Miami Homeownership Ranks Among Lowest in U.S., Redfin Study Finds

When people talk about housing affordability in Miami, the challenge is often framed in terms of rent being too high. However, a recent Redfin study reveals something more striking: Miami ranks relatively low among U.S. metropolitan areas in homeownership rates. In some ways, the city is more of a “renters’ town” than many might expect.

Miami’s Homeownership Ranking in 2025

Redfin’s Q2 2025 homeownership study paints a clear picture: Miami’s homeownership rate is just 57.5%, meaning more than 42% of households rent. By comparison, the national homeownership rate stands at 65%.

Among the 75 largest U.S. metro areas studied, Miami ranks near the bottom. While not the lowest, Miami is grouped with other expensive, high-demand coastal cities where homeownership is out of reach for many residents.

Cities With Even Lower Homeownership Than Miami

Despite Miami’s affordability challenges, several major metros report even lower rates of homeownership:

• Los Angeles, CA – 46.4%
• New York, NY – 49.4%
• San Francisco, CA – 54.0%
• San Jose, CA – 53.9%

Among these, Los Angeles has the lowest homeownership rate of any major U.S. city, with fewer than half of households owning their home.

Why Homeownership Is So Difficult in Miami

Miami’s relatively low homeownership rate is the result of several overlapping pressures:

• High Home Prices

The national median home price reached $443,867 in July 2025; however, in Miami, prices frequently surpass this benchmark. Many local neighborhoods — especially coastal and luxury markets — are priced far beyond what middle-class families can afford.

• Rising Mortgage Rates

With mortgage rates hovering around 6.5%, even qualified buyers face steep monthly payments. Higher rates reduce affordability and trap more households in long-term renting.

• Wage and Affordability Gap

Local wages haven’t kept pace with housing costs. Many Miami residents work in service-based industries, such as hospitality and retail, where incomes often fall well below what’s needed to afford a mortgage comfortably.

• Insurance Costs and Climate Risk

Miami’s property insurance crisis adds another layer of financial burden. Homeowners pay thousands more per year compared to the national average, and climate-related risk factors, such as hurricanes and flooding, further increase premiums.

• Limited Housing Supply

Geography constrains Miami’s housing market — the Atlantic Ocean to the east and the Everglades to the west limit buildable land. Add zoning restrictions and lengthy permitting, and the result is limited new supply and higher prices.

• Wealth Inequality

Generational wealth plays a significant role in homeownership. In Miami, many households lack the savings or family resources needed for down payments, even if they could afford the ongoing mortgage payments.

What Miami Would Need to Change

If Miami wants to improve its homeownership rate and give more residents the chance to buy, several systemic changes are needed:

• Increase Affordable Supply – Streamline zoning, permit approvals, and incentivize the development of starter homes and “missing middle” housing.
• Expand Buyer Assistance – Provide stronger down payment assistance, low-interest loan programs, and financial education for first-time buyers.
• Address Insurance Costs – Reform Florida’s insurance market to stabilize premiums and invest in climate resilience projects that reduce property risk.
• Boost Local Wages – Diversify Miami’s economy into higher-paying sectors, such as tech and finance, thereby giving residents greater purchasing power.
• Improve Lending Access – Encourage banks to adopt more flexible underwriting criteria and expand credit-building programs for renters.

Conclusion

Miami has long been a magnet for international buyers and luxury investors; however, this global demand has left many locals priced out of the market. With a homeownership rate of just 57.5%, the city falls well below the national average and sits alongside other expensive coastal metros where renting remains the dominant housing option.

While cities like Los Angeles and New York show even lower homeownership rates, Miami’s unique mix of high prices, stagnant wages, and skyrocketing insurance costs creates significant barriers.

If Miami is to shed its reputation as a “renter’s city,” policymakers and developers must collaborate to expand affordable housing, stabilize insurance markets, and create genuine pathways to homeownership for local families. Without those changes, Miami risks becoming a place where owning a home remains a dream for many — and a reality for only a privileged few.