Good afternoon —
Our real estate articles this week tell the tale of two cities: Springfield, Illinois, and Miami, Florida, and the difference between them is stark.
According to NAR data, out of 183 markets, Springfield is the only one that showed a year-over-year decrease in home sale prices in the second quarter. In fact, the median Springfield area home sold for $143,000 during that time, while the median sales price for the U.S. as a whole was $359,900.
One of the reasons for the low prices, Senior Reporter Matt Blake found, is a serious lack of new residents to buy homes. Between 2010 and 2020, Springfield's population declined to 114,000 people.
Compare that to Miami, where a Redfin study found that the number of homebuyers moving to the city tripled over the last year. In July, the net inflow of Redfin users moving to Miami rose to 7,610 from 2,216 last year. All those new homeowners pushed the median sales price to $500,000 — a 31.6% increase year over year, according to the Miami Association of Realtors.
What does Miami have that Springfield doesn't?
Among other things, low taxes. Florida has no state income tax and property taxes in Miami/Dade county average .97% of a home's assessed value. Illinois, by contrast, not only has a state income tax but property taxes that are the second-highest in the nation (behind New Jersey).
Of course, Miami's beaches aren't too shabby either.
Until tomorrow —
Sarah Wheeler
HousingWire Editor in Chief
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