. Single women in Atlanta, Baltimore, Washington, D.C., and Raleigh are most able to compete with single men in the for-sale market; single women in those metros, on average, can afford at least 2% of all active listings and at least 90% of the listings single men can afford. On the other hand, Cincinnati, Kansas City, Oklahoma City, Minneapolis, Jacksonville and New Orleans see the largest gender-based disparity in housing affordability, with single women able to afford fewer than 70% of the homes that single men can afford.

As the market changes, Zillow has gathered tools for first-time buyers to make the leap into homeownership on one easy-to-navigate web page. Here are five quick tips for aspiring buyers: 

  • Affordability: Use Zillow mortgage calculators and affordability tools to understand what you can afford, including hidden costs of homeownership, such as property taxes, insurance and HOA fees.
  • Financing: Get pre-approved for a mortgage to gain a competitive edge, as most sellers prefer buyers who have been pre-approved rather than pre-qualified.
  • Hire the right agent: Hire an experienced agent who knows the local market and can help make strategic decisions, and use Agent Finder on Zillow to find the right one.
  • Shop smarter with tech: Use real estate technology like Zillow’s multi-location search filter, Homes to Compare, virtual 3D Home tours and interactive floor plans to shop more confidently and make faster decisions.
  • Contingencies: Include important contingencies in offers to potentially save money in the long run, such as an inspection contingency to identify costly repairs and financing or appraisal contingencies to protect earnest money.
MetropolitanAreaTotal Share
Listings Affordable
for Women		Median Salary
for Women		Median List
Price		Share of Listings That Single
Women Can Afford Compared
to Single Men
Pittsburgh, PA32.6 %$25,000$184,65280.20 %
St. Louis, MO31.5 %$22,984$172,83885.13 %
Detroit, MI30.3 %$22,000$187,17982.05 %
Buffalo, NY25.1 %$24,642$219,58087.32 %
Cleveland, OH24.4 %$22,000$185,70471.81 %
Memphis, TN21.0 %$25,000$274,24789.13 %
Baltimore, MD20.8 %$30,000$298,20991.89 %
Birmingham, AL16.5 %$21,000$272,06889.13 %
Milwaukee, WI14.3 %$24,000$262,12471.84 %
Philadelphia, PA13.8 %$28,000$286,52683.92 %
Cincinnati, OH12.7 %$21,000$271,93067.56 %
Kansas City, MO12.6 %$24,000$292,36458.40 %
Louisville, KY10.8 %$21,156$277,53978.45 %
Indianapolis, IN10.6 %$25,000$278,18375.76 %
Chicago, IL10.2 %$26,000$323,13470.94 %
Columbus, OH9.0 %$25,000$332,03978.87 %
United States8.9 %$22,000$394,62584.51 %
Atlanta, GA7.3 %$25,000$361,55395.83 %
Hartford, CT6.9 %$25,000$346,72989.19 %
Charlotte, NC6.0 %$19,600$362,83083.05 %
Oklahoma City, OK6.0 %$25,000$348,20867.25 %
Richmond, VA5.8 %$21,000$339,78388.46 %
Minneapolis, MN5.5 %$27,336$357,56462.10 %
Washington, DC4.8 %$36,187$568,404100 %
Virginia Beach, VA3.3 %$25,500$331,45778.22 %
Houston, TX3.0 %$26,000$355,17480.21 %
Jacksonville, FL2.9 %$26,243$376,32263.35 %
San Antonio, TX2.8 %$23,000$344,11292.44 %
Raleigh, NC2.7 %$30,000$432,565100 %
Portland, OR2.7 %$25,409$581,54386.25 %
New Orleans, LA2.3 %$25,000$317,09756.10 %
New York, NY2.1 %$33,700$669,53873.48 %
Dallas, TX1.8 %$27,000$413,04286.34 %
Tampa, FL1.7 %$25,000$404,93690 %
Miami, FL1.6 %$23,800$580,50984.26 %
Providence, RI1.5 %$25,000$532,96668.18 %
Riverside, CA1.4 %$21,000$554,86280.83 %
Orlando, FL1.1 %$24,000$430,50675.68 %
Denver, CO0.8 %$30,000$652,98472.73 %
Nashville, TN0.6 %$36,000$496,90183.33 %
Boston, MA0.6 %$24,800$861,67281.82 %
Phoenix, AZ0.4 %$28,000$489,73480.30 %
Salt Lake City, UT0.3 %$38,000$593,708100 %
Austin, TX0.3 %$26,805$536,62562.50 %
San Francisco, CA0.3 %$28,044$991,69953.33 %
Los Angeles, CA0.2 %$30,000$960,13494.44 %
San Diego, CA0.2 %$25,000$955,77675.00 %
Las Vegas, NV0.2 %$29,000$448,55062.50 %
Seattle, WA0.2 %$25,000$752,94754.55 %
Sacramento, CA0.1 %$26,000$639,262100 %

Sources and Methodology
Labor force participation rates for working age adults (ages 16–64 years) are produced by the Bureau of Labor Statistics and pulled from the FRED API. Annual homeownership rates of households headed by 25- to 35-year-olds (annually from 1980 to 2022) and broken out by employment, marital status and living arrangement were estimated by Zillow Economic Research using individual records from the Current Population Survey provided by IPUMS CPS, at the University of Minnesota, www.ipums.org. Information regarding gender pay equity was obtained from the Pew Research Center, www.pewresearch.org.

The number and share of active listings on Zillow that are affordable for single women and single men (limited here to employed singles between ages 18 and 44) were estimated using all listings ever active on Zillow during February 2023 and median individual incomes by gender, estimated by Zillow Research using individual responses to the American Community Survey, also provided by IPUMS at the University of Minnesota. A home is considered “affordable,” in this case, if the estimated mortgage payment on the listing takes up no more than 30% of income. We set the mortgage rate for this analysis at the average weekly mortgage rate, reported by Freddie Mac, for February.

About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life’s next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting, or financing with transparency and ease.

Zillow Group’s affiliates and brands include Zillow®; Premier Agent®; Zillow Home Loans℠; Zillow Closing Services℠; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+℠, which includes ShowingTime®, Bridge Interactive®, and dotloop® and Listing Media Services. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).

SOURCE Zillow Group, Inc.

Survey: Knowledge Gap Contributing To Housing Market And Affordability Concerns, Cautiousness

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National survey by Laurel Road reveals current housing and financial environment impacting purchasing decisions, despite institutional indicators

New York, NY – June 11, 2018 (PRNewswire) Ten years after the 2008 housing crisis, Americans eye the housing market with caution, as more than half (53%) of Americans who have or plan to buy a home admit they’re concerned about their ability to afford a home in the current market, according to a recent study of college-educated adults. The findings, release today by national online lender and FDIC-insured bank Laurel Road, also reveal that Americans on average believe a similar housing crash will occur in the next five years, and nearly one-fifth of respondents anticipate a crash in less than one year.

Laurel Road Logo

The survey examines how misconceptions and unclear options are inflating anxieties when it comes to housing market decisions. For example, the down payment is often considered one of the biggest barriers to affordability, but nearly half (46%) of Americans are currently unfamiliar with alternative down payment options. Similarly, the National Association of REALTORS® found that in 2017 that the median down payment for first-time buyers was 6% of total home price for three straight years, but nearly three in five respondents (58%) plan to put down a traditional 20% down payment, while 42% feel they would need to tap into other means, such as mortgage insurance (14%). The survey found that women in particular are potentially underestimating affordability, as they are significantly less likely than men (49% vs. 59%) to be familiar with the alternatives.

This lack of knowledge around alternative options potentially contributes to the fact that more than one-third (35%) of respondents – and 46% of millennials – do not feel confident that they could currently afford a 20% down payment. Women (45%) feel particularly less confident than men (24%), while more than two-fifths (42%) of student loan carriers do not feel confident.

A knowledge gap also surrounds current interest rates. The survey revealed that Americans think mortgage interest rates in the U.S. will reach 6%, on average, by the end of the year, while the Mortgage Bankers Association expects a more modest 4.6%. Interestingly, millennials (70%) are the most concerned about the impact of rising rates, compared to 60% of Gen Xers and 35% of boomers. Compared to boomers (78%), millennials (53%) are less likely to think it’s best that others pull the trigger and buy now, suggesting those that are more likely to be buying their first home are apprehensive about purchasing decisions.

In sum, these findings suggest consumers are concerned and cautious about housing decisions in the current market, despite the fact that interest rates are historically low. In fact, the majority of people (74%) who have bought, or plan to buy, a home would only accept an interest rate of less than 6% before they decided not to move forward with a purchase. However, a lack of historical context may contribute to this sentiment. Americans believe the highest U.S. mortgage rates have ever reached was 12.25%, on average. In reality, rates have exceeded 18% – a fact only 8% of Americans know.

“Purchasing a home is a life-changing decision, yet despite the range of resources, people often aren’t aware of the personalized options available to fit their specific situation,” said Alyssa Schaefer, Chief Marketing Officer of Laurel Road. “By arming future homebuyers with the knowledge and support needed to make an informed and confident decision, we are committed to empowering our customers during the homebuying process. Ultimately, through our research and evolving product set, our mission is to meet our consumers where they need us most, by providing an exceptional experience across each major financial milestone.”

Additional findings include:

  • Setting timelines: Americans estimate they will buy a home in the next six years, on average. First-time homebuyers plan to purchase a home in just two years – at age 36, on average. Concern may even play a role in buying patterns, as 62% of those who are concerned about affordability are currently looking or plan to buy in less than five years, compared to 33% of those who aren’t concerned.
  • Planning ahead: Among Americans who have ever bought, or plan to buy, a home, 85% have plans for their savings if they refinanced their mortgage.
    • 48% would put it into savings
    • 41% would pay off debt, such as credit cards or student loans (50% of millennials vs. 45% of Gen X and 32% of boomers)
    • 27% would remodel their home
  • Spurring action: Among current and prospective homeowners, nearly one in three (32%) are more likely to refinance their home, specifically because of the potential for a future rate hike.

About the Survey
The Laurel Road survey was conducted by Wakefield Research (www.wakefieldresearch.com) among 1,000 nationally representative U.S. college-educated adults, with 50% of respondents who have a graduate degree, between April 11 and April 18, 2018, using an email invitation and an online survey.

Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

About Laurel Road
Laurel Road is a national online lending company and FDIC-insured bank, offering online student loan refinancing, personal lending and mortgage products as well as consumer and commercial banking services. Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with graduate and undergraduate degrees to refinance and consolidate more than $3 billion in federal and private school loans, and with our low rates borrowers have reduced their monthly payments and on average saved tens of thousands of dollars. For more information on potential savings, see laurelroad.com/student, in addition to laurelroad.com/mortgage.

Laurel Road Bank is a Connecticut banking corporation offering lending products in all 50 U.S. states, Washington, D.C. and Puerto Rico. The mortgage product is not offered in Puerto Rico. Laurel Road Bank is an Equal Housing Lender, Member FDIC. NMLS ID # 402942.

© 2018 Laurel Road Bank. All rights reserved.
Laurel Road, 1001 Post Road, Darien, CT, 06820

Media Contact:

Kwittken PR for Laurel Road
(212) 352-4651
laurelroad@kwittken.com