Miami’s Dubious Distinction: Least Affordable City for the Middle Class

Russian oligarchs and Brazilian expats may be its most prominent residents, but Miami does have a middle-class. But a new study shows they aren't exactly thriving. In fact, Miami is the toughest city in the nation to be a middle-class resident.

2 minute read

October 22, 2012, 8:00 AM PDT

By Erica Gutiérrez


Although a new study [PDF] from the Center for Housing Policy and the Center for Neighborhood Technology paints a prettier picture of housing affordability in some of America's most notoriously expensive cities, its results are likely to nauseate Miami's policy makers. So, what makes The Magic City so out of touch with its middle-income citizens?

It's a combination of housing and transportation costs, along with stagnant incomes, finds Jeffrey Lubell, executive director of the Center for Housing Policy. According to the center's recent report, Losing Ground, the combined nationwide costs of housing and transportation have risen by 44 percent since 2000. In Miami, that number is even higher, jumping by 47 percent, whereas salaries have only increased by 21 percent. What's more, "[m]iddle-class households in Dade spend a staggering 72 percent of their income on transportation and housing costs, the study found."

Miami has also seen an increase in demand for rentals, but an insufficient supply, resulting in raised rents. And for homeowners, the situation is no better, Lubell asserts, "households with blemished credit and existing homeowners with underwater mortgages have been unable to take advantage of lower home prices." Finally, in terms of transportation, Miami is highly car-dependent, so driving expenses such as gas, insurance and repairs, exacerbate cost of living issues.

Author Tim Elfrink finds some comic relief in this bleak situation, encouraging middle-class families to seek out fame in true Miami style. He concludes, "All you need to do is become famous via an Internet sex tape, star in an endless series of reality television shows, make billions of dollars and -- viola! -- Miami becomes a very easy place to live indeed."

Thursday, October 18, 2012 in New Times Miami Blog

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

July 11 - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

July 11 - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

July 11 - Cities Today