Miami may be known for its beautiful beaches, vibrant culture, and thriving nightlife—but behind the scenes, it’s also becoming increasingly difficult to afford for the average resident. According to a new report from RealtyHop, Miami has been ranked the second most unaffordable city in the United States, trailing only behind Los Angeles.
What makes this finding even more concerning is that it comes despite a decrease in rental prices. So why is housing still out of reach for many Miamians?
The Affordability Crisis in Numbers
The RealtyHop Housing Affordability Index is based on the percentage of a household’s income that goes toward housing costs. In Miami, the typical household needs to allocate a staggering 73.7% of their monthly income just to cover mortgage payments, property taxes, and other related costs.
Even though the average rent in Miami dropped by 2.25% in the last year, residents are still paying around $2,600 per month for rent. That’s well above what is considered affordable by industry standards, where housing should ideally not exceed 30% of a household’s income.
Why Lower Rent Doesn’t Equal Affordability
At first glance, the decline in rent sounds like good news—but for most Miami residents, it’s not nearly enough to tip the scale toward affordability. Here’s why:
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Wages haven’t kept pace with housing costs in Miami.
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Inflation and insurance premiums continue to rise, adding pressure to household budgets.
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High demand from remote workers and investors relocating from other states has pushed prices higher, especially in popular neighborhoods.
In short, while some landlords are adjusting prices slightly, the underlying factors keeping housing costs sky-high remain unaddressed.
Who Is This Impacting Most?
The affordability gap in Miami hits working-class families the hardest. With such a large portion of income going toward housing, there’s often little left for:
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Emergency savings
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Health care expenses
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Educational costs
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Basic quality-of-life needs
This financial pressure creates instability—not just for individuals, but for entire communities.
Other Cities Facing Similar Challenges
Miami isn’t alone in this trend. The top five most unaffordable cities in the U.S., according to RealtyHop, include:
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Los Angeles – 88.5% of income goes to housing
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Miami – 73.7%
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Newark, NJ – 68.8%
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New York City – 68.5%
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Hialeah, FL – 66.3%
Notably, Florida appears twice in the top five, highlighting a statewide housing affordability crisis.
What Can Be Done?
Solving Miami’s affordability problem will require more than temporary rent adjustments. Experts recommend a combination of:
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Increasing affordable housing development
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Boosting wages and job opportunities
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Expanding tenant protections
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Providing financial education and assistance programs
Without significant structural changes, Miami could become increasingly inaccessible to the very workers and families that keep the city running.
Final Thoughts
Miami may offer sunshine and opportunity, but for many residents, the rising cost of housing dims the dream of building a stable life there. As one of the most unaffordable cities in America, the city stands at a crossroads: adapt to meet the needs of its people, or risk pushing them out entirely.
If you’re a renter, homeowner, or property manager in the Miami area, staying informed is more important than ever. Knowing your rights, budgeting wisely, and engaging with local housing initiatives can help you navigate the challenges ahead.