Miami hit by expensive commute and utilities on top of high housing costs
Miami was ranked as the third least affordable place to live, according to a Trulia study released today.
The study found that 69.2 percent of the median monthly middle-class income in Miami is spent on housing, commuting and utilities. Miami shares the top three with San Francisco (85.5 percent) and Los Angeles (74.5 percent). The U.S. Department of Housing and Urban Development (HUD) considers housing expenditures greater than 31 percent of income as unaffordable.
When looking at just utility and commuting costs, Miami was the most expensive city, with 16.9 percent of the median monthly middle-class income going towards commuting and utilities. The remaining 52.3 percent is spent on housing.
Cheap Housing, not Cheap Transportation
One trend the report found was that, while the top 10 most affordable markets saw either a decrease in costs, or at most, a minimal 0.7 percent increase, the most expensive housing markets continued to get less affordable, with middle-class homebuyers having to spend from 1.9 percent to a staggering 19.7 percent more since Sept. 2014.
Another trend was how in some cases, looking purely at housing costs can be deceptive. Areas such as Detroit, Birmingham and Philadelphia – all of which would normally be considered affordable thanks to low housing costs – are pushed over HUD’s 31 percent threshold by having some of the nation’s highest utility and commuting costs.
Meanwhile, San Francisco had the second cheapest utility and commuting cost thanks to its extensive public transportation and mild climate, making the 77 percent of monthly median income spent on the home easier to stomach, if only just.