Miami has become one of the country’s hottest destinations for Americans looking to lower their tax bills and upgrade their lifestyles. But while looking to follow the lead of wealthy transplants and billionaires like Citadel CEO Ken Griffin snapping up the city’s luxe beachfront properties, experts say it’s becoming even harder for middle-class families to follow suit.
The numbers help explain why so many affluent Americans are making the move—and how feasible it is for others to buy into. Florida had attracted more wealth from domestic movers than any other state in 2023, according to a Realtor.com analysis of IRS migration data. And those newcomers were also the highest earners in the country, boasting an average annual income of $122,530, according to Miami Association of Realtors chief economist Gay Cororaton. For comparison, the average salary in the U.S. stands at just $64,505.
As new wealth moves in—and demand for Miami real estate continues to surge—its housing market has become increasingly out of reach for most buyers. Purchasing a house in the coastal city will run homebuyers around $652,110, on average, according to real-estate brokerage Redfin; meanwhile, the median sales price of a U.S. home sits at $398,771. To cover the mortgage of a typical Miami house, it’s estimated buyers will need an annual income of between $160,000 to $215,000, which puts the dream out of reach for 80% to 85% of Americans.
“You’ve got a wealth migration coming to South Florida that’s unprecedented, and they’re coming from all four corners of the United States,” Craig Studnicky, CEO of South Florida luxury real-estate firm ISG World, tells Fortune.
“We barely have enough housing to meet the middle and upper-middle classes moving here, but you also have this wealth migration that’s causing prices on the water to hit levels that are completely unpredictable.”
Billionaires are moving to Miami—and why buying there can be a pipedream for middle-income earners
It’s no secret billionaires are pouring into Miami, lured by its tax advantages, year-round sunshine, and trophy beach-side estates. The ISG World CEO says when Griffin bought a record-breaking $106.9 million waterfront mansion in Coconut Grove, it marked an explosive wave of wealth into the area. It was the first time a house in Miami sold for more than $100 million, and other ultra-wealthy like Amazon’s Jeff Bezos and ex-Google CEO Eric Schmidt also call the sunshine state home.
But Ryan McKeveny, managing director of equity research at U.S. housing consultancy Zelman, doesn’t believe the migration of billionaires to Miami has meaningfully raised home prices for others. The influx of the ultra-rich is only part of the story: Housing experts say the affordability crisis is driven by a chronic shortage of homes, years of under-building, and relentless demand from buyers across the income spectrum.
A shortfall of affordable properties for sale severely hampers the Miami dream for middle-class Americans. In Miami-Dade County, homes priced below $400,000 made up just 2% of active single-family listings as of early 2025, according to the Miami Association of Realtors, while 42% of listings were priced at $1 million or more. And only 14% of renter households in Southeast Florida could actually afford to buy a single-family home or condo, according to the group’s 2025 housing outlook. Even the area’s broader infrastructure has struggled to keep up: Studnicky says charter schools and private schools are running out of seats. He’s heard of some families being on the waitlist for more than a year trying to get their kids enrolled.
Studnicky points out another issue that’s tightening Miami’s housing market: Florida’s strict condo safety laws. Following the deadly 2021 collapse of Champlain Towers South, Florida passed legislation requiring tougher structural inspections for certain condominium and cooperative buildings that are three stories or higher and reach 30 years of age, leaving many owners with hefty special assessments that can cost up to hundreds of thousands of dollars. Now some buyers are dodging the bills by opting for newer buildings instead.
The real estate CEO adds that South Florida developers aren’t adding new inventory fast enough because high borrowing costs have made large-scale projects harder to finance. Many builders are delaying new construction until interest rates decline and they can better manage the cost of carrying multimillion-dollar loans. Miami-Dade County’s population grew by roughly 305,600 residents between 2010 and 2025, and county officials estimate the region needs just under 200,000 additional housing units to meet current renter demand alone.
“There’s not a lot of new construction being built at the affordable price point,” McKeveny tells Fortune, adding that when it comes to “single family home building, South Florida is not that big of a market, partly because it’s landlocked.” The researcher says southeast Florida is the 35th largest in terms of U.S. home-building communities, with fewer new, reasonably-priced single family houses hitting the market.
Experts say middle-class earners are better off renting
While the dream of owning a beachfront property in Miami is a long-shot for most, real-estate experts tell Fortune not all is doom and gloom for middle-class transplants looking to settle down in Miami. Studnicky says for those making a modest salary, renting is their best bet.
“For certain houses and for certain beautiful condos on the beach, it’s gotten kind of expensive. And I can’t argue with that…You can also rent,” the Studnicky continues. “If you’ve got an income of $75,000 a year, you can live very nicely in South Miami in a rental.”
McKeveny agrees renting is the most viable option for workers making less than six-figures, but the same could be said in other cities like New York, San Francisco, and Boston. Many wouldn’t even be able to put an offer down on a $650,000 house—unless they lower their price range.
“Unfortunately, the answer is yes…” the Zelman researcher says in reference to needing a six-figure salary to live comfortably in the area. “I would say, [with a] $100,000 [salary] you may not even be able to qualify for a mortgage for that. So you just might have to either look lower in price point or rent.”
That being said, real-estate experts say buyers may finally be gaining a bit more breathing room as the market holds steady. McKeveny predicts home prices are likely to follow a similar path, with values expected to remain flat or dip slightly over the next year. The market has already been moving in that direction, with inventory levels gradually normalizing. Miami’s housing supply is about 10% below 2019 levels, the researcher explains, compared with a 14% gap across the country’s 100 largest housing markets. The bayside city is holding out in the middle of the pack.
“I certainly don’t want to suggest that I’m overly optimistic about Miami, or honestly, anywhere,” McKeveny says. But, “from an actual transaction perspective, Miami is at the moment, at least outperforming the national metrics.”
