Miami has now surpassed New York as the most expensive housing market in the country. During the pandemic, home prices skyrocketed in the Miami area, a market that became even hotter due to out of state buyers and renters.
The median home price in Miami is now $589,000, meaning that a household would have to attribute almost 80% of its monthly income to its mortgage payment. This is based on the projected median household income of $43,401. With that percentage of the household income going to its mortgage, a family producing the median household income would not qualify for a purchase of the median price.
Not only has Miami surpassed New York as the least affordable housing market in the US, but wages in Miami have not gone up. We are still seeing a low median household income of $43,401, while in states like New York and California, the median household income is just under $69,000. The out of state buyers and renters often bring in more money than locals, causing prices to inflate and locals to be at odds. A Florida Realtors Report found that home health care and personal care aides, which earn the least out of the 17 occupations studied, would need to earn over three times their median annual salary to purchase a home, and almost double their salary to rent a one-bedroom unit.