Print This Article			Print All Articles			Email the Editor

Report Studies Housing Affordability Issues in Florida

“Median incomes generally increased faster than median house prices over the 1990s time period,” says “The State of Florida’s Housing 2003,” which was revised in February. However, unemployment in Florida increased from 3.6% in January 2000 to 5.3% in January 2003,” resulting in a “bare increase” in per capita personal income from $28,366 in 2000 to $29,596 in 2002.

Over the last five years, the report says, house prices have increased by almost 4% over the rate of inflation, which is “higher than during any other five-year period we’ve recorded, including the high appreciation period of the 1970s.” (The report relies on a more elaborate method of determining price appreciation than calculating annual changes in median sales prices.)

According to preliminary estimates, house prices in Florida have increased 8% annually since 2000, the report says, at a time when general inflation averaged 1.97% annually.

In the meantime, housing affordability has worsened significantly among the state’s low-income renters.

In 2002, the report estimates that 809,000 of the state’s 1.9 million renter households — or 41.6% — paid more than 30% of their income for housing, and 361,000 of those — or almost 45% — paid more than half of their income on rent. Most of those paying more than 50% had incomes below 50% of their area’s median income.

Renters who were paying more than 30% of their incomes on rent were concentrated in Miami-Dade, Broward and Palm Beach Counties and the Tampa Bay metropolitan area. Together, they accounted for 53% of what the report considers “cost-burdened” renters.

go to top