Have you always dreamed of living in Miami Florida or traveling there for a vacation?
If you have, you may be surprised by just how expensive it is to live in Miami.
This is one of the most expensive areas of the country to visit and enjoy.
You may be curious why this is and if there is anything that can be done about it.
We have put together the top 20 reasons that Miami is so expensive, these are things that you should know and understand well before planning a move or a trip to the area.
Although Miami is quite expensive, many people still choose to call this tropical area of the country home.
Why Is Miami So Expensive? (Top 20 Reasons)
The weather in Miami is comfortable and warm all year long.
If you want to enjoy being outdoors, swim, and go to the beach, Miami is the perfect spot to do it.
You won’t need to own a snow shovel when you live in Miami, and a cold day in the winter will be closer to about 60 degrees Fahrenheit.
The weather in Miami is a major attraction for people because they enjoy being outside.
Also, many older people will find that better weather is going to make it easier for them to feel better and have fewer aches and pains.
There is no question that the weather in Miami helps it to stand out as one of the more expensive places to live.
Since not much can be done about the weather, this is a cost you are stuck with.
Miami is one of those cities that will stay active all night long.
If you are a fan of music, nightlife, and clubs there is plenty to do in Miami.
Having access to all of this entertainment ends up making Miami a bit more expensive than other places.
Even if people don’t want to go out every night, they enjoy having the ability to do so from time to time.
The nightlife in Miami starts late, and it continues into the morning hours.
This is a place that may require a nap on the beach midday so that you don’t miss out on all that Miami has to offer at night.
The lifestyle in Miami is fast-paced, yet because of the access to the beach and the weather and nightlife, it is also a place where you can stay busy and engaged.
Many people enjoy the Miami lifestyle because you can choose to do a lot in a day, or you can simply choose to hang out on the beach.
There are people of all different cultures and income levels who have chosen Miami as home, but there is a specific way that most people live.
You will have to be comfortable being around a lot of people and enjoying a constant party.
This type of lifestyle is going to be more expensive than a small town with not much to offer its residents when it comes to a unique lifestyle.
The Miami beaches are some of the best in the country.
You are far enough south when you are in Miami to have access to very clear water that is warm for a good portion of the year.
The sand is soft, there are very few rocks at the Miami beaches, and there are beach bars and live entertainment up and down each section of the high-end beach.
This is a place you will never get tired of as long as you are living in Miami.
For those who are visiting Miami, it can be tricky to navigate the parking at the beach, so try and stay in a hotel close to the water.
Of course, this is going to cost you quite a bit more money, but in the end, if you want to see Miami the right way, this is an excellent choice to make.
5. Apartment Costs
Many of the people who live in Miami want to live in an apartment as opposed to a house.
This has a lot to do with the housing costs in this area.
However, because the demand for apartments has increased so much, the pricing is going up as well.
This means that, when you were originally going to choose an apartment because it was affordable, now none of the apartments are affordable.
For many people, Miami is home for only part of the year.
This means that they want something they can afford and escape to at various times, and the apartment is a perfect choice, but there are just not enough of them to take care of everyone.
6. Real Estate
Real estate in Miami is some of the highest in the entire state of Florida.
There are plenty of ordinary people who live in Miami, but there are also some very wealthy people.
Some areas of Miami have homes that sell for five million dollars or more.
These people pay these prices to have access to the same amenities that anyone is looking for in the Miami area.
The real estate prices in Miami have been going up for years and years, and there is likely no end in sight for those who are living in Miami.
With the most recent real estate trends and the way mortgage rates have lowered, prices are only continuing to go up.
7. Wealthy People
When wealthy people enjoy an area, pricing starts to go up in that spot.
Since these people can afford the best of the best, businesses and establishments are known to charge quite a bit of money.
Miami is home to some of the wealthiest people in the country, and they will want to spend money on fine dining and drinks when they go out.
They also expect high-end furniture, art, and entertainment.
This means that these places that cater to wealthy people will start to fill the Miami area.
In the end, this means that the area becomes more expensive for all of those who live there.
There is not all that much that can be done about this because the chances of wealthy people leaving Miami for good are probably unlikely.
8. Travel Destination
Places that people want to visit are typically quite a bit more expensive.
Miami is a travel destination.
Throughout the year, you will notice times when Miami is quite a bit crowded.
This is because people are coming into the area and are interested in going at certain times of the year when events take place.
There are so many things about Miami that are built to appeal to the tourist.
As we all know, when you are labeled as a tourist, you are often taken advantage of from a money standpoint.
It’s expensive to pay for these types of excursions and events, and if you are living in Miami, it’s going to be just as expensive.
9. Limited Land
When an area becomes popular, lots of building will take place.
There are companies that will come in and develop the area to be able to accommodate even more people.
However, in Miami, this is really not possible.
There is no land left to be able to build more in Miami.
The area is completely built up, and there is no room for the area to expand.
In fact, the towns around Miami have been growing and increasing in price because of the overflow coming from the Miami area.
This has been going on for years, and there is no end in sight.
From Miami all the way up to West Palm Beach, there are very high-income expensive areas.
10. Close To The Florida Keys
Miami is very close to the Florida Keys.
The Florida Keys are a unique area of the country that is truly unlike any other area.
This is a tropical type of place that is going to be a very popular vacation destination.
Key West is the southernmost point in the United States.
The fact that when you live in Miami, you are going to be close to the Florida Keys makes it an even more expensive place to live.
You will be able to escape to a tropical paradise without ever having to get on an airplane.
The Florida Keys are not quite as expensive as Miami, and there are areas where you can spend more or less money depending on the type of vacation you are looking for.
11. No Affordable Housing
Since Miami was built up with all of these high-end homes, there is no space left to build affordable housing.
As you can see when you look at the city, there are condo buildings and apartment buildings that are brand new, large, and beautiful.
However, the luxury features that were put into these places keep them from being affordable for most people.
With the way that the area of Miami has been built up, there is no room for affordable housing to be built.
This is not going to change anytime soon, and chances are Miami will never truly become an affordable place to live.
If you are thinking that this is the area you would like to move to, you are going to have to start saving up and plan for it well ahead of time.
If not, your dream of living in Miami may never happen.
12. High Demand
Miami is in high demand.
People want to live in the area because of all that it has to offer.
When something is in higher demand, the cost that you will pay to live there is going to be considerably higher.
The is an example of the concept of supply and demand.
The supply in Miami is quite low yet the demand is high.
This means that people who own a property in Miami are going to be able to charge more and more money for it as time goes on.
If you purchased the property in Miami many years ago, chances are you have made quite a bit of money on them appropriately.
Since people are seeking access to this unique area, they will have no issues paying for the ever-increasing prices that we see.
13. Car Insurance
Car insurance is extremely expensive in Miami.
In fact, so many people are biking, walking, and using public transportation because of the cost to own a car in the Miami area.
Car insurance in Miami is incredibly expensive because of the fact that many people don’t have car insurance.
This means that if you get hit, chances are you are going to have a rather large bill to pay.
The uninsured motorist costs for those who are living in Miami are some of the highest in the country.
It is very risky to ignore this coverage because you could end up with a great deal of issues in the long run.
The expense to take care of yourself or your car, should there be an issue, is going to be much too high to handle on your own.
Therefore, car insurance is a necessary but a very high expense of living in the Miami area.
14. Thriving Business Climate
If you are wondering how all of these wealthy people in Miami made their money, a great deal of it is because the business climate in Miami is very strong.
Businesses in the area are thriving, and because of that, the area gets more and more expensive.
Businesses have access to the people and resources that they need to make a very strong profit.
Overall, the thriving business climate only adds to the total costs that you pay to live in the Miami area.
15. Cost Of Food
You would think that living in an area where the climate is almost always perfect, you would have no trouble finding affordable food.
However, this is not the case in Miami.
The food is very expensive, and it has everything to do with the fact that people expect high quality in an expensive area.
In some areas of the country where a hamburger or a sandwich is considered a good meal out, in Miami, things get a bit higher end.
You can almost guarantee that if you are going out, you are looking at an $18 to $25.00 hamburger.
Certainly, this is more than most people can afford on a regular basis.
As we have mentioned a few times, the space in Miami is very limited.
There is not much room for more housing and more entertainment, or more people for that matter.
This means that parking is also very limited.
If you can ensure that you have enough money to have a car and car insurance, you are also going to have to deal with paying for parking.
If you live in a high-rise in the downtown area, chances are you are going to have to find a local garage that can accommodate your car.
This can cost thousands of dollars per month which is more than most are willing to pay.
Homes with driveways in the Miami area are going to be quite expensive.
17. People Will Pay
Very often, when we talk about why things are so expensive, one of the main reasons is that people are willing to pay.
People find that there are enough great things about a place that they justify the high expenses.
This is certainly the case in Miami.
Not every person who goes to the Miami area is going to think that this is the best place they have ever laid eyes on, yet others will.
Because people have been finding Miami to be a wonderful place to call home for many years, the pricing continues to go up and get more expensive.
18. Expensive Health Care
Although there is access to some good health care in the Miami area, it comes at a cost.
The price of healthcare in the area is very high, and there are not very many plans to choose from.
If you are able to afford to live in the Miami area, you will need to be able to afford the high price of healthcare as well.
More and more doctors have limited the plans they take, making it harder for you to find access to good quality doctors.
Keep this in mind if you have medical issues and are moving to the Miami area.
Healthcare is expensive anywhere, but these areas of high income significantly increase the price that you will pay.
19. Shortage Of Affordable Workers
With how difficult it is to afford to live in Miami, you may have imagined that most service workers have a hard time affording life there.
This brings up two options: one, the workers have to live further away and commute in, or two, they need to make more money to be able to afford to live in Miami.
Workers in the Miami area typically have to get paid more to afford the issues associated with getting to Miami and working there.
This, in turn, brings up issues with the prices of products that you are buying or even services that you are being offered.
If the person completing them is being paid a bit more, you can imagine that the overall cost of the product will also be higher.
20. Festivals And Events
Last but certainly not least are the festivals and events that take place in the Miami area.
There are options for these types of events offered all year long, and they really make people want to live in the general area.
When you can walk to some of the greatest shows, sporting events, and concerts available, you are certainly getting an excellent value for the home that you are living in.
If this is the kind of thing that appeals to you, Miami is a great place to live.
If you are a person who would rather deal with a quiet, natural place to live, don’t move to Miami.
As you have seen from the majority of our reasons, the major appeal with Miami is that it is busy, and things are happening all the time.
People who live in Miami are thrilled with all that they have access to, and they enjoy getting to be very active and involved in it all.
If you understand this type of lifestyle and enjoy the action, then Miami is worth it.
If you are heading on a trip to Miami, sometimes the fall is the cheapest time to go.
Kids are back in school, and the weather is still perfect.
In addition, most snowbirds won’t come down until after the holidays, so this could be the best time for you to consider checking out the greater Miami area.
In the end, you may find a new vacation spot or a new home, but you need to make sure you bring your whole paycheck with you!