74 percent of Miami residents cannot afford homes in Magic City, study says

To paraphase an old adage, Miami is great place to visit, but you can't afford a home to live there.

A new study shows that over 74 percent of Miami households cannot afford to own a home in the Magic City.

Personal finance website GoBanking Rates released a survey showing all U.S. cities where over half the residents cannot buy a home, and Miami ranked third behind Boston and San Francisco.

By calculating the income needed to afford a mortgage in all cities, the study compared that number with households with income equal to or greater than the amount.

The median home price in Miami was projected at $450,000, with an monthly mortgage payment of $2,330.

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Since it's a well-known "rule" that no more than 30 percent of income should go towards a home, a Miami resident would need to annually earn $77,000 to afford a house in the area.

However, the median household income in Miami is just $34,901, according to the study.

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