Nicknamed “The Magic City,” Miami has become much less magical for natives and local residents who are being pushed out of their homes due its status as the least affordable city in the country.
Based on recent data compiled by several entities, Miami now tops the list of unaffordable cities, beating out New York and Los Angeles, which ranked No. 2 and No. 3 respectively.
The median price of a home in Miami is $589,000, while the median household income is $43,401, RealtyHop reported. The popular tourist destination jumped to to the No. 1 spot from No. 5, which it held in March 2021, according to AdvisorSmith.
“Home prices in Miami have been on the rise since last year, and the trend has continued into 2022,” RealtyHop reported in February 2022. “The city has now moved up to be the least affordable housing market in the nation. Households would need to contribute 78.71% of their income towards homeownership costs, which is up 1.55% from last month.”
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Real estate news platform The Real Deal also reported that rent in Miami jumped 38 percent compared to a year ago, based on data from Zumper.
Smaller cities surrounding Miami have also been impacted by the price hikes on rents and mortgages. It is a problem that has driven many natives north in search of better housing.
Rochelle Veal responded to a Facebook post asking if anyone had relocated due to the outrageous cost of living in Miami. “Built my house in PSL [Port St. Lucie] not necessarily for affordability,” she wrote. “It was getting outrageous in Broward (which is just north of Miami) so we decided it was time to go to get more bang for our buck. Even with the commute for work, it was worth it.
“If I told you what I paid for my house in comparison to a smaller Model in Parkland that we were considering you would laugh and be shocked!” Veal continued. “However, the prices are steadily increasing here as well. Half of my street came from Broward, Boca, Miami – the rest came from higher priced states and used their money.”
Veal’s story is common. Belinda Sime, the owner of Sime Realty, a boutique commercial real estate brokerage in Miami, said it’s impacting the amount of real estate inventory for sale.
“You drive around, you don’t see many for sale signs, don’t see anything,” Sime told CBS4. “It’s like literally crazy right now. We have so many people coming here and we don’t have any supply.”
Sime credited lax tax laws as one of the reasons for the influx of new residents. However, RealtyHop data scientist Shane Lee said the ability of people with higher incomes to work remotely is also driving people to Miami.
“What we’ve been seeing since the pandemic is Miami is the destination for a lot of out-of-state residents,” Shane said. “These people often bring in more money than [locals].”
PHOTO: The world’s tallest digital “Merry Christmas” candy cane lights up the Paramount Miami Worldcenter skyscraper in downtown “Magic City,” Dec. 23, 2021. (Eva Marie Uzcategui/AP Images for Paramount Miami Worldcenter)