A recent study by real estate data company ATTOM indicates that purchasing a home in the Port St. Lucie metropolitan area is less affordable than in many parts of South Florida. Despite typically lower median home prices, higher wages in South Florida make homeownership more financially attainable for its residents.
Key Takeaways
- Housing is considered "seriously unaffordable" when costs exceed 43% of income.
- In St. Lucie County, 45.8% of income is needed for a median-priced home.
- In Martin County, this figure rises to 46.3%.
- South Florida counties like Palm Beach (40.5%), Broward (39.9%), and Miami-Dade (43.6%) show better affordability metrics.
Affordability Discrepancies Explained
ATTOM’s report highlights that while home prices in Port St. Lucie might be lower, the disparity in local wages means residents must allocate a larger portion of their income to housing. Rob Barber, CEO of ATTOM, stated that "Housing affordability in the Port St. Lucie (Metropolitan Statistical Area) remains strained as home prices, though slightly declining, still require incomes far above local wage levels."
For instance, a worker in St. Lucie County earning an average income would need to dedicate 45.8% of their monthly earnings to cover housing costs for a median-priced single-family home. Martin County presents an even steeper challenge, requiring 46.3% of income.
South Florida’s Relative Affordability
In contrast, South Florida counties demonstrate a more favorable affordability picture. Palm Beach County requires 40.5% of income, Broward County needs 39.9%, and Miami-Dade County demands 43.6%. Barber noted, "If defining affordability by the percentage of income required to purchase a home, then the Port St. Lucie MSA is less affordable than parts of South Florida. Buyers are more financially stretched despite lower home prices."
Broader Florida Housing Market Trends
The study also identified Duval County as Florida’s most affordable for homeownership, requiring only 23.7% of local income for housing costs. Conversely, Collier County is the least affordable, necessitating 60.7% of income.
Barber further commented on the statewide situation: "Housing affordability in Florida continues to worsen as elevated home prices, rising ownership costs, higher homeowners insurance premiums and mortgage rate volatility keep pressure on buyers despite modest wage gains."
Most Florida counties do not meet the benchmark for affordable housing, defined as total housing costs below 30% of income. Many, including St. Lucie and Martin counties, surpass the threshold for "seriously unaffordable" housing, where costs exceed 43% of income.
Historical Affordability
ATTOM’s analysis, which reviewed median-priced homes and condos, found that housing affordability has declined in 97% of U.S. counties compared to historical averages. For the Treasure Coast counties, housing was most affordable in early 2012. During that period, St. Lucie County required 15% of income, Martin County needed 21.2%, and Indian River County required 17.1%.
"Elevated mortgage rates along with rising taxes and insurance costs continue to keep affordability well below historical norms," Barber concluded.
Sources
- Port St. Lucie homes less affordable than South Florida, study says, Treasure Coast News.