3 Affordable and 3 Unaffordable Florida Cities for First-Time Homebuyers!
Buying a “starter home” is a significant step towards homeownership. However, in today’s housing market, that dream is becoming harder to achieve. According to a recent Redfin report, a family needs to earn around $80,000 a year to afford a median-priced starter home.
That’s an increase of 4.4% from last year and just $500 below the highest level ever recorded. For many families, this means that even starter homes, which are typically more affordable, are now out of reach.
In fact, in half of the 50 most populated cities in the U.S., families earning the local median income can’t afford a starter home. Florida, in particular, is facing significant challenges. In this article, we’ll look at three cities in Florida where the average family can’t afford a starter home and three where they still can.
3 Florida Cities Where Families Can’t Afford a Starter Home
Miami, Florida
In Miami, the cost of a starter home has surged beyond what many families can afford. With a median sale price of $320,000 for a starter home, a family needs to earn about $105,657 per year to make this purchase possible. However, the median household income in Miami is just $71,749. This gap between income and housing prices makes it difficult for the average family to buy their first home here.
- Median Sale Price of Starter Home: $320,000
- Median Household Income: $71,749
- Income Needed to Afford a Starter Home: $105,657
Orlando, Florida
Orlando is another city where starter homes are increasingly out of reach. The median sale price for a starter home here is $267,000, while families need to earn $86,903 annually to afford it. Unfortunately, the median household income in Orlando is only $80,102. While the gap isn’t as wide as it is in Miami, it’s still enough to make homeownership difficult for many.
- Median Sale Price of Starter Home: $267,000
- Median Household Income: $80,102
- Income Needed to Afford a Starter Home: $86,903
Tampa, Florida
In Tampa, the situation is also challenging. A family needs to earn $81,499 per year to afford a starter home, which has a median price of $250,000. However, the median household income in Tampa is just $75,221. Like in Orlando, the gap between income and home prices puts homeownership out of reach for many families.
- Median Sale Price of Starter Home: $250,000
- Median Household Income: $75,221
- Income Needed to Afford a Starter Home: $81,499
Fort Lauderdale, Florida
Fort Lauderdale is one of the few cities in Florida where families can still afford a starter home. The median sale price of a starter home here is $225,000, and the income needed to afford it is $77,137. With a median household income of $78,583, families in Fort Lauderdale are just above the threshold to afford a home, making it one of the more affordable cities in the state.
- Median Sale Price of Starter Home: $225,000
- Median Household Income: $78,583
- Income Needed to Afford a Starter Home: $77,137
Jacksonville, Florida
In Jacksonville, the median sale price for a starter home is $240,000, and a family needs to earn $77,704 to afford it. With a median household income of $83,672, families here have a bit of financial breathing room. Jacksonville remains one of the more affordable cities for first-time homebuyers in Florida.
- Median Sale Price of Starter Home: $240,000
- Median Household Income: $83,672
- Income Needed to Afford a Starter Home: $77,704
Tallahassee, Florida
While not mentioned in the original list, Tallahassee is also a city where families can afford starter homes. With relatively lower housing costs compared to other Florida cities, Tallahassee’s housing market allows many families earning the median income to become homeowners.
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Conclusion
Florida’s housing market presents both challenges and opportunities for families looking to buy a starter home. In cities like Miami, Orlando, and Tampa, the gap between household income and housing prices makes it tough for families to take that first step toward homeownership. However, cities like Fort Lauderdale and Jacksonville offer more affordable options where the dream of owning a home is still within reach.
As the housing market continues to evolve, prospective homebuyers must understand the financial realities of different cities. Families should carefully consider the cost of living and income requirements before deciding where to settle down.