Apartment rents have risen dramatically in South Florida, requiring an even bigger chunk of the average paycheck, according to a newly released report.
In the third quarter, the median rent in the Miami-Fort Lauderdale metro required a whopping 41 percent of the median income, which comes out to about $7,000 more a year than prior to the housing bubble, according to the report by Zillow. The listings website defines the “pre-bubble years” as 1985 to 2000, when the median rent required 28.5 percent of the median income, which in Miami is $53,651, a spokesperson said.
Mortgage payments are also requiring a bigger share of income: 21.3 percent in the third quarter compared to 20 percent historically.
Earlier this month, Apartment List released a report that ranked Miami as the least affordable metro for renters in the U.S. last year. Nearly 63 percent of Miami renters spent more than 30 percent of their income on rent in 2016, according to Apartment List. Rents are also expected to keep rising.
Across the country, renters in 34 of the 35 largest markets, Miami included, are spending a larger share of their paychecks on rent, Zillow said. Los Angelinos spent the biggest share of their income on rent in the quarter – a whopping 48.4 percent – compared to the city’s historic average of 36.2 percent. That’s a difference of more than $8,000 a year.
In the New York-northern New Jersey market, renters were sacrificing 39.3 percent of their income on housing, up from the historic average of 26.2 percent – a difference of about $9,500.