Florida Residents Need to Earn More Than $100,000 a Year to Buy a Median-Price Home, Study Finds
A new study reveals that Florida residents need to earn more than $100,000 a year to purchase a median-priced home.
Besides, To be considered middle class in this state, you would need an annual income close to $70,000.
The study, carried out by the independent financial agency bankrate.com, indicates that in 22 states in the country, including Florida, the only way to pay for a medium-priced home with a mortgage is to have an income that exceeds six figures.
According to the analysis cited by América TeVe Miamithe study was conducted assuming a 20% down payment on the mortgage with a 30-year fixed rate.
In Florida, to ensure a manageable mortgage payment that does not exceed 28% of the household’s gross family income, without taking into account closing costs, you would have to earn regarding $115,000 a year, it was announced.
However, this study does not seem realistic to many residents in South Florida, where most homes cost more than 40% of a family’s gross income. Some residents who earn $70,000 a year cannot buy a home due to high interest and prices, an analyst told the outlet.
6-figure salary to buy a house in the United States
Florida is not the only state with high income requirements for home purchases. California and New York require annual incomes of $197,000 and $148,000 respectively, well above places like Mississippi, where an income of $63,000 per year might afford housing.
However, In Florida, income of more than $100,000 per year would not only be needed to access a median-priced homebut you would also have to earn regarding $68,000 a year to be considered middle class.
This has led many residents to work longer hours or even work two jobs to survive. “You can’t earn that amount and that’s why you have to have two jobs to survive on rent, food and clothing,” they told the aforementioned media.
Analyst Tino Díaz drew attention to the fact that Miami has become a popular destination for the ultra-wealthy, leading to an increase in home prices and a decrease in the availability of affordable housing.
The situation of the real estate market in Florida is alarming. Not only do residents need to earn more money to buy a home, they also face fierce competition from wealthy buyers.
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