Skyrocketing Home Values Out-earn Salaries

  • 2021 home value growth exceeded median salaries in 25 of 38 major metros.
  • Appreciation on the typical home ranged from the equivalent of an oral surgeon’s income in San Jose to that of a food preparation worker in Philadelphia.
  • Annual rent payments grew by more than $3,000, while down payments increased by more than $10,000.

The term “household income” was given new meaning in 2021 as a banner year for home appreciation found houses themselves earning more than the median worker in major metros across the country. 2021 was a year of haves and have-nots, and the chasm between the two widening throughout. Those who owned a home saw their household wealth increase dramatically. But many renters witnessed that dream either soar out of reach or had to drastically adjust their expectations and plans.
Home value appreciation in 2021 was higher than median wages in 25 of 38 major metropolitan areas, with appreciation reaching higher than $100,000 in 11 of them. Though San Jose has the highest median salary at $93,000, it also led all major metros in annual home value appreciation — with the typical home growing a whopping $229,277 over 2021, nearly what oral surgeons make.
Expensive coastal markets in California and Hawaii saw home value growth wallop incomes by the largest amounts. San Jose led but San Francisco closely followed, with homes earning $129,914 more than the median salary. Boise, Salt Lake City, Seattle and Phoenix rounded out the top 10.
Metropolitan areas with the lowest home price appreciation relative to median salaries were Detroit, St. Louis and Baltimore, though even the smallest home value growth among these metros, in St. Louis, was still higher than $27,000.
While homeowners watched their assets multiply in 2021, the chasm separating many renters from homeownership widened, as home prices skyrocketed and rising rents eroded their ability to save for a down payment.
Rents rose 16% across the U.S. in 2021 and upward of 25% in popular Sun Belt locales like Miami, Phoenix and Las Vegas. Locking in a one-year lease on a typical U.S. rental cost $3,072 more at the end of the year than the start of the year. It was $7,104 more in Miami, $4,644 more in Phoenix and $4,380 more in Las Vegas — major hits to a household budget, as that money can’t be saved toward a down payment.
At the same time, down payments — often the highest hurdle to homeownership for first-time buyers — rose by more than $10,000 in 2021 for a typical 30-year fixed mortgage. Sticking with our metros used in the rent comparison, typical down payments rose nearly $14,500 in Miami, more than $20,600 in Phoenix and $16,700 in Las Vegas.

Metro Area* Home Value Growth December 2020 – December 2021 Median Pretax Income, 2021** Home Value Growth Minus Median Income 2021 Rise in Full-Year Rent Payments U.S. Profession That Made an Income Closest to 2021 Home Value Growth***
United States $52,667 $50,000 $2,667 $3,072 Directors, religious activities and education
New York– Newark— Jersey City $63,928 $60,000 $3,928 $4,656 Judicial law clerks
Los Angeles– Long Beach– Anaheim $131,979 $50,000 $81,979 $3,924 Judges, magistrates
Chicago– Naperville– Elgin $34,918 $57,000 -$22,082 $2,028 Other protective service workers
Dallas–Fort Worth– Arlington $69,488 $50,000 $19,488 $3,156 Human resource specialists
Houston– The Woodlands– Sugar Land $45,250 $50,000 -$4,750 $2,004 Dental laboratory technicians
Washington, D.C.– Arlington-Alexandria $56,163 $75,000 -$18,837 $2,700 Loading machine operators, underground mining
Miami– Fort Lauderdale– West Palm Beach $72,053 $40,000 $32,053 $7,104 Public relations specialists
Philadelphia– Camden– Wilmington $39,994 $60,000 -$20,006 $2,160 Supervisors of food preparation and serving workers
Atlanta– Sandy Springs– Roswell $73,036 $50,000 $23,036 $4,008 Soil and plant scientists
Phoenix– Mesa– Scottsdale $103,470 $52,000 $51,470 $4,644 Education administrators, K–2
Boston– Cambridge– Newton $76,616 $66,852 $9,764 $3,948 Arbitrators, mediators
San Francisco–-Oakland-Hayward, CA $204,914 $75,000 $129,914 $3,540 General internal medicine physicians
Riverside–-San Bernardino–-Ontario, CA $111,014 $45,000 $66,014 $4,560 Air transportation workers
Detroit-Warren-Dearborn, MI $29,675 $57,000 -$27,325 $1,644 Gambling cage workers
Seattle-Tacoma-Bellevue, WA $131,129 $65,000 $66,129 $3,816 Computer and information research scientists
Minneapolis–-St. Paul–-Bloomington, MN-WI $39,942 $60,000 -$20,058 $1,020 Gambling surveillance officers
San Diego–-Carlsbad, CA $160,493 $54,703 $105,790 $4,932 Computer and information systems managers
Tampa–-St. Petersburg–-Clearwater, FL $74,754 $46,000 $28,754 $5,292 Criminal justice teachers, postsecondary
Denver-Aurora-Lakewood, CO $108,922 $65,000 $43,922 $2,928 Electrical engineers
St. Louis, MO-IL $27,741 $50,000 -$22,259 $1,428 Cooks and food preparation workers
Baltimore-Columbia-Towson, MD $36,984 $60,000 -$23,016 $2,316 Medical assistants
Charlotte-Concord-Gastonia, NC-SC $71,804 $57,000 $14,804 $3,384 Commercial divers
Orlando-Kissimmee-Sanford, FL $64,638 $44,384 $20,254 $4,380 Set and exhibit designers
San Antonio–-New Braunfels, TX $54,769 $46,966 $7,803 $2,292 Counselors
Portland-Hillsboro-Vancouver-Hillsboro, OR-WA $83,283 $60,000 $23,283 $2,520 Speech-language pathologists
Las Vegas–-Henderson-Paradise, NV $83,894 $46,000 $37,894 $4,380 Nuclear technicians
Kansas City, MO-KS $40,846 $50,000 -$9,154 $1,368 Mixing and blending machine setters, operators
San Jose–-Sunnyvale–-Santa Clara, CA $229,277 $93,000 $136,277 $3,108 Oral and maxillofacial surgeons
Nashville-Davidson-–-Murfreesboro–Franklin, TN $84,395 $50,000 $34,395 $3,372 Emergency management directors
Providence-Warwick, RI-MA $66,657 $55,000 $11,657 $2,364 Court reporters and simultaneous captioners
Oklahoma City, OK $26,866 $44,044 -$17,178 $1,584 Food preparation workers
New Orleans–-Metairie, LA $31,945 $47,000 -$15,055 $2,628 Textile machine setters, operators, and tenders
Salt Lake City, UT $119,539 $53,638 $65,901 $3,156 Computer network architects
Birmingham-Hoover, AL $31,968 $50,000 -$18,032 $1,476 Helpers – production workers
Urban Honolulu, HI $138,254 $51,000 $87,254 $2,820 Operations specialties managers
Omaha–-Council Bluffs, NE-IA $31,114 $50,000 -$18,886 $1,236 Funeral attendants
Albuquerque, NM $47,215 $45,000 $2,215 $2,736 Educational instruction and Library workers, all others
Boise City, ID $124,979 $50,000 $74,979 $3,240 Health specialties teachers, postsecondary

 
*Table ordered by size rank
** Median inflation-adjusted pre-tax wage and salary income data from the Current Population Survey Annual Social and Economic Supplement
*** Occupation income data from May 2020 National Occupational Employment and Wage Estimates
United States