The surge in transplants to Florida since the pandemic has driven prices soaring, undermining Sunshine State’s major asset: affordability.
In response to May RealtyHop Housing Affordability Index — which compares the cost of home ownership to income — Miami is currently the least affordable housing market in the country.
The median home price in Florida’s largest city is $585,000. To find a way to afford it, homeowners can expect to spend as much as 79.9% of their monthly income on home ownership expenses, based on RealtyHop.
The information shows that that is greater than the amount paid by homeowners in Los Angeles (77.5%), Newark, NJ (72.4%) and New York (70.6%).
Fifth on the list was one other Florida city, Hialeah – positioned about 12 miles northwest of Miami – with 65.79%, based on the report.
![Northeasterners flocked to Florida to reduce rent expenses and pay less taxes. Since then, the influx has driven up mortgage rates, which are reducing the state's enticing affordability.](https://nypost.com/wp-content/uploads/sites/2/2023/06/NYPICHPDPICT000012904992.jpg?w=1024)
“The proven fact that Florida is getting dearer makes it less attractive to homebuyers,” said Daryl Fairweather, chief economist at Redfin Corp. Bloomberg.
The RealtyHop report also warned that Orlando could change into less affordable after the city jumped seven spots higher in the unavailability rating to thirty fifth.
“Spring brought more activity to the Orlando housing market this month, [and a] higher demand from buyers results in higher asking prices, even with more inventory,” the report reads.
Also on the list is St. Petersburg (thirty fourth) and Tampa (thirty sixth).
The number of individuals migrating to the Sunshine State has declined over the past three years.
In response to data from 2021, 62% more people moved to Florida than left it United Van Lines.
In 2022, that number dropped to 58%, and thus far in 2023 it was 56%.
![Miami was rated by RealtyHop as the most inaccessible city in the US. The real estate agency also stated that Hialeah, Orlando, St. Petersburg and Tampa are getting more expensive.](https://nypost.com/wp-content/uploads/sites/2/2023/06/NYPICHPDPICT000009370773.jpg?w=1024)
Currently, the residents who seem to profit most from the cost of living in Florida and the absence of a state income tax are high-income New Yorkers.
Financial Information Provider SmartAsset evaluation how much people making six figures in cities like New York, San Francisco and Chicago would save in the event that they packed their bags for Florida’s largest city.
A Manhattan resident with a salary of $650,000 would save $195,000 through lower taxes and living expenses in Miami.
Employees with a salary of $650,000 in New York face an efficient tax rate of 45% in New York—after federal, state and native taxes—which drops to 35% as a Miami resident.
In response to the study, the same Manhattan resident who earns $150,000 could save nearly $50,000 by moving to Miami.
A New Yorker’s cost of living would even be significantly reduced if he moved out of Manhattan, where average overhead costs are 137.6% higher than the national average.
Meanwhile, in Miami, costs are only 22.8% higher than the national average.
High-income San Franciscans can even profit financially from moving to Miami.
In response to a study in San Francisco, where the cost of living is 83% higher than the US average and the effective tax rate is 46%, people earning $650,000 a yr will earn $153,000 more in Miami.
Affluent Chicagoans could have less incentive to maneuver, except for the weather, although there remains to be little opportunity for financial savings.
A Windy City resident earning $650,000 would save just $10,000 because the cost of living in Chicago is 17.1% higher than the norm, despite the effective tax rate being 40%, based on the study.