Miami is one of least accessible cities in the country for families looking to buy homes, according to a new report from Creditnews Research.
The financial news company ranked 50 cities in the United States by the percentage of neighborhoods where home prices are out of reach for the typical couple’s household.
Los Angeles ranked first on the list of top 20 cities with the least affordable housing markets for families, followed by St. Louis in second place and Boston in third place.
In each of these cities, 100% of neighborhoods are out of reach for married couples earning an average annual income, CreditNews Research found.
Three other Florida cities – Orlando, Tampa and Jacksonville – made the list of places where homes in some neighborhoods are too expensive for couples.
The most affordable U.S. cities for homebuyers are all outside of Florida, the report said. They include Cleveland, Hartford, Connecticut and Memphis, Tennessee.
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Where does Miami rank on the list of inaccessible cities in the US?
Miami ranked 8th on the list of US cities with the highest percentage of neighborhoods where homes are too expensive for families earning an average couple’s income.
The average household income for a couple in Miami is $96,581, according to CreditNews Research.
The Miami area is listed as having 107 neighborhoods. Of these, almost 79% are beyond the reach of families earning an average married household income.
According to Creditnews Research, the percentage of Miami neighborhoods considered unaffordable for average families grew by 34.7% during the COVID-19 pandemic.
What other Florida cities made the list?
This is where Florida’s metro areas rank in terms of the percentage of neighborhoods where housing is out of reach for typical families, according to Creditnews Research.
#17: Orlando, 38% of neighborhoods considered inaccessible
#22: Tampa, 31% of neighborhoods considered inaccessible
#25: Jacksonville, 24% of neighborhoods considered unaffordable
How were cities classified?
To develop its ranking, Creditnews Research “looked at the average income of couple households in each city as of 2022 and adjusted it for real wage growth in 2023.”
It then analyzed the average value of a home in 5,800 neighborhoods in the country’s 50 largest cities and compared the cost to the average household income in those cities.
If mortgage prices in a neighborhood exceeded the average gross household income by 25%, they would be considered unaffordable.
Creditnews Research obtained information from the Federal Reserve Bank, the US Census Bureau and Zillow for its report.
