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Affordability

LET’S TALK ABOUT AFFORDABILITY

In 2013, Miami’s cost of living was less than 8% higher than the U.S. average. Today, the cost of living in Miami is more than 12% higher than the U.S. average.

 

While the cost of living in Miami continues to increase at a more rapid pace than the national average, local income levels are falling behind.

 

On a relative basis, the increase in Miami’s median household between 2013 and 2015 was a third lower than the U.S. average.

WHAT IS THE RELATIONSHIP BETWEEN INCOMES & HOUSING?

A wide gulf exists between median household income within Miami-Dade County and the cost of housing.

 

Median household income in Houston, for example, is more than 25% greater than in Miami. The median price of a home in Houston, however, is 33% less expensive than in Miami.

 

Due to the divide between local incomes and local housing prices, Miami-Dade County households are among some of the most cost-burdened in the country.
Two-thirds of renters, for example, spent more than 30% of their income on housing.

WHY IS THERE A DISCONNECT BETWEEN INCOMES & HOUSING PRICES?

Miami’s improved economic outlook has led a growing number of developers to disproportionately focus on high-end housing.

 

Between 2011 and 2013, the average estimated construction costs of housing units permitted in Miami increased by more than 17%.

 

In comparison, nationally, the increase was less than 4% during this period.

DON’T INCREASED PRICES REFLECT GREATER PROSPERITY?

Miami’s current economic momentum has not translated into lowering the high poverty rate.

 

One in five Miami-Dade County residents currently live in poverty, a figure that has remained virtually unchanged during the past four years.

 

Of residents living in poverty, 25% are 17 years old and younger.

WILL EMPLOYMENT GROWTH SOLVE THE AFFORDABILITY ISSUE?

Between 2013 and 2015, the rate of employment growth within Miami-Dade County doubled.

 

Miami’s recent rate of job creation has outpaced other communities such as Chicago, San Diego and New York City.

 

Strong local employment growth, however, has not had a significant impact on reducing the county’s poverty rate.

ISSUE AREAS THE INSIGHT IS RELATED TO

economy1

ECONOMY

housing

HOUSING & AFFORDABILITY