In Fla., median income is less in six metros and higher in three, ranging from an $88.7K yearly income in Lakeland (up 13.4% year-to-year) to $143K in Miami (up 33.4%).
SEATTLE – The average U.S. household must earn $114,627 to afford a median-priced U.S. home, up 15% ($15,285) year-to-year and more than 50% since the start of the pandemic – the highest annual income necessary to afford a home on record, according to a report from Redfin.
In the nine Florida metros listed in the study, it’s more affordable in six and less affordable in three. A Lakeland family needs only $88,639 for a median home, though that’s still 13.4% more than they needed one year earlier. In Miami, that family needs $143,187 – a notably high 33.4% increase in one year. Miami’s year-to-year uptick was the highest in the U.S.
Florida metro – Yearly income needed – Year-to-year change
- Cape Coral: $108,249, up 16.9%
- Fort Lauderdale: $114,549, up 22.2%
- Jacksonville: $99,549, up 15.2%
- Lakeland: $88,639, up 13.4%
- Miami: $143,187, up 33.4%
- North Port: $123,888, up 17.4%
- Orlando: $108,597, up 18.5%
- Tampa: $103,613, up 17.3%
- West Palm Beach: $125,459, up 24.4%
“In a homebuyer’s ideal world, rising mortgage rates would push demand and home prices down enough to make up for high interest payments, but that’s not what’s happening now: Although new listings are ticking up slightly, inventory is still near record lows as homeowners hang onto their low mortgage rates – and that’s propping up prices,” says Redfin Economics Research Lead Chen Zhao.
“Buyers – particularly first-timers who are committed to getting into a home now – should think outside the box. Consider a condo or townhouse, which is less expensive than a single-family home, and/or consider moving to a more affordable part of the country or a more affordable suburb.”
The typical U.S. homebuyer’s monthly mortgage payment now is $2,866, an all-time high and up 20% from $2,395 a year earlier. As a comparison, the typical monthly payment was $1,581 in August 2020, based on that month’s average mortgage rate of 2.94% and median home price of $329,000.
The typical American household earns about $40,000 less than the income needed to buy a median-priced home – roughly $75,000 in 2022, the most recent year for available data. Hourly wages rose in 2023, but not as fast as the income needed to buy a home.
© 2023 Florida Realtors®
©Florida Realtors®
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