There’s a lot to like about living in Miami. However, for Miami homeowners, the ability to save money isn’t one of them.
Miami homeowners have roughly the same cost of living as other major cities in America. However, there’s one area where they fall short: saving money. According to PropertyShark, Miami is the worst city in the country for homeowners trying to save.
The median household income for Miami homeowners is lower than in other major cities. According to Property Shark, Miami homeowners are left in the hole to the tune of $1,219 each month.
What does that mean? That means that according to Property Shark’s analysis, Miami homeowners aren’t earning enough to meet their household expenses.
Surprisingly, the markets where it IS easier for homeowners to save tend to be in some of the more expensive cities to live in such as Seattle, New York, and Los Angeles. The reason for this? While housing prices are high in these areas, the income needed to sustain them is also high.
Having $5,000 a month in housing costs isn’t that bad when you’re making $10,000 per month. In Miami, where residents are faced with a double whammy of high housing costs and low median income, the same isn’t true. So while home prices are not too far off from more expensive areas, wages are not keeping pace with the cost of living.
The Bottom Tier
Cities like Miami where homeowners are struggling to save money and get ahead include:
- New Orleans
Residents of these cities find themselves in a similar boat as Miami homeowners. High housing costs and wages that aren’t sufficient to cover expenses. As a result, homeowners in these cities find themselves with a monthly deficit.
Of course, your mileage may vary. Well-to-do residents of these cities may find themselves with a substantial surplus of funds. It all comes down to your personal income and your standard of living.
That’s where City vs City comes in. Our app uses your individual expenses as well as costs curated at the zip code level to determine your true cost of living. For example, let’s take a look at two of the bottom cities: Miami and Philadelphia.
If you were to move from one of these cities to the other: how would your cost of living change? City vs City seeks to answer the question of how much more (or less) you would need to earn in order to maintain the same standard and quality of living.
Let’s take a look
Your Mileage May Vary
Your housing costs would be cheaper in Philadelphia by roughly 23%. Of course, that doesn’t mean you’re better off in Philadelphia. At the end of the day, less than 1% in pretax income separates these two cities.
However, Philadelphia residents will pay, on average, more taxes than Miami homeowners. Your housing situation may alter that number depending upon whether you rent or own, have a mortgage, etc.
Cost of living varies widely from state to state and city to city. That’s why City vs City lets you compare costs before making a big decision like moving to another city. For more information, or to get started, visit Cityversus.com or download City vs City today.