Florida Real Estate Gets Expensive
One way to measure real estate affordability is to count the number of days in a month it takes to cover housing costs. Realtor.com has broken down the figures. The basic assumptions are that the mortgage is for 30 years, the interest rate is 6.55%, and the down payment is 20%. It also assumes that the median home price in the US is $412,000. The figures used were from January.
Housing has become more expensive in the last half-decade for two reasons. The first is that the median home price has risen as much as $100,000. The other is that mortgage rates at the start of this period were as low as 3%. “Home prices have significantly outpaced wage growth in recent years, widening the gap between income and housing affordability,” said Realtor.com senior economic research analyst Hannah Jones.
Hurricanes Will Get Worse
According to meteorologists, there is some evidence that people started to leave Florida because hurricanes have caused extensive damage and are likely to intensify. Residential insurance companies have hiked rates and, in some cases, doubled.
The study shows that paying for a mortgage in Florida takes 11 days of work. In other hurricane-prone areas, that figure is lower. Louisiana is the most affordable state in the hurricane region, at 8 days, and California is the most expensive at 15 days.
Florida real estate should get less expensive as people move to safer places.
More from ClimateCrisis 247
- New Jersey Wildfire Is Largest In Two Decades
- Air In America’s Most Polluted City Is Dangerous
- Huge Wildfire Hits New Jersey Highways
- World’s Rich Supply Is Being Poisoned
