Miami' s mortgage payment hike could stall house hunting - Axios MiamiLog InLog InAxios Miami is an Axios company.

Miami' s mortgage payment hike could stall house hunting

Illustration: Brendan Lynch/Axios Despite signs of , prospective buyers putting off looking for a home until prices get more affordable probably have a long wait. What's happening: The typical homebuyer in metro Miami-Fort Lauderdale is spending 44% of their household income on mortgage payments, according to a .That's well above the national average of 30%, which is also the threshold at which buyers are considered "cost burdened" by housing costs, Zillow notes. From 2005 to 2021, homeowners in the Miami-Fort Lauderdale metro area have spent much less of their income — about 30% on average — on mortgage payments than they do now, according to Zillow. Why it matters: For mortgage affordability to return to pre-2022 levels, South Florida home values would have to go down by 33%, which Zillow analysts said is highly unlikely. Home values in greater Miami have risen 26% year over year, and Zillow predicts home values nationwide will . Another mind-blowing stat: The typical mortgage payment in the Miami-Fort Lauderdale metro area is $2,452 a month, according to Zillow. That's almost double the figure in September 2021, when it was $1,248. Miami-Fort Lauderdale has the third-highest annual increase in mortgage payments among the top 100 metro areas, per Zillow. What they're saying: "The next several years appear set up for affordability to be a major challenge for home buyers," said Zillow senior economist Nicole Bachaud in a press release. "Inventory remains tight, real income growth is dismal, mortgage rates show no signs of dropping, and there is plenty of pent-up demand ready to bid prices back up if they reach a level would-be buyers can once again afford."Data: Zillow; Chart: Nicki Camberg/Axios Get more local stories in your inbox with .Subscribe Support local journalism by becoming a member.

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