The Most Expensive Housing Market in the United States

The Most Expensive Housing Market in the United States

Say goodbye to San Francisco, NYC, and Boston’s Seaport District… there’s a brand new city wearing the crown for the Most Expensive Housing Market in the United States.

According to a RealtyHop report, Miami has entered the top spot for the most expensive housing market in the United States, surpassing New York.

Jump-started by the influx of out-of-state buyers and renters, home prices in Miami have soared during the pandemic, while wages have not increased at the same rate.

According to RealtyHop’s Housing Affordability Index for February 2022, any given household in Miami would have to contribute over 78% of their income towards homeownership costs. This number is based on the median home price of $589,000 and a projected median household income of $43,401. 

Last month, New York became the second least affordable city in America. Similar to Miami, New York homeowners spent just about 78% of their income on homeownership costs including property taxes and mortgage payments. This is based on a median household income of $68,259 and a median household price of $970,000.

Los Angeles currently ranks third on the list of the most expensive housing markets in the country. With a median household income of $68,733 and a median home price of $925,000, households can expect to spend about 74.2% of their annual income on housing.

As a best practice and to help eliminate the friction of cost-burdened housing, homeowners should look to spend no more than 30% of their income on housing costs. 

According to Zumper’s State of the American Renter’s Report, rent rates across the nation have increased 11.6% from where they were just a year ago. Strong demand coupled with limited supply has been the catalyst for this increase.

Last year, Miami ranked 16th in the country for cities with the biggest increases in median home asking prices, according to RealtyHop. The median price rose 17% in 2021 to $580,000. Austin experienced the biggest increase, up nearly 28% to $535,000.

Read More