South Floridians need to make $65,120 per year to afford a mortgage: report

Miami /
Aug.August 22, 2016 12:45 PM

There’s no question that South Florida’s housing market is becoming unaffordable for many of its residents, but a new report shows the gap could be closing.

According to a second-quarter survey from mortgage info site HSH.com, a South Florida homebuyer would have to pull in at least $65,120 per year to afford mortgage payments on a median-priced home. The report assumes a 20 percent down payment and bases its data off two key metrics: mortgage rates and median home prices.

That required income makes South Florida the 11th most expensive metro area to buy a home in the country, behind Sacramento and Portland. It also doesn’t take into consideration that the median income of Miami-Dade ($43,099), Broward ($51,574) and Palm Beach counties ($52,878) make it difficult for a single person to purchase a home.

At the top of the list of most unaffordable areas was San Francisco, where the report says residents would have to make $161,947 per year to comfortably make home payments.

But there’s one bright spot for South Florida, according to the report: between the first and second quarter, $1,500 was shaved off the required salary for a home purchase, marking the largest drop in the country.

Contributing to that decline were cheaper mortgage rates and home prices. Mortgage rates in the region dipped .17 percent to 3.76 percent, while the median home prices across all three counties fell just under 1 percent to $310,000. — Sean Stewart-Muniz


Related Articles

arrow_forward_ios
(iStock)
Home prices across globe hit records, prompting worries of bubble
Home prices across globe hit records, prompting worries of bubble
Lennar Executive Chairman Stuart Miller (iStock)
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
Rent-to-own startup Divvy Homes expands to South Florida
Rent-to-own startup Divvy Homes expands to South Florida
Rent-to-own startup Divvy Homes expands to South Florida
Ben Schachter, Sean Black and Mike Pappas (Signature, Getty, Keyes)
Knock expands home lending program into South Florida 
Knock expands home lending program into South Florida 
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley
Baptist, Belmont gain approval for luxury senior living in Coral Gables
Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)
Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)
Sunrise affordable senior housing facility sells for $30M
Sunrise affordable senior housing facility sells for $30M
Mark Zilbert
Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...