Can You Afford The Median Home In South Florida?
Most people in South Florida can’t afford the median-priced home, a new report suggests.
A family needs to make $63,048 a year to afford the median home, priced at $286,000, according to a study by HSH.com, a publisher of mortgage industry data.
Most people in South Florida make far less than that. The median income in Broward, Palm Beach and Miami-Dade counties is $48,458 a year, according to the latest figures from the U.S. Census Bureau.
HSH’s calculations include principal, interest, taxes and insurance. They assume a 20 percent down payment and no more than 28 percent of a family’s income going toward housing costs.
The monthly payment on a median-priced home in South Florida is $1,471.12, HSH said. The median means half of the homes cost more and half cost less. If a family in South Florida puts down only 10 percent, the median-priced home requires an income of $72,994 a year, HSH says.
Housing prices in South Florida have risen 7.92 percent in the past year, according to HSH, while mortgage rates have fallen 0.07 percent to an average of 4.07 percent. Ten metro areas saw prices rise faster than in South Florida. The largest price gain was 13.89 percent in Orlando.
HSH said affordability has remained stable in South Florida, as it has in most of the country.
“Affordability is especially important in this metro area as stagnant incomes and expensive new construction makes homeownership more difficult for residents,” the report says.
HSH points out that stagnant incomes and expensive new construction make homeownership difficult for South Floridians. Of 27 metro areas studied, South Florida ranked as the 10th least affordable. Pittsburgh was the most affordable, requiring an income of $31,135 for the median-priced home. The least affordable: San Francisco. A family there needs to earn $147,996 a year to afford the median-priced home: $781,600.