Study: People Are Willing To Spend More Of Their Income To Live In Miami Than Almost Anywhere Else In The World

Miami is one of the most expensive cities in the world to live in, with residents willing to spend significantly more for the privilege of living here, a new study shows.

The report was authored by noted Richard Florida and Steven Pedigo, as part of the Miami Urban Future Initiative, a joint effort between the Creative Class Group
and Florida International University.

Some of the findings include:

  • Not building enough new housing – Just 4% of housing units in Miami were constructed in 2010 or later, 19th lowest of any large metro. In contrast, Austin, Raleigh, and Houston have seen their housing stock increase more than 10 percent since 2010
  • Rising prices – Homes in the Miami area have appreciated more than 50 percent on average between 2014 and 2018, third highest of any metro area in the nation
  • Home prices – The median home in the area now costs $409,000 (11th highest) while the median rent is $2,095 (eighth highest)
  • Paying more to live here – residents are willing to spend more of their income to live here than almost anywhere else, with only Los Angeles ranking higher in the U.S. for percentage of income spent on housing. Miami is also seventh most expensive (income to housing cost) in the world.
  • Myth of unoccupied homes – Miami has a homeowner vacancy rate of less than 2 percent, which is within 1/10th of a percent of the national average

For the full report, click here (pdf).

 

 

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Anonymous

Title is misleading, a lot of people often arent in the position to be able to have the mobility they desire or live where they want and are simply living in circumstance.

Anonymous

I will disagree. We all have free will and if we really want something we can make it happen. I was sitting in St. Paul 11 years ago freezing my tail off when I saw a show on tv broadcasting live from Miami. It was at that moment I decided I would move down here. It took me close to 2 years to tie up loose ends, I left a great paying job for a mediocre one in Miami but in less than 5 years I was back to the same level I left behind. I love Miami, LOVE IT! Yes, it is super expensive but the weather, the ocean and just the vibe are worth every dollar of it.

Anonymous

Love your story. Mine is similar. This is paradise if you can make it.

Anonymous

and the people? they are the sweetest nicest people you will ever meet – just like back in Minnesota… ya betcha… uff da

Anonymous

AGREE

Anonymous

There are several considerations that haven’t been discussed here. For one thing…To find the cost to income ratio, you deal with a numerator and a denominator.
Housing cost/W-2 Income.
Usually, these dopey studies use median housing prices from county sales records, and W-2 income from the bureau of Labor Stats (or similar).
1. Miami is unique in that it is a city with a huge reaort/beach town component. St. Louis doesn’t have a Faena-like Penthouse sale for $50M on their books. Add up all those $8M+ sales and yiu can see how this might skew numbers.
2. Miami has a lot of big buyers who do not earn income in Miami. Exaggerating to make a point… think of thaty same Faena PH.
Housing Cost/W-2 Income or $50,000,000/$0.
Add up all those $8M+ sales of second home buyers and you can see how this might skew numbers.
3. There are an extrodinary number of small businesses and entrepreneurs in Miami. They get paid with K1s, not W2s.

Just put those factors together and you cram see why these stats are senseless.

Anonymous

Averages are skewed by numbers… Means are not (that’s why the statistical mean exists).

Also means produce boring data that no one finds interesting. Where as misleading and skewed averages produce great click-bait articles for blogs, votes for lying politicians, and other goodies for nefarious people.

Question is which did they use (I didn’t read the original article).

Anonymous

No. Mean and average are the same here. You are probably thinking about Median being different than mean

Anonymous

“willing to”

“privilege of living here”

LOL

Are we sure its simply not a byproduct of the living well beyond your means culture that is so prevalent in this city?

Anonymous

This headline is so far off from what Richard Florida’s report is actually about. Richard Florida is a pretentious academic pretending to be an expert on Miami just because he has a condo on the Beach and is affiliated with FIU, but he spends most of his time in Toronto looking at Miami from the outside. Don’t know about y’all, but I hardly doubt anyone who doesn’t live here full time, experience Miami on a mundane day-to-day basis, and isn’t of Hispanic origin has anything of substantive value to contribute on how to solve our issues because he probably doesn’t even REALLY know what our issues are. It’s easy to pick any large city and say displacement and affordability are their main issues, because newsflash folks: this is a byproduct of any booming major metropolitan area. This is hardly a Miami-only problem.

Anonymous

Your argument was decent until the “Hispanic origin” comment. Regardless of ethnicity people can experience living in Miami Dade county and its pros and cons. All of us locals can contribute to make it better not just those who fit into a data point majority.

Anonymous

Empty lots owned by county or cities should be given to Melo for they could build apartments to add more apartments to the market. Also i’m glad the article touched on thr Myth of unoccupied homes. That was last cycle, this cycle these units and houses are being rented out.

Anonymous

Given to Melo? funny

Anonymous

They have shown that they’re willing to develop regardless of the location and they do it quick.

Anonymous

How bout’ we change Miami’s name to Melomi.

Anonymous

Sarcasm can fly over some people’s heads

Anonymous

Lol good one!

Anonymous

Melo buildings a few mediocre buildings in the A&E District, and they’re worshiped like Gods? Unless this is just another one of those obligatory posts like complaining about no bike lanes.

POLO

Yeah, give it to Melo so hi can fill all those lots with ugly boxes!

Anonymous

For over twenty years we looked at nothing but ugly, empty, weed strewn lots in that area before Melo came along.

I guess vast desolation is what you prefer?

Anonymous

When prices revert to mean reversion (which they will) those with cash and those that were patient will have lots of good opportunities.

Anonymous

Real estate prices aren’t mean-reverting

Anonymous

Do you know how many people said that in 2014 and are kicking themselves now?

Anonymous

Home prices in South Florida are now about what they were nominally 14 years ago, not adjusted for inflation…not a ringing endorsement for a long term investment

Anonymous

^^^^Peter Zalewski trying to sound smart again.

Anonymous

“willing” or “have no other choice but to”?

Anonymous

I think the “unoccupied homes” refers specifically to luxury condos

Anonymous

My old boss called it the “Sunshine Tax”

Anonymous

I love our beautiful skyline, but to solve housing affordability for middle and lower-middle incomes, we need to increase the number of housing units on less expensive real estate, too.

Anonymous

PR spin from the industry? (smh)

Anonymous

Miami sucks!loaded with Latinos that are unwilling to learn English.

Anonymous

And yet we built this city to what it is today. Fuck off.

Anonymous

Why don’t you learn Spanish and stop being monolingual like everyone in Europe? Studies shows people who speak more languages are smarter and more creative.

Anonymous

First setenze rong . Second sentence write.

Anonymous

Miami is a great city, and truly has a dominat Latin culture duh. I believe Miami has come a long way from were it was 20 years ago. The problem is all people that come here and only hang with there culture and don’t learn english hold them self back in so many ways. The problem with Miami is that most people are on the edge. People have a self entitlement, I have witnessed first hand, the way alot of people in Miami treat people is what’s unfortunate! If people in Miami started honoring and respecting one another a spirit of excellence would arise and Miami could be more amazing than it is!

Anonymous

Gringo come mierda.