Teacher Shortages: How are Housing Prices and Salary Influencing Educators?

Teacher retention rates and the number of young people going into the education field are low in many parts of the United States. Florida K-12 schools, however, are especially struggling to keep teachers and hire new ones. Departing teachers sometimes leave because they are unsatisfied with the curriculum. Others may be retiring. However, many teachers leave the profession due to salaries that can’t keep pace with housing costs.  

Florida home prices have continually gone up over the years. Housing price indices show these trends. A housing price index measures the average change in sales or refinancings on the same properties. 

Certain school districts and counties in Florida are seeing greater housing price inflation, making purchasing a home difficult in their local area. These rising home prices make life a struggle for many teachers. Some teachers are staying in rental properties with roommates while others are taking on second jobs, just to be able to support themselves and their families. 

The Federal Reserve Bank of St. Louis’s housing price index for Florida increased from 486.50 in the first quarter of 2020 to 813.17 in the first quarter of 2024, an increase of 67.1%. Whereas the housing price index across the United States increased by just 47.8%, from 449.66 in the first quarter of 2020 to 664.67 in the first quarter of 2024. 

The financial instability caused by housing price inflation may be a factor driving teachers out of their chosen profession. In 2022, the median household income in Florida was $67,917. This is roughly $19,500 more than the median annual income for Florida teachers, who earned $48,432 in 2022. With housing prices higher now, teachers are searching for new ways to afford housing.

In January of 2020, the median home listing price for all houses in Florida was $329,995, according to the Federal Reserve Board of St. Louis. By January of 2024, the median home was listed at $459,945. This change is especially significant in comparison to educator salary, which has not increased at such a significant rate.

Teacher income has increased over the years but by smaller amounts in comparison to home prices. In 2020, the median teacher salary was $46,596, and this year in 2024 the median teacher salary is $51,951.50. This 11.5% increase in teacher salary is well below the 39.4% increase in home values. Educator salaries are not increasing at the same rate that home values are increasing, likely affecting their budgets.  

According to  the “50/30/20 budget rule,” people should spend 50% of their income on needs, 30% on wants, and 20% on savings. However, in school districts such as Monroe County in South Florida, teachers are spending close to 66% of their monthly income on housing alone, a “need.” When teachers spend greater amounts of their income on housing, they have to adjust their budget, which can influence their lifestyle in the short and long term.

Understanding the impact of housing prices on teachers is crucial for keeping professionals in the classroom. With a lack of support and constant instability in the classroom, kids will struggle and fall behind with teacher turnover. When teachers leave, schools have to hire someone new. Often less experienced or teachers who are not certified in a certain field are hired. When schools are understaffed with teachers, class sizes become larger and courses are cut. When turnover is high, student achievement is worse. 

Addressing the statewide and local housing shortage is an important component in the strategy to retain school teachers. By expanding the housing supply, housing prices will be kept in check, leading to more affordable housing options.

In 2023, Senate Bill 102 (SB 102), also known as the Live Local Act, was passed. The implementation of the Live Local Act works to address housing issues in the state of Florida, directing $711 million into programs to make housing more affordable for residents. Continuing to enact policies like the Live Local Act to make housing more affordable for teachers and residents will not only benefit schools, but also the students and families in these communities. Edited by Michaela Galligan, Vittorio Nastasi, Alexander Kajda, and Chloe Offutt