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Fla. No. 7 for “Least Affordable Housing,” Mainly Due to Income

Affordability is calculated using a state’s median home price and median income. In the last decade, Fla. home prices went up 99.3%, but income only increased 20.8%.

WEST PALM BEACH, Fla. – Housing prices are up across the U.S., but income is not keeping pace. States such as Florida are feeling the pinch more than others, rendering the American Dream of homeownership out of reach for many, according to a report published Thursday by QuoteWizard.

Among that nation’s least affordable housing markets? Florida, which ranked No.7 on the list.

The median home price in the Sunshine State has risen 99.3% since 2012, the report showed, with the average home in Florida now costing $137,000 more than it did in 2012. Some areas, like Palm Beach County, have seen even greater increases in housing prices, rising 24% in the past year alone.

Median household income, however, has only risen 20.8%, the report showed. That figure was based on U.S. Census Bureau data from 2012 to 2019, which showed an increase from $46,071 to $55,660, and did not include adverse income changes due to the pandemic.

The report, based on statistics from the Census as well as real estate data firm Zillow, said that, despite the coronavirus pandemic, nationwide housing prices in 2020 alone rose 10.2%, largely because of the ability of employees to work remotely.

Of the states where housing costs rose the most, Florida ranked No. 10. Nevada, Idaho, Arizona, Washington and Utah took the top five spots.

Among the states where income rose fastest, Florida did not rank in the top 10. The top five were New York, Hawaii, Delaware, California and North Carolina.

The only states that saw wages rise faster than housing costs were Louisiana, Delaware and New York.

© 2021 The Palm Beach Post (West Palm Beach, Fla.). Distributed by Tribune Content Agency, LLC.