Miami, known for its sparkling beaches and lively nightlife, is currently experiencing the highest inflation rate in the United States.
In October, inflation in the Miami, Fort Lauderdale and West Palm Beach area reached 7.4%, more than double the national rate of 3.2%, and much of that is due to high housing costs.
Not only is Miami experiencing high inflation, but also high real estate prices, due in part to the migration of billionaires to South Florida.
This isn’t the first time inflation has been above average in South Florida. In April, inflation in the Miami region was 9%, well above the national average of 4.9%.
U.S. Bureau of Labor Statistics regional commissioner Victoria Lee attributed the increase in Miami to a rise in the housing index, which measures the rental equivalent value of a home. According to the index, housing costs in the region were 12% higher than last year.
Rental prices are above the national average
According to real estate group Zillow, the median income in Miami is $3,200, $1,200 higher than the U.S. average. Still, the median income in Miami has fallen by $500 since last year.
Other indicators of inflation also rose, including clothing (13.5%), fuel and utilities (9.2%) and food and beverages (4.6%), all still above the national average.