House hunting in South Florida with $400,000? Here are five areas with the best deals

House hunters can find deals in South Florida, a silver lining for a region where many budget-strapped people have felt priced-out for years.

Lauderhill and Lauderdale Lakes in Broward County, and Gladeview, Opa-locka, Allapattah, Brownsville and Homestead in Miami-Dade County have median sales prices at or below $400,000, according to data curated exclusively for the Miami Herald.

Analytics Miami Founder Ana Bozovic compiled sales data from the Multiple Listing Service to identify the five ZIP codes with the lowest median sales prices in 2023. A ZIP code had to have at least 100 deals in the past year to show enough demand and qualify in the rankings.

Neighboring cities Lauderhill and Lauderdale Lakes won the top spot again — they also ranked among the top last year — with a median sales price of $379,400 in the ZIP code 33311. The area drew hundreds of home shoppers, seeing a total of 566 closings last year, by far the most of any other area in this guide.

Other areas with the best deals include Gladeview (ZIP code 33147) with a median sales price of $395,000, Opa-locka (33054) $399,500, Allapattah/Brownsville (33142) $399,999, and Homestead (33034) at $400,000.

Sure, the neighborhoods are far from perfect. As analyst Bozovic puts it there’s a price that comes with having the cheapest houses in South Florida.

Many of these areas have aging homes, others face concerns with crime or gentrification, and some are far from the urban core — but they provide deals seen in few places in South Florida. The typical house in Miami-Dade costs $615,000; in Broward it’s $600,000.

“If we believe in the Miami story, then buying single-family homes locks in land value in a way you can’t get with a condo,” Bozovic said. “Buying a home close to the urban core is an extremely strong long-term play as the region continues to grow. We can’t build more land and we can’t build more vertical when it comes to houses.”

Known for her real estate expertise and predictions, Bozovic said she believes South Florida will continue to grow. By purchasing a house today, she said, buyers should see steady growth in value over the next decade.

Tips from lenders

For South Floridians eager to buy, Gary Pomeroy said by email there’s down payment assistance programs and lender-offered grants to help house hunters better afford a residence. The first step, said Pomeroy, vice president and Southeast Florida area manager of mortgage at PNC Bank, would be to talk to a lender.

“In South Florida, there is a limited inventory of homes available and an abundance of buyers competing for the same properties,” Pomeroy said. “In this highly competitive environment, showing sellers that you have the financial ability to buy in the first place can increase the odds of landing the home you want. It’s important to be armed with an endorsement from your lender, such as a pre-approval, before you look at the very first home. This will also give you a clearer idea of how much money you’re likely qualified to borrow.”

Another strategy might be deciding when to buy. Pomeroy said the buying season peaks from March through September. Holding out to buy before or after might give a buyer the upper hand in negotiating with sellers amid less competition.

South Florida’s most affordable areas

Here’s where buyers can find the cheapest houses in South Florida:

▪ Lauderhill/Lauderdale Lakes

Median sales price for houses: $379,400 (ZIP code 33311)

Area profile: Lauderhill and Lauderdale Lakes have easy access to Florida’s Turnpike. In addition to community parks, residents also have the Lauderhill Historical Museum, a 3,000-square-foot space that once housed the city’s first city hall. For beach lovers, the ZIP code is about a 30 minute drive to Fort Lauderdale beach.

▪ Gladeview

Median sales price for houses: $395,000 (ZIP code 33147)

Area profile: The neighborhood sits close to booming neighborhoods, nestled between El Portal and Hialeah. Nearby Hialeah is undergoing a renaissance, seeing new housing and developers like Avra Jain turning warehouses into trendy places for night life and outings.

▪ Opa-locka

Median sales price for houses: $399,500 (ZIP code 33054)

Area profile: Sandwiched between Hialeah and Miami Gardens, Opa-locka goes through a series of highs and lows every few years, plagued by political and financial corruption scandals. Besides its attainable housing prices, Opa-locka is well-known for its old City Hall quarters residing in a Bernhardt Muller-designed Moorish Revival style project, as well as a blossoming art scene.

▪ Allapattah/Brownsville

Median sales price for houses: $399,999 (ZIP code 33142)

Area profile: Allapattah’s art scene landed it on the map in recent years as a go-to spot. Collectors like the Rubell family and billionaire condo developer and philanthropist Jorge Pérez have transformed warehouse spaces into posh museums.

▪ Homestead

Median sales price for houses: $400,000 (ZIP code 33034)

Area profile: Bordering the Everglades and on the way to the Florida Keys, Homestead is known for its green space, including nearby Fruit and Spice Park in the Redland and TikTok-famous rare tropical fruit vendors. Just before the pandemic, the city’s downtown underwent a major makeover, and in 2021 saw the opening of the world’s first cyber library, designed by a theme park company. It has several attractions for family and those who enjoy the outdoors, but urbanites may be wary and weary about the two-hour commute to the county’s urban core.