It seems to be harder than ever to buy a home in the United States, so NBC6 is diving in deeper — taking a look at how much Floridians actually need earn in order to afford a home in the Sunshine State.
According to a report by Redfin, American homebuyers need to be earning about 15% more than they did last year; however, wages are only up 5%.
For those wondering what we mean by affordable — a homebuyer must spend no more than 30% of their income on housing.
South Florida has especially seen home prices shoot up recently, and Floridians looking to buy for the first time are among those struggling the most.
The annual income required to afford median-priced home in Miami alone, is just over $143,000 — yet, the city has the second highest home vacancy rate in the nation.
This is partially due to the fact that Miami, like several other places in Florida, is a very popular place for secondary homes and short-term rentals.
In Miami particularly, many wealthier homeowners do not spend most of the year there — as they permanently reside elsewhere.
WFLA compiled a list of the annual income needed to afford a home in specific Florida cities, based on Redfin’s overall analysis.
The data is reportedly based on an analysis that compared median monthly mortgage payments in August 2023 and August 2022.
| Metro area | Annual income required to afford median-priced home |
YoY change, annual income required to afford median-priced home | Median monthly mortgage payment | Median home-sale price |
| Cape Coral | $108,249 | 16.9% | $2,706 | $396,900 |
| Fort Lauderdale | $114,549 | 22.2% | $2,864 | $420,000 |
| Jacksonville | $99,549 | 15.2% | $2,489 | $365,000 |
| Lakeland | $88,639 | 13.4% | $2,216 | $325,000 |
| Miami | $143,187 | 33.4% | $3,580 | $525,000 |
| North Port | $123,888 | 17.4% | $3,097 | $454,240 |
| Orlando | $108,597 | 18.5% | $2,715 | $398,175 |
| Tampa | $103,613 | 17.3% | $2,590 | $379,900 |
| West Palm Beach | $125,459 | 24.4% | $3,136 | $460,000 |
West Palm Beach took the second highest spot in Florida, for the annual income required to afford a median-priced home, coming in at $125,459.
Fort Lauderdale was also one of the higher Sunshine State values, at $114,549.
Tampa and Orlando were notably a bit lower — with annual incomes of $103,613 and $108,597.
Jacksonville was just one of two under $100,000 on the Florida list, at $99,549.
In Miami, homebuyers must earn 33% more than a year ago to afford the typical home – the biggest percent increase of the major U.S. metros, according to Redfin.
Homebuyers in Miami need to earn $143,187 annually to afford the area’s typical monthly mortgage payment of $3,580, Redfin reported.
If you’re not a first-time homebuyer or able to pay all-cash — affordability is likely to be less of a problem.
Buyers able to use cash don’t have to deal with high mortgage rates and are already likely to earn more than the income necessary to afford the home they want.
Buyers who are selling a home to buy another one are in a better boat than first-timers as well, Redfin’s analysis explained. This is due to the fact that they’ve likely built up equity in their current home, which will help ease monthly payments.
