Housing Affordability Statistics for Miami-Dade County, Florida
The Housing Market is Hot in Miami
Low interest rates and an influx of investors from high-density areas seeking lower taxes have created an uptick in demand that is pushing up home prices in Miami-Dade County, Florida. Average wage earners are being priced out of the local market.
ATTOM’s affordability index data provides quarterly updates on home affordability trends for counties nationwide. The index shows that in Miami-Dade County, where median home prices have increased threefold in the last ten years, homeownership is increasingly less affordable for the average wage earner.
ATTOM’s Latest Housing Affordability Highlights for Miami-Dade, Florida
The affordability index provides key points of reference for property investors.
Homeownership in Miami-Dade County, Florida, is increasingly less affordable for the average wage earner.
Price gains are outpacing wage growth in Miami-Dade County.
Median home prices have shown a threefold increase in the last ten years.
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Housing Affordability Index Summary for Miami-Dade County, Florida
The population of Miami-Dade County is one of the highest in the nation at 2.7 million. Cities in the county include Miami, Hialeah, Coral Gables, Homestead, Doral, Cutler Bay, and Key Biscayne.
Home prices in the county have rocketed in the last ten years while wage increases are not keeping pace. Annual wages in 2005 were approximately $40,500. In 2015, they were approximately $45,000, and they currently hover around $62,000, showing a slow increase over the past fifteen years. The median income needed to buy an average home in Miami-Dade County is around $70,000.
Median home prices, on the other hand, have been volatile. The median home price was around $235,000 in 2005, but dropped as low as $110,000 in 2010 after the housing crisis. Median prices are currently around $384,000, which is more than a threefold increase in the last 10 years.
The current housing affordability index indicates that housing in Miami-Dade County is becoming increasingly less affordable. Price gains outpace wage growth in three-quarters of markets, and home-price appreciation is greater than weekly wage growth in Miami-Dade County, Florida.
The current affordability index is around 90. An index of less than 100 is considered less affordable than the historical average.
ATTOM’s housing affordability index for Miami-Dade County, Florida, analyzes median home prices derived from publicly recorded sales deed data collected by ATTOM and average wage data from the U.S. Bureau of Labor Statistics.