Homes ‘Earn’ Minimum Wage or More in Almost Half the Nation’s Largest Cities…
| April 16, 2018 | Posted by RealestateSectors.Com under News, Options, Discussions & Offers About Real Estate Sectors... |
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Home values in San Jose, Calif., San Francisco and Seattle have been appreciating more than 3.5 times faster per working hour than the cities’ minimum wage workers earn.
In San Jose, the typical homeowner is gaining $99.81 of equity in their home every hour they’re at the office. The city’s hourly minimum wage is $13.50.
The typical U.S. homeowner is gaining $7.09 of equity in their home every working hour, $0.16 less than federal minimum wage.
The rapid pace of home value appreciation over the past year may present homeowners in several large U.S. markets with an interesting dilemma: Why work a 9-5 slog, when you can sit back and collect substantial hourly home equity “earnings” instead?
The typical U.S. home appreciated 7.6 percent over the past year, from a median value of $195,400 in February 2017 to $210,200 at the end of February 2018. That $14,800 bump in value translates to a gain in home equity of $7.09 for every hour the typical U.S. homeowner was at the office last year (assuming a standard 40-hour work week), a shade less than the federal minimum wage of $7.25 per hour.
Overall, owners of the median-valued home in 24 of the nation’s 50 largest cities earned more in equity per hour over the past year than their local minimum wage. But homeowners in a handful of U.S. cities made out a lot better than that – in some cases much, much better.
The median U.S. household earned roughly $60,000 in 2017 ($58,978 to be exact), or a little more than $28 per hour. But in six U.S. cities – New York, San Diego, San Jose, San Francisco, Seattle and Oakland – owners of the median-valued local home gained more than that in home equity alone. And if earning a six-figure annual salary represents a certain amount of privilege, homeowners in San Francisco, San Jose and Seattle all made comfortably more than that simply by virtue of owning a local home… Read more… (on Zillow.com) >>>
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