By Gay Cororaton, MIAMI REALTORS Chief Economist
Despite significant price gains in Florida since 2019[1], owning and maintaining a home in Florida was still less expensive in 2022 compared to nationally. Owning a property in Florida was still less expensive than in states such as New York and California which account for the in-migration into Florida. Florida also has a lower real estate tax rate than nationally, according to MIAMI Realtors® analysis of the latest US Census Bureau’s 2022 American Community Survey data on selected monthly owner cost, real estate taxes paid, and median property value data.
Download the attached data report for details.
Selected monthly owner costs are the sum of mortgage and home equity loan payments, real estate taxes, insurance (fire, hazard, flood), utilities, condo fees and mobile home costs.[2] (Note that the selected costs do not include home maintenance costs, which can be 1% to 4% of the property value.[3])
- The annual median selected owner cost in 2022 in Florida was $20,952 ($21,300 nationally), with Florida at #21 on a ranking of selected housing costs on owner-occupied properties with a mortgage across all states from highest to lowest.
- The median real estate tax paid on owner-occupied units in Florida in 2022 was $2,765 ($3,237 nationally), with Florida at #30 on a ranking of the effective median real estate tax rate on owner-occupied properties with a mortgage from highest to lowest.
- In Miami-Dade, the annual selected owner cost on owner-occupied homes with a mortgage was more than nationally, at $26,796, but it was at #20 out of forty-seven counties with a population of at least one million[4]ranked from highest to lowest.
- In Miami-Dade, the median real estate tax paid on owner-occupied properties with a mortgage was also higher than nationally, at $3,985, but it was #21 out of forty-seven counties with a population of at least one million ranked from highest to lowest.
Florida: ranked #21 on housing expenses with a mortgage in 2022 (from highest to lowest)
The annual median selected owner cost in 2022 for owner-occupied units with a mortgage in Florida in 2022 was $20,952 ($21,300 nationally), landing Florida at #21 out of fifty states and the District of Columbia.
The District of Columbia had the highest annual selected owner costs ($34,716), followed by Hawaii ($32,196), California ($32,076), New Jersey ($30,636), Massachusetts ($29,868), and New York ($28,260). Owner costs were also higher in the states of Washington ($26,724) and Texas ($22,848) than in Florida.
The median property value[5] of owner-occupied units with a mortgage are the highest in Hawaii ($706,600), California ($738,000), and the District of Columbia ($706,600). In Florida, the median property value was about half of these values, at $376,600.
Comparing housing expenses against income, Florida homeowners with a mortgage spent lightly more of their household income (21.6%) than the typical homeowner with a mortgage (19.6%) , but less compared to homeowners in Hawaii (25.5%), California (23.8%), and New York (22.5%).
Miami-Dade County’s annual selected owner cost on owner-occupied homes with a mortgage was more than nationally, at $26,796. Housing expenses were lower in Broward County ($26,088) and Palm Beach County ($25,704).
However, these typical housing expenses are lower than in high-cost counties in New York and California, with Miami-Dade County at #20 when ranked on selected owner costs on owner-occupied units with a mortgage ($26,796) with a population of at least one million from highest to lowest.
The counties with the highest annualized selected owner costs for owner-occupied homes with a mortgage were Santa Clara County, California ($48,000) and New York County, New York ($47,628). Homeowners also spent more in King County, Washington ($35,760) where Seattle is located; Fairfax County, Virginia ($34,860) which is part of the DC Metro Area; Los Angeles, California ($34,548), and Travis County, Texas ($28,656) where Austin is located.
Median property values were at $1 million and over in Santa Clara, California ($1.5 million); New York County ($1.1 million); Alameda County, California ($1.13 million), and Orange County, California ($0.97 million). Property values were about half as expensive in Miami-Dade ($464,800), Broward ($434,400), and Palm Beach ($464,800).
However, housing costs are high in Miami-Dade compared to the income of household, at 26.3% compared to 19.6% nationally. However, households from other states typically have higher income than the median household income in Southeast Florida. The median household income of movers to Miami-Dade in 2021 was $229,300 according to MIAMI Realtors® analysis of IRS Migration data.[6]
Florida: ranked #30 on the effective median real estate tax rate in 2022 (from highest to lowest)
In 2022, owner-occupied units with a mortgage paid a median $2,765, or 0.73% of the median property value.[7]Nationally, the median real estate tax payment was $3,237, or 0.91% of the property values.
With a lower real estate tax rate than nationally, Florida ranked #30 on the median tax rate for properties with a mortgage ranked highest to lowest. Florida does not collect any property taxes, but local governments do assess real estate taxes at the county level.
The states with the highest median real estate tax rate were New Jersey (2.04%), (2%), Connecticut (1.77%), Texas (1.62%), and New Hampshire (1.61%). In these high-tax states, the median real estate tax was over $5,000.
In Miami-Dade County, the median real estate taxes paid on occupied units with a mortgage was higher than nationally at $3,985, an effective real estate tax rate of 0.86%.
However, among the forty-seven counties with a population of at least one million, Miami-Dade County was #21 on the effective median tax rate on owner-occupied units with a mortgage in 2022 ranked from highest to lowest.
Among the forty-seven counties with one million or more population, the highest effective median real estate tax rate was in Cuyahoga County, Ohio where Cleveland is located (1.97%, $3,960) on a median property value of $ 201,500 (about half the median property value of Miami-Dade).
The next highest effective median real estate tax rates among the forty-seven counties with one million or more population was Cook County, Illinois (1.88%, $5,940) on a median property value of $315,500.
The third highest effective median real estate tax rates among the forty-seven counties with one million or more population was Bexar County, Texas where San Antonio is located (1.82%, $5,185) on a median property value of $284,600.
What This Means for Realtor® Business
Florida’s lower housing expenses compared to states like California, New York, Washington, and Texas (where real estate taxes are higher) will continue to draw people from these states into Florida. Agents should continue to strengthen their referral database from these states. Agents should also stay abreast of developments that will affect flood insurance premiums as this will likely have the biggest impact on housing expenses in the future.
Download the attached data report for details.
[1] The median single-family median sales prices have increased 57% in Florida and 68% in Miami-Dade from August 2019-2023.
[2]See the American Community Survey and Puerto Rico Community Survey 2021 Subject Definitions (census.gov)
[3] How Much Should You Budget for Home Maintenance? (fool.com)
[4] Based on the population reported in the 2022 American Community Survey 1-year estimate
[5] The American Community Survey asks respondents for how much the property (lot plus home) would sell for if it were for sale. In August 2023, the median sales price of all home sales in Florida was $383,837.
[6] In-Migration Boosted South Florida Household Income by $16 Billion in 2021 – MIAMI REALTORS®
[7] Median real estate tax rate=Median real estate tax/median property value. I used properties with a mortgage to be consistent with the analysis on selected owner cost for properties with a mortgage.
