Florida is one of the most expensive states for housing, and Miami is the least affordable city in the country, according to a report. High demand, shortage of supply, increased migration trends since the pandemic and the explosion of mortgage ratesmake an expensive combination.
See: 7 Florida Cities That Could Be Heading For A Housing Crisis
To find: States with Failing Economy vs. States with Thriving Economy
According to Zillow, a typical Florida home is valued at $406,426, a whopping 22.4% annual increase. To put that into context, the national average home value is $357,544, an annual increase of 12.3%.
The state has also been a magnet for people wishing to relocate since the start of the pandemic. And Florida’s population grew 1.9% to 22,244,823 between 2021 and 2022, making it the fastest growing state and surpassing Idaho as the fastest growing state. faster than the previous year, according to new data from the Census Bureau.
The reasons that make the state attractive are legion, pleasant weather all year round, endless beaches, and let’s not forget: no state income tax. In comparison, New York, for example, has an income tax of 10.9%, California has a tax of 13.3%, Oregon has a tax of 9.9% and Georgia has a tax of 5.75%, according to the Tax Foundation.
In turn, this translates to Miami being the least affordable housing market in the country, according to RealtyHop. This month, the median asking price rose 0.50% from $595,000 to $598,000. RealtyHop added that a family earning an average family income of $44,581 must now spend 85.67% of their salary on housing costs.
The affordability crisis in the state means prices for single-family homes and condos in Miami-Dade County and Broward County rose between 9% and 14% in November compared to the same month in 2021, according to the Miami Herald, citing data from the Association of Miami Realtors.
Ken Johnson, a professor of finance at Florida Atlantic University, told the Miami Herald that low inventory continues to be a problem in the Miami real estate market. One solution, he added, would be to turn empty homes into longer-term rental properties rather than Airbnbs.
“We have a large number of Airbnbs that have taken long-term rentals out of the market and made them available for short-term rentals,” he told the Miami Herald. “A lot of them go back to long-term rentals because the rents are so high.”
There is, however, good news for 2023 for Americans who have headed south. Inventories started to recover in the latter part of the year, which could translate into lower prices.
Learn: 5 Best Southern Towns to Retire on a Budget of $1,500 a Month
Discover: What is the average social security benefit at age 65?
“Increasing inventory means more options and fewer bidding wars for Broward County homebuyers in our high-demand, low-supply market,” Broward-MIAMI President David Dweck said. , in a press release. “Like all of South Florida, Broward County has seen a surge of buyers from high-density, high-tax states. Sales are down year-on-year from a record year in 2021, but remain close to pre-pandemic totals despite high mortgage rates. »
More from GOBankingRates
This article originally appeared on GOBankingRates.com: Can you afford a house in Florida? Here’s why traveling south may be out of reach
Comments are closed.