The cost of living in Miami is an important element to calculate whether you’re moving to the Sunshine State or moving from another part of Florida. Miami has more to offer than most cities in Florida but the cost of living is a turnoff to some home buyers who consider moving there.
The cost of insurance, property taxes, or just day-to-day expenses is important to consider when putting together a budget for moving to Miami. With the help of an experienced local agent, you can set realistic expectations that help you calculate the cost of moving into a new home in the city.
Typical Home Prices in Miami in 2019
The real estate market in Miami is cold. This is great news for potential buyers because it means that sellers are getting fewer bids on even the most attractive oceanfront properties. A cold market is the best place to land a sweet deal as a buyer.
Talk to any real estate expert and they'll tell you that the best time to shop for a home is the beginning of the real estate season in the spring. However, in Miami, the real estate cycle fluctuates, with the spring and the fall offering some of the lowest in sale prices. In Miami, March and October are the two best months to be a buyer if you want to save money on the price of a home.
While the median listing price is around $475,000 in the city, that doesn’t mean you can’t haggle down for a better price on a great home in Miami. There’s never been a better time to get a great deal on a condo with a view or a family home for under $300,000 in Little Havana or another Miami neighborhood.
How Much Are Miami Property Taxes?
Property taxes in Miami will be calculated by the county based on the assessed value of your home. Even if you bought your home at a low price, the taxes will be based on what the county knows the property to be worth.
In Miami-Dade County, the median property tax is $2,756, paid every year, based on the median home value in the county. However, given that homes in Miami are worth more, a home at the median listing value would cost $4,845 a year in property taxes. (~200-300 words)
Explain how property taxes work in the target state/city and how would-be home buyers can calculate how much they must pay based on how much they’re planning to spend on a new home.
When calculating how much you can afford to pay on a mortgage every year, consider the costs of property taxes. Over the course of a 20-year mortgage, that could be more than $90,000 a year you’ll be paying on top of the sale price.
If you want to learn more about how real estate taxes are calculated in this state, check out our guide.
Average Homeowners Insurance in Miami
In a city that’s so close to the water, there’s a lot to worry about with the changing climate and the increase in natural disasters. Miami is just over six feet above sea level. For comparison, New York City, which is also right on the water, is just 30 feet above sea level.
You’ll find that homeowners insurance in Miami is far higher than it is in other parts of the country. In fact, a policy for a median value home will cost you an average of more than $18,000 a year. This will entitle you to a $1,000 deductible and $100,000 in liability insurance.
Of all the potential living expenses to expect as a new homeowner, this is important to consider. Given that it could be nearly as much as you pay on your mortgage in a year, this is a number to factor in when you’re buying a home in the city. Talk to an experienced local realtor who can help you navigate just how much it costs to insure your home.
Common Home Maintenance and Repair Costs in Miami
Miami a beautiful city throughout most of the year, but tropical storms hit it throughout part of the year. When this happens, your roof, basement, and the exterior of your house can take some serious damage. If you’re not prepared for the costs associated with this, you could feel buried under the costs.
If you have to renovate in your basement, expect to have to pay several thousands of dollars out of pocket. Since most of the decay of a basement is caused by natural shiftings rather than catastrophic incidents, you likely must pay for this out of pocket. Repairs to your basement will cost you an average of $2,900.
In Miami, it stays hot throughout most of the year, meaning you’ll need a robust cooling or HVAC system in your home. Even if you keep the ducts clear and the filters clean, you still must pay around $350 each time a specialist has to come to look.
Other Costs of Living in Miami to Consider
When buying a home in Miami, it’s important to think about all the costs that have nothing to do with the price of your home. While there’s a train in the city, few people take it, meaning you will need to have a car and pay for maintenance. If you live downtown, you might even have to pay to park your car.
However, you live outside of downtown, you will want to keep your yard looking good. When you buy a home with a lovely palm in the front yard, you must keep your yard clear of the fronds that fall.
During the hotter months, you also must be careful about your water and your air conditioning bills. Unexpected bills will cause sticker shock in northerners who’ve moved to south Florida.
Before you settle on a home, talk to a local real estate agent to go over some costs you should expect when buying a Miami home.
Find a Top Miami Real Estate Agent
The cost of living in Miami can be mitigated by connecting with an experienced local realtor. Pairing up with one of our Clever Partner Agents can give you access to a home buyer rebate of $1,000 or 1% of any home over the price of $500,000. This will help you cover closing fees and any other costs that come with buying a home.
Clever partners with only the top agents in Miami to help clients save money throughout the home buying process. Contact us today to connect with a Partner Agent who knows which neighborhoods are best for your budget.