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.
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.
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.
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.
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.