South Florida ranks at the nation's bottom for offering the American Dream to the middle class, when it comes to buying a house, according to a new study released Wednesday.
South Florida comes in 22nd of the 25 largest U.S. metro areas for a median-income family's ability to buy a home, reported a subsidiary of North Palm Beach-based Bankrate.com.
The median household income in Broward, Palm Beach and Miami-Dade counties is 13 percent short of the income required to buy a median-priced home here, the Interest.com study found.
Only median-income families in San Diego, New York and San Francisco fared worse, with their incomes falling shorter in buying a home that is in the middle of the region's selling prices.
"Despite all of the talk about how homes are more affordable than they have been in decades, buying a home is still a big challenge for many American households," Mike Sante, managing editor of Interest.com., said in a statement. "Dealing with rising expenses and stagnant wages is a struggle. Even after years of declining home prices and record-low mortgage rates, median-income households are unable to afford a median-priced home in nearly half of the metropolitan areas that we looked at."
The study looked at how much the media household income in a metro area surpassed or fell short of the income required to buy a median-price in the area.
The study figured in a 20 percent down payment on a 30-year fixed rate mortgage. It also calculated median property taxes, average homeowners insurance cost and average household debt.
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