PALM BEACH COUNTY, Fla. — Palm Beach County has been dubbed "Wall Street South" as many tech giants and other wealthy individuals call the area home.
For some long-time residents, it is increasing housing costs and forcing many to contemplate if they can continue to live here.
WATCH BELOW: Palm Beach County's rising median income fueling affordability crisis
A new report from Florida International University on affordability is putting a spotlight on the crisis.
FIU housing expert Dr. Ned Murray told WPTV on Thursday that the root problem in Palm Beach County stems from what people earn and the housing costs.
Murray said there's a trend of workers ages 20-29 leaving town.
"Palm Beach has been struggling in this area for quite some time," Murray said. "But as the study showed, it's really been the past few years where affordability levels have just really gone to a whole different level, even much worse than it was back during the housing bubble in the first decade."
Murray said the Area Median Income (AMI) is $104,000, but 80% of households in Palm Beach County are making less than about $83,000.
"We have an affordability mismatch between what people earn and what's in the inventory right now," Murray said. "If you're paying over 50% of your income on rent that doesn't work. Obviously, younger people are going to look elsewhere."
That $104,000 salary is the second highest in Florida — only topped by Collier County's $104,400.
Professions like finance, the legal field and tech sectors have seen the biggest growth in jobs.
Murray said the concern now is that he's seen workers moving out who are on the low end of the income bracket — like hospitality, health care and trade.
"Similar jobs in other states pay competitive wages and the housing market is a lot cheaper," Murray said. "If we're not doing well in the primary industrial sectors, our economy will struggle."
Palm Beach County officials report that home prices now cost six times more than the median income.
To afford a two-bedroom apartment at Housing and Urban Development (HUD) fair market rate, a person needs to make $89,040 annually.
"I think Palm Beach has become probably more so than Broward and even Miami Dade much more attractive as a place to live and obviously has the quality of life, but it also has now you know the brand so to speak that comes with a lot happened in the last couple years," Murray said.
Read FIU's full report below:
Matt Sczesny is determined every day to help you find solutions in Florida's coverage collapse. If you have a question or comment on homeowners insurance, you can reach out to him any time.
Read WPTV's latest "Coverage Collapse" stories below:
-
Shoppers saving big money buying used furniture and appliances
High inflation is pushing shoppers to secondhand stores for furniture and appliances. Experts share what to know before you buy used to save big.
Fresh produce prices up 6% forcing Palm Beach County families to adapt
Shoppers are changing how they buy groceries as fresh fruit and vegetable prices climbed more than 6% over the past year, according to Thursday's federal inflation report and new consumer research.
Housing market shows signs of life; affordability challenges remain for buyers
Home sales are ticking up, but buyers still face high rates and low inventory. Here's what experts say you should do now.
Rising oil prices push inflation to highest level since April 2023
U.S. inflation rose 4.2% in May, the highest since April 2023, driven by surging energy costs, erasing hopes for Fed rate cuts and raising hike concerns.
