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Miami bypasses New York City as least affordable housing market in US, according to report

5 Florida cities make least affordable list
Miami skyline, April 6, 2021
Posted at 1:39 PM, Feb 18, 2022
and last updated 2022-02-18 17:22:03-05

MIAMI — This will come as no surprise to most South Florida residents. Living here is getting more expensive every day.

In the last year, renters and homebuyers have experienced a gripping housing crisis as prices have surged thousands of dollars.

In fact, Miami is now the least affordable housing market in the nation, overtaking New York City.

RELATED: Read more Priced Out of Paradise coverage

That's according to a report released this month by the RealtyHop real estate website.

The median household income in South Florida's most populous city is $43,401 with a median home price being a whopping $589,000.

New York City skyline, June 15, 2021
A view of the New York City skyline, with the Empire State Building in the center, is seen from One World Trade, in New York, Tuesday, June 15, 2021.

Those figures equate to residents having to spend 78.71% of their income for homeownership, slightly overtaking New York City's 77.98%.

RealtyHop released a chart that shows the top 50 least affordable cities in the U.S. and five of them are in Florida.

Cities in the Sunshine State making the dreaded list include:

1. Miami
7. Hialeah
23. Tampa
47. Orlando
48. St. Petersburg

According to a report from the real estate website Redfin, across the country rents increased by 14 percent at the end of 2021, which is the biggest jump in more than two years.

In the past year, rents skyrocketed in South Florida, and were the highest increases in the country. According to Redfin, rents increased 36 percent in West Palm Beach, Fort Lauderdale and Miami.

West Palm Beach palm trees
Palm trees line the streets of downtown West Palm Beach.

Cash sales for homes in Palm Beach County rose 29.4 percent last year, rising to 40.9 percent in 2021 from 31.6 percent in 2020, according to Florida Realtors.

California cities top high-cost of living list

As bad as the surging cost of living currently is in Florida, the report shows that 15 cities in California are among the top 50 least affordable.

Los Angeles was ranked at No. 3, Long Beach at No. 6 and San Francisco at No. 8.

Where are the most affordable housing markets?

Have you had enough of the high cost of living in the Sunshine State and pondering an out-of-state move?

The RealtyHop report said Wichita, Kansas, remains the most affordable city in the U.S. with home prices falling over the last few months, coming in at a median price of $145,000.

Other affordable cities making the list include:

  • Fort Wayne, Indiana
  • Detroit, Michigan
  • Lubbock, Texas
  • Cleveland, Ohio