This is how much you need to make to afford a 'typical' home in Orlando, according to a new report
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ORLANDO, Fla. - As housing prices soar and mortgage rates continue to rise, owning a home in Orlando – and much of Florida – is becoming an elusive dream for many.
A new report from real estate company Redfin is breaking down just how much you need to make a year to be able to afford a "typical" home in the U.S., as well as in other cities across the country.
American homeowners need to make at least $114,627 to afford a median-priced home, according to the report. That's a 15% increase from last year and up more than 50% since the start of the COVID-19 pandemic, making it the "highest annual income necessary to afford a home on record," Redfin said.
Redfin used data comparing monthly mortgage payments for homebuyers in August 2022 vs. August 2023 while adjusting the numbers for inflation.
"In a homebuyer’s ideal world, rising mortgage rates would push demand and home prices down enough to make up for high interest payments. But that’s not what’s happening now: Although new listings are ticking up slightly, inventory is still near record lows as homeowners hang onto their low mortgage rates–and that’s propping up prices," said Redfin Economics Research Lead Chen Zhao. "Buyers–particularly first-timers–who are committed to getting into a home now should think outside the box. Consider a condo or townhouse, which are less expensive than a single-family home, and/or consider moving to a more affordable part of the country, or a more affordable suburb."
How much you need to make to afford a median-priced home in Orlando
In Orlando, you need to make at least $108,597 to afford a median-priced home, according to Redfin. That's an 18% increase from last year.
The median monthly mortgage payment is $2,715, while the average median home-sale price is listed at $398,175.
Compared to the other eight Florida cities on the list, Orlando is right in the middle at No. 5. Only Miami, West Palm Beach, North Port and Fort Lauderdale require a higher annual income to afford a home, the report says.
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How much you need to make to afford a median-priced home in Florida
Here's a look at the annual income required to afford a typical home in different Florida cities, according to Redfin's report:
- Cape Coral: $108,249
- Fort Lauderdale: $114,549
- Jacksonville: $99,549
- Lakeland: $88,639
- Miami: $143,187
- North Port: $123,888
- Tampa: $103,613
- West Palm Beach: $125,459
Click here to read the full report.