According to a study released Thursday, South Florida housing is less expensive than it used to be, but even after drastic price drops, home ownership remains out of reach for many skilled workers.
According to the study by the Center for Housing Policy, a Washington-based research group, Miami-Dade fell from the 34th-most-expensive U.S. housing market to 40th, from 2007 to 2008; the county was tied with Chicago, Salt Lake City, Tacoma, Wash., and Provo, Utah, for 40th place.
All five areas had a median
home price of about $225,000.
Broward fell more harshly, from 45th to 80th place tying Las Vegas, with a median home price of $178,000.
Provided by the National Association of Home Builders, the study used data for new and existing homes so the figures differ somewhat from those reported by the Florida Association of Realtors, especially for Broward.
South Florida looks much worse, when local incomes are taken into account, according to the study. In Miami-Dade, for instance, assuming a 10% down payment a home buyer would need to earn $73,104 to buy the median house.
But according to the study the average elementary school teacher in the county earns just $49,000 and the average police officer just $48,000, putting the house out of reach for them.
Researchers at the Metropolitan Center at Florida International University have come to similar conclusions in studies published over the past few years.
A decade ago, police officers, teachers, nurses and similar professionals would not have found a home out of reach. According to the Realtors group, the median home in Miami-Dade or Broward cost around $135,000 in 1999.
During the height of the boom, the median peaked above $370,000 before falling to around $205,000 in Miami-Dade and $220,000 in Broward this March, the most recent month for which numbers are available.
Ned Murray, associate director of the Metropolitan Center, said these prices remain out of reach for many buyers.
''The drop is significant,'' Murray said. But ``it still doesn't address the housing affordability needs of the working family here in South Florida.''
Murray added that the new numbers don't consider the location of condition of available homes. Many lower-priced properties may require significant repairs or be in undesireable neighborhoods, he said.
Contributed by MLR Realty
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