Factors outside the schoolhouse continue to disrupt superintendents’ efforts to award teachers with sustainable salaries. Now, the housing market is re-emerging as a major barrier.
Housing costs outpace teacher salaries
Between 2019 and 2025, housing costs have increased by as much as 51% in some areas, according to new research from the National Council on Teacher Quality. The researchers argue that housing affordability was already a problem in 2019, meaning that the situation has worsened.
According to the data, inflation has increased by nearly 26% since 2019, and the housing market tells a more alarming story. By 2025, the cumulative growth in home prices rose to about 47% and rental increases to nearly 51% on average.
The key takeaway here is that teacher salaries have only grown half as much, by 24% on average, the data reveals. The gap is widening, especially for new teachers.
However, there are some exceptions. For instance, as a result of state-mandated salary increases, Albuquerque Public Schools saw a nearly 60% salary growth for new teachers in 2019, outpacing the area’s 51% rise in rental prices and falling just short of the 65% increase in housing prices.
In 2022-23, the district invested in teacher salaries even further by raising starting teacher salaries by nearly $9,000, regardless of degree attainment.
The research points to the Detroit Public Schools Community District as another example where starting teacher salaries are a priority. While rental and home prices grew similarly to national averages, increases in starting teacher salaries have outpaced the nation.
In Detroit, salaries for new teachers with master’s degrees have grown upwards of 50% since 2019, while educators with bachelor’s degrees earned a 42% increase. This growth is largely a result of the district’s decision in 2020-21 to reimagine how it pays teachers.
The district decided to rehaul its salary schedule, giving teachers a lifetime earnings increase of between $250,000 and $300,000, according to the National Council on Teacher Quality.
Potential solutions
At a time when many school districts are strapped for cash without the help of pandemic relief funds, research from the Brookings Institution offers some innovative ideas to reform teacher compensation beyond basic salary increases.
“If we’re going to spend financial and political capital on teacher compensation reform, we must offer more than a one-size-fits-all solution to a complex problem,” writes Michael Hansen, a senior fellow in the Brown Center on Education Policy. He argues that teacher compensation reform will be successful when schools can ensure consistent access to quality teaching for all students, “not just slow the revolving door.”
Instead, Hansen offers four research-based recommendations to both pay teachers more and promote a robust supply of quality teachers:
- Pay teachers more for teaching in high-need schools and subjects.
- Pay teachers more for high-quality teaching, especially when they take on extra responsibilities.
- Pay all teachers at the master’s degree rate, without making them get one.
- Do more to supplement the pay of preschool teachers, not just K12 teachers.
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