Living In Florida Gets Very Affordable
Florida can be inexpensive, depending on where people live. The opposite is true in and around most of the large cities, particularly those on the coast.
A new study by Oxford Economics shows that Florida has become one of the more affordable states in the US overall.. The data is from its research titled “The home affordability crisis is here to stay.”
“Our housing affordability index (HAI) assesses a borrower’s income compared to the amount needed for housing payments on a median-priced home, with an HAI of 100 indicating parity. We follow the standard affordability guideline: a borrower provides a 20% down payment, and the sum of monthly mortgage payments, property taxes, and homeowners’ insurance must not surpass 28% of the borrower’s income,” the introduction reads.
Insurance Costs
West Virginia is the most affordable state by far, and California is the least affordable. Most of the least affordable states are in the South and Midwest. Florida is in the middle.
One reason Flrodia’s figure is not lower is the cost of home insurance. It has surged recently due to storms that have caused billions of dollars in damages. They become more violent and frequent most years.
Affordability is also based on demand. Florida home prices are falling, particularly in coastal areas, because many people cannot afford higher insurance rates.
Insurance rates have become such an issue that they can affect affordability by state.
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