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Miami is the least affordable place to live in the US as rent prices rocket to $3,000 per month

Miami is now the least affordable place to live in the US, with median rents now rivaling New York City and San Francisco, new real estate data shows.

Prices have soared to almost $3,000 a month this year amid a mass migration of wealthy residents from the Big Apple and Silicon Valley during the pandemic.

Uploaded remote workers continue to tap into the mainstream market and head to the Sunshine State, but local wages have yet to catch up.

Miami’s median monthly rent – currently $2,930 – requires a whopping 60 percent of typical renter income, nearly 14 percent higher than Los Angeles, the city with the second-highest burden on renters, at 46 percent and a median rent of $2,993, according to realtor.com.

The number serves as nearly double the amount deemed affordable for the average home by the real estate tracker, who said in its March report that the median income of people in Miami calls for a monthly rental price of just $1,476.

That figure is similar in some other cities in the state, such as Tampa and Orlando, which require renters to fork out more than 45 percent and 37 percent of their monthly income before taxes, respectively.

Miami is now the least affordable place to live in the United States, new real estate data shows

Miami is now the least affordable place to live in the United States, new real estate data shows

According to Realtor.com, Miami's median monthly rent (currently $2,930) now rivals that of New York and San Francisco, demanding a whopping 60 percent of a typical renter's income, nearly 14 percent higher than the of Los Angeles, the city that pushes the second highest burden on renters, with 46 percent and a median rent of $2,993

According to Realtor.com, Miami’s median monthly rent (currently $2,930) now rivals that of New York and San Francisco, demanding a whopping 60 percent of a typical renter’s income, nearly 14 percent higher than the of Los Angeles, the city that pushes the second highest burden on renters, with 46 percent and a median rent of $2,993

Housing policy experts often state that rents are no longer considered affordable after passing the 30 percent mark.

In contrast, New Yorkers pay a median rent of $2,725, which represents 40 percent of a renter’s income, the report found, while the standard in tech-rich San Francisco is $2,970, barely reaching the mark unaffordable with 30 percent, according to the data. shows

Florida’s rate hike, experts say, comes as rents have also risen sharply across the country, with Americans flocking back to a market that was hopelessly hampered during the pandemic.

But according to Danielle Hale, chief economist at Realtor.com, migrant tech workers lured by the state’s lack of income taxes and low property taxes have caused Florida’s real estate market to boom at a rate unheard of. go anywhere else.

“For migrant tech workers leaving San Francisco, New York, Chicago, being able to save thousands of dollars each year is still a compelling factor … to relocate,” Boyd said. CBS News last week of your company’s report, which looked at rents through February.

Financial benefits for remote workers seeking less expensive digs have seen the state’s population boom since the pandemic, growing by more than 300,000 between 2020 and 2021, state statistics show, a faster rate than any state. except Texas, which has seen similar growth. pilgrimage of wealthy professionals.

What’s more, a series of recent high-profile corporate moves to Florida, by companies like Goldman Sachs, Elliott Management and Virtu Financial, Boyd said, have further bolstered the city’s appeal.

Migrant tech workers lured by the state's lack of income taxes and low property taxes have caused Florida's housing market to boom at a rate seen nowhere else.

Migrant tech workers lured by the state’s lack of income taxes and low property taxes have caused Florida’s housing market to boom at a rate seen nowhere else.

According to Boyd, the number of inquiries his company receives from companies interested in moving to Miami after allowing more remote work along with a reduced in-person work model has grown exponentially compared to before the pandemic.

“Based on what our customers tell us, that hybrid model is here to stay.”

Real estate data shows that a significant portion of Florida’s fast-booming real estate market is made up of out-of-state buyers.

Redfin, a real estate brokerage, published a report this month showing that a record number of homebuyers looked for a home outside of the city in which they lived, with Miami being the most sought after destination by users.

According to the company’s report, 32.3 percent of users were looking to move to a different metro area in the first quarter of 2022, up from 31.5 percent a year ago and 26 percent in 2019.

The company cited factors such as soaring home prices, rising mortgage rates and inflation, which hit 8.5 percent in March, the highest in 41 years, as reasons families have searched for more affordable places to live. They also note that the ability to work remotely has given people more freedom to move around.

The analysis also looked at a sample of about two million Redfin users who searched for homes in more than 100 metropolitan areas in the first quarter, highlighting those they considered serious buyers.

The top cities with residents looking to leave, according to the data, were San Francisco, Los Angeles and New York, all employment and technology hubs where workers earn notably more than others across the country.

San Francisco, Los Angeles, New York, Washington DC and Seattle topped the list of cities people are looking to move to, with Miami leading the destinations.

San Francisco, Los Angeles, New York, Washington DC and Seattle topped the list of cities people are looking to move to, with Miami leading the destinations.

Real estate data shows that a significant portion of Florida's fast-booming real estate market is made up of out-of-state buyers.

Real estate data shows that a significant portion of Florida’s fast-booming real estate market is made up of out-of-state buyers.

Real estate experts cited factors including skyrocketing home prices, rising mortgage rates and inflation, which hit a 41-year high of 8.5 percent in March (pictured) , for the reasons families have sought a more affordable place to live.

Real estate experts cited factors including skyrocketing home prices, rising mortgage rates and inflation, which hit a 41-year high of 8.5 percent in March (pictured) , for the reasons families have sought a more affordable place to live.

Notably, three of the top six cities on the high-traffic list were in the state of Florida, with Miami topping the list.

Redfin suggests that ‘sunny and relatively affordable’ areas are often the most popular places to move to, but that searches for Florida’s largest cities have skyrocketed. Miami has six times as many searches for people to move as it did two years ago, while Tampa’s numbers have tripled since before the pandemic.

“For executives with deep pockets, they’re playing with the house money because there are still bargains in Palm Beach County, Broward County and Miami-Dade, compared to Bay Area prices,” says Boyd. about the phenomenon.

‘People are offering more homes in Broward County and Palm Beach County for millions of dollars. It is a routine event.

While Florida is becoming more attractive to foreigners across the country, the recent surge has left many long-time residents, especially low-paid service industry workers and older residents, struggling to keep up with rapidly rising rates.

Those pressures have also been compounded by the city’s ongoing inflation crisis, as well as the lingering effects of the pandemic.

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