Here’s how much you need to make to buy a house in Miami
Tuesday Sep 05th, 2017Share
As home prices continue rising in South Florida, so does the minimum salary needed to afford a house.
In Miami, the income needed to buy a median-priced home rose to nearly $72,000, according to a report from HSH.com. July marked the 68th consecutive month that single-family home prices have risen in Miami-Dade.
The median price of a single-family home in Miami-Dade rose 12 percent annually in July to $335,000, according to the Miami Association of Realtors.
HSH, a mortgage and consumer loan research website, used the standard 28 percent front-end debt to income ratio and a 20 percent down payment to calculate salary requirements.
Miami is the 11th most expensive metro for homebuyers. San Jose, California is the most expensive city, requiring a salary of at least $221,000 to buy a median-priced house. Los Angeles and New York City ranked fourth and fifth on the list, with minimum incomes of $101,500 and $99,000, respectively.
If buyers put down 20 percent, or $67,000, for a median-priced home, their monthly payments in Miami come out to nearly $1,700. If they only put down 10 percent, or $33,500, the required salary to afford a house rises to about $83,000, according to HSH.
Across the country, the median increase in salary needed to keep up with rising taxes, insurance and home prices rose 9.3 percent. National home prices rose to $255,600 in July, which means the income needed to buy a median-priced house in the U.S. is about $56,000.