SerpApi.Org
Nine out of 10 adults under 40 said it's harder for young adults to buy a home today than it was for their parents' generation, according to a report published by the Pew Research Center. South Florida proved particularly unaffordable for homebuyers within that age range.
Metro areas were classified into four groups based on price-to-income ratio — very affordable, somewhat affordable, somewhat unaffordable and very unaffordable. Homes in the area encompassing Miami, Fort Lauderdale and West Palm Beach were considered "very unaffordable" for households headed by a person under 40, with a price-to-income ratio equal to 5.
The report's categories were based on a Pew Research Center analysis of the 2024 American Community Survey, and included 160 metro areas with available data.
Start the day smarter. Get all the news you need in your inbox each morning.
Based on that survey, the median home price in the Miami, Fort Lauderdale, West Palm Beach metro area was $460,000, while the median household income for those headed by people under 40 was $92,591.
Other metro areas in Florida, while still expensive, were largely labelled as "somewhat unaffordable" compared to South Florida's "very unaffordable."
For instance, the Orlando, Kissimmee, Sanford area had a price-to-income ratio of 4.5, with a median home price of $400,000 and a median under-40 household income of $88,335. The Jacksonville area had a median home price of $400,000 as well, with a median under-40 household income of $90,067 and a price-to-income ratio of 4.4. The Tampa, St. Petersburg, Clearwater metro area had a price-to-income ratio of 4.3, with a median home price of $400,000 and a median under-40 household income of $93,098.
National trends in housing affordability
In 2019, 59% of metros with available data were very or somewhat affordable for under-40 households, according to the report, while the remaining 41% were either somewhat or very unaffordable. In 2024, 61% of metros were somewhat or very unaffordable, while 39% of metros were somewhat or very affordable.
The price-to-income ratio for households led by people under 40 rose to 3.5 in 2024 from 2.9 in 2019.
"The only other period when the price-to-income ratio for young persons reached this level was during the housing bubble of the mid-2000s," reads the report. "It peaked at 3.6 in 2006. Before 2000, it hovered around 2.5."
Least affordable, most affordable metro areas for under-40 households in 2024
Least affordable metro areas and their price-to-income ratios:
- Santa Maria-Santa Barbara, CA - 9.6
- San Luis Obispo-Paso Robles, CA - 9.2
- Chico, CA - 8.9
- Urban Honolulu, HI - 8.7
- Salinas, CA - 8.0
Most affordable metro areas and their price-to-income ratios
- Springfield, IL - 2.3
- Utica-Rome, NY - 2.4
- Canton-Massillon, OH - 2.5
- Cleveland, OH - 2.5
- Pittsburgh, PA - 2.5
Sarah Perkel is a South Florida Connect Reporter for the USA TODAY Network's Florida Connect team. You can get all of Florida’s best content directly in your inbox each weekday day by signing up for the free newsletter, Florida TODAY.
This article originally appeared on USA TODAY: Miami-Fort Lauderdale 'very unaffordable' for young homebuyers, survey shows
