Homeownership is slipping further out of reach for many Americans—but nowhere is the problem more severe than in Miami.
According to a new analysis by Bankrate, less than 0.5% of homes in the Miami metro area are affordable for a typical household. The findings highlight a growing affordability crisis fueled by soaring home prices, high mortgage rates, and a chronic shortage of housing supply.
A National Problem With Local Extremes
Across the U.S., more than 75% of homes currently on the market are unaffordable for middle-income households. But Miami, along with Los Angeles and San Diego, stands out as one of the least attainable housing markets in the country.
As of July, fewer than 1 in 50 homes for sale in these metros fell within reach of a typical household’s income—placing Miami among the most expensive markets relative to wages.
Home Prices Have Skyrocketed Since the Pandemic
Local experts point to dramatic post-pandemic price growth as a key driver. The median price of both condos and single-family homes in Miami has risen more than 80% since COVID-19, according to the Miami Association of Realtors.
This surge has been driven by an influx of wealth, remote workers, and high-earning professionals relocating to South Florida—reshaping the market at every price level.
Income vs. Home Prices: The Growing Gap
Bankrate’s analysis shows the median U.S. household earns roughly $80,000 per year, while buying a median-priced home of about $435,000 requires an income closer to $113,000.
Homes were considered affordable only if total housing costs—including mortgage payments, insurance, and property taxes—remained below 30% of gross household income. By that standard, the vast majority of listings fail to qualify.
Where Housing Is Still Affordable
While coastal metros struggle, several Rust Belt and Southern cities offer clearer paths to homeownership. In some of these markets, nearly half of available homes remain affordable based on local incomes.
The key difference: housing supply.
Regions that increased homebuilding in recent years—particularly parts of the South and West—have fared better than the Northeast and Midwest, where housing construction has lagged and inventory remains 40% to 60% below pre-pandemic levels, according to Realtor.com.
Why Supply Is the Real Issue
Experts warn that easing mortgage rates alone won’t fix the problem. Without a meaningful increase in housing supply—especially in high-demand job centers—affordability is unlikely to improve.
Bankrate analysts emphasize that places where people want to live and work need significantly more construction to stabilize prices and restore balance to the market.
Bottom Line
Miami’s housing market illustrates the broader U.S. affordability crisis in its most extreme form. With fewer than 1% of homes within reach of the typical household, rising incomes alone won’t solve the problem. Until housing supply catches up with demand, homeownership in Miami—and many major metros—will remain out of reach for most buyers.
