A new study by vacation rental marketplace FloridaRentals.com identified the states where housing has become increasingly disconnected from local income levels.
Florida ranked 24th in housing affordability decline, with nearly 2% longer payoff time, now 20.79 years.
The data analyzed shows that payoff times remain high in many states, but the significant variation across regions reveals a complex national housing picture. The analysis calculated how long it would take residents to pay off a median-priced home if dedicating 25% of their income to housing costs.
Florida’s findings:
Florida’s housing market continues to pose challenges for buyers, with affordability slipping further in 2023. The Sunshine State now requires 20.79 years to pay off a median-priced home valued at $381,000 – a 1.71% increase from 2022.
Median household income rose slightly to $73,311, but the gain was not enough to keep pace with rising home values, pushing affordability further out of reach for many families.
Despite Florida’s strong population growth and continued demand for housing, the widening gap between incomes and property prices suggests that many households may find renting a more practical option in the near term.
Georgia experienced the fourth-highest decline in affordability. Peach State residents now need 17.31 years to pay off a median-priced home, representing a 6% increase from the previous year’s figure.
Commenting on the study, a spokesperson from FloridaRentals.com said, “These results reveal the complex housing affordability picture across America. While most states are seeing housing costs outpace income growth, we’re also observing interesting regional variations. The Northeast and Southeast regions are experiencing some of the sharpest declines in affordability, while several Western states are actually seeing improvements.
“For potential homebuyers, these trends matter. In states where the affordability gap is widening rapidly, many households might find renting remains a more practical option until incomes catch up with housing costs or market corrections occur.”
