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Real estate experts say Miami’s booming housing market is becoming increasingly unaffordable for middle-class buyers as wealthy Americans continue relocating to South Florida, making renting a more practical option for many, according to a Fortune report published Sunday.
Florida attracted more wealth from domestic movers than any other state in 2023, while new arrivals earned an average annual income of $122,530, nearly double the U.S. average salary of $64,505, according to Realtor.com migration data and the Miami Association of Realtors. At the same time, the average Miami home costs about $652,110, and buyers typically need annual incomes between $160,000 and $215,000 to afford a mortgage, according to Redfin.
Wealth Migration Meets Limited Supply
Craig Studnicky, CEO of South Florida luxury real estate firm ISG World, told Fortune that an unprecedented wave of wealth migration has collided with an already limited housing supply, pushing prices sharply higher.
Citadel founder and CEO Ken Griffin is among the high-profile executives who have relocated to Miami. Griffin has repeatedly defended Florida as Citadel’s long-term home, citing its business-friendly environment, and the firm is building a 1.7 million-square-foot office tower in the city. Other billionaires, including Amazon.com, Inc. founder Jeff Bezos and Former Google CEO Eric Schmidt, also own homes in South Florida Still, housing experts say billionaire purchases are not the primary driver of Miami’s affordability crisis. Ryan McKeveny, managing director of equity research at housing consultancy Zelman, said years of underbuilding, limited housing inventory and sustained demand have played a much larger role. Homes priced below $400,000 accounted for just 2% of active single-family listings in Miami-Dade County, while 42% of listings were priced at $1 million or more, according to the Miami Association of Realtors.Affordability Challenges Persist
The affordability pressures mirror broader housing trends across the U.S. Earlier this year, Zillow said the number of cities with $1 million starter homes had nearly tripled since 2020 as persistent housing shortages and strong demand pushed prices higher. Separately, the National Association of Home Builders has warned that a shortage of skilled construction workers continues to slow new home construction, raising costs and limiting housing supply nationwide.
For many middle-income households, experts say renting remains the more realistic option. Studnicky said someone earning about $75,000 annually can still live comfortably in South Miami by renting, while McKeveny said buyers earning around $100,000 may struggle to qualify for a mortgage on a typical Miami home. He expects home prices to remain relatively stable or decline modestly over the next year as inventory gradually improves.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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This article Jeff Bezos, Ken Griffin and Other Billionaires Keep Moving to Miami—Experts Say the Middle Class Is Paying the Price originally appeared on Benzinga.com.
