Florida real estate difficult for middle class to afford

Florida real estate keeps on climbing in value, and more and more, middle class Americans are being priced out of the market.

The Peninsula ran a story today documenting the fact that some Americans pay more than 50% of their income for their housing. In hot Florida real estate markets such as the realty market in Orlando, the percentage can climb even higher. This leaves people with little room in their budgets for recreation, or for the little extras that help keep a consumer-driven economy running.

The average income for a family in Florida is $44,000. This is 26% short of what is needed to finance a median-priced piece of Florida real estate.

First-time home buyers have a particularly difficult time affording a new home. Expect to see the popularity of risky financing options like interest-only mortgages grow as the price of Florida real estate continues to exceed the incomes of local residents.