Miami renters can’t afford starter homes

Miami renters earned 40% of the income they would need to afford a starter home, according to an analysis of October data by real estate website Point2Homes, Axios’ Sami Sparber writes.

• Researchers considered “starter homes” properties valued in the lower one-third of all available homes for sale.

Why it matters: Higher mortgage rates and housing costs are keeping homeownership out of reach for many first-time buyers.

By the numbers: Renters in Miami earned a household income of $36,532 on average, while the income needed to cover a mortgage was $92,227, according to the study.

• In September, a typical Miami starter home cost $356,643, the study found, analyzing Zillow data.

Zoom out: Following interest rate hikes this year, renter households in 15 of the 50 largest U.S. cities made less than half the income needed to buy one of the cheapest homes in town, per the analysis.

The big picture: Across the U.S., the share of first-time home buyers has shrunk to a record low, according to the National Association of Realtors.

• First-time buyers made up 26% of all buyers in 2022, down from 34% last year, the group found.

Go deeper: 3 reasons it’s getting harder for renters to buy