Since the pandemic there has been a real estate boom in South Florida, and Miami has overtaken Los Angeles as the second least affordable housing market in the country.
Miami is ranked No. 2 of least affordable housing, second only to New York City, which has maintained its reputation as the most expensive housing market in the country.
“Miami overtook L.A. as the second most expensive housing market in the nation, even though the price decreased slightly since our last report,” states a report. “A household in Miami should expect to pay $2,653 per month toward homeownership costs, or roughly 81.55% of median incomes.”
The average Miami household should expect to spend 81.6 percent of their income on homeownership costs, which in Miami is $39,049, while the median home price is $549,000.
Home sales dropped for the first time in a year, and prices remained steady without shooting up, but low interest rates and a shortage of homes mean that it could still be tough for buyers to land a house.
Closings in Palm Beach County plummeted 10.5%, Broward, Palm Beaches & St. Lucie were down 2.8% in Broward County and 3.5% in Miami-Dade.
“It’s an indication that prices could be coming down in the future, but there are other signs that we are not there yet,” said Ken H. Johnson, real estate economist at Florida Atlantic University. "Rather than a cool-down, the drop in sales is more likely a reflection of families heading back to school and waiting for the spring to buy a home."
Since the market remains so hot, it’s likely that South Florida will reach its peak in appreciation later than the national market.