Miamians Struggle to Afford Their City as Thousands of New Residents Move In

When you think of Miami, the first images that pop into your head might be of beaches, sun, parties, celebrities, and a thriving cultural scene in a global city whose population is 70% Latino. However, life is no Real Housewives episode for many 305 residents, as their city has become one of the least affordable in the United States.

During the COVID-19 epidemic, a widespread media narrative developed that Miami experienced a massive influx of high-skilled workers who realized that, if they could work remotely, they might as well do it from somewhere warm. However, Miami-Dade County actually lost 28,000 people over that two-year period because, for every coder and venture capitalist who moved in, many more lower-wage workers were forced out due to a higher cost of living.

Skyrocketing housing costs were a huge driver of Miami’s population loss. According to many rankings, Miami’s housing market is either the least or second-least affordable in the country. Half of Miami-Dade County’s households are rent-burdened, meaning that they pay more than 30% of their total incomes to cover their rent or mortgages. Black and Latino households are hardest hit, as 48% of them are rent burdened compared to 38% to 41% of members of other communities.

Miami-Dade County has a gap of more than 90,000 affordable housing units. Much of this stems from developers’ prioritization of luxury and other more expensive housing units for recently arrived higher net worth individuals from other parts of the country. Unfortunately, Miami’s service economy is not keeping track with these developments because its 21 fastest-growing economic sectors only offer a median salary of less than $19 an hour.