With inventory scarce in Miami-Dade County, it’s cheaper to buy than rent, according to a National Housing Conference study reported in the Miami Herald.
The national housing group found depressed real estate values have put homeownership within reach for many middle-class workers, but with supply far exceeded by demand, rents in South Florida are surging.
“It’s much better off on the homeownership side,’’ Maya Brennan, a researcher for the center, told the Herald. “In Miami, the negative part of the story is how expensive the rental market has become.”
The recession and South Florida’s collapsed real estate market did wonders for easing home prices, but cash-paying investors appear to have benefited most. Mortgages are still difficult to obtain, forcing would-be homebuyers to join the renters pool and inspiring landlords to jack up rents.
In Miami-Dade, a worker needs to earn about $43,000 to buy a house and $45,000 to rent. In 2007, the average rent was $1,018 a month in Miami-Dade, compared to $1,122 now. But the median price for a home went from $290,000 to $160,000. [Miami Herald] — Emily Schmall