Miami ranked least affordable city for renters in new study as housing costs continue to climb

Edgar Rocha Jr. says the Miami neighborhood where he lives is far from luxurious.

"It's a cheap neighborhood, sometimes violent people," Rocha said. "I've been living here for a year, and I saw three fights."

Still, he pays $1,500 a month in rent for a studio apartment and is now considering moving out of state.

"It's an elite city for people with money," he said. "If you're a DoorDash or delivery guy, you're not going to make it here."  

According to Zillow, the average rent in Miami is about $3,100 per month, though the estimate does not distinguish between apartment sizes or property types.  

A recent WalletHub analysis ranked Miami last for rent affordability among 182 U.S. cities studied.  

"We have much higher costs of rent and housing than the national average," said Dr. Albert Williams, chair of the Finance and Economics Department at Nova Southeastern University's H. Wayne Huizenga College of Business and Entrepreneurship. "About 20% to 30% higher."  

Williams said financial experts typically recommend people spend about one-third of their income on housing. But with rising rent prices and relatively low average salaries in Florida, many residents are spending closer to half their income just to keep a roof over their heads.  

"Imagine you make $60,000 a year, and you have to spend $30,000 on housing just to live," Williams said. "That's a lot because you still need food, electricity and all the other necessities. Before you realize it, you're not saving money, and people start relying more on credit cards."  

Williams said there is no simple solution. He believes workers need higher wages, residents should focus more on saving and investing, and government leaders could also play a role in addressing the affordability crisis.  

"To live comfortably, they put the number at around $100,000 a year, give or take," Williams said. "That's not even close to what the typical Floridian makes, which is around $50,000 to $60,000."  

The affordability challenges extend beyond Miami. No Florida city ranked inside WalletHub's top 100 most affordable rental markets. Fort Lauderdale ranked 155th, while Pembroke Pines came in at 174th.  

The study found Bismarck, North Dakota, was the nation's most affordable city for renters.