An annual report by the Harvard University found that housing burden in South Florida has improved over the period of time but it’s still considered as the worst amongst others in the country.
A data from Harvard’s Joint Center for Housing shows that nearly 35 percent of the households in Palm Beach, Miami-Dade and Broward counties spend more than 50 percent of their income on costs related to the house monthly.
However, expert advisers in the industry claim that the adequate amount of household spending should not be more than 30 percent.
The Harvard center has complied a data third year in a row which depicts households are severely burdened with costs.
According to Florida Housing Coalition, improvement has been seen over the period of time but South Florida still resides in an adverse situation when we talk about economical housing.
The housing issue can be related to high rents and lack of income growth. The thing is that incomes are not increasing but the rents are increasing every month. This has become a trend where no regulations are being made to monitor such phenomenal growth in the rates.
This leads to increased mortgages, interests, utilities, taxes, rental property insurance, homeowners insurance amongst various others. Additionally, homeowners can now easily qualify for mortgage because lenders are easily lending.
Moreover, young people are opting for rental homes rather than buying a home. This is because young people are more into doing jobs and changing jobs frequently. With changes in jobs and nominal income, homes on rent is what best fits the needs.
However, housing prices can increase to a certain extent and will eventually stabilize or decrease in the future and essentially salaries will increase along the way.
If you see, this is mostly an income related problem. If incomes increase, this problem won’t be present.
Feel free to consult us for your mortgage concerns, we are available around the clock for you! You can contact us at 877-509-3160.