Saturday, August 25, 2007

Passin' On Paradise: South Florida's High Cost of Living is Driving People Away

From today's Miami Herald: "Recruiting workers and keeping them has become increasingly challenging for South Florida employers, as home prices have soared out of reach even for many two-income households."

Scary Stats:
  • Incomes rose here by 28% between 2000 and 2006. The $39,900 median income has been "all but gobbled up by the rise in property taxes and insurance alone."
  • Property tax on a median-priced home rose to $8,011 last year from $3,505 in 2000.
  • Between 2000 and 2006 the median home price rose 172 percent to $375,800 in Miami-Dade.
  • Only 1 in 10 homes sold in Miami-Dade was affordable to a family earning the median income.
  • Turnover of prosecutors at the Miami-Dade state attorney's office is approximately 20% per year because they can't afford to live here.
  • To recruit doctors and research scientists, the University of Miami is kicking in up to 50% of the purchase price of a home-- up to $300,000-- in exchange for a stake in the property. When an employee sells the property, the university shares in the equity appreciation.
  • Nurses and other skilled medical workers can't afford to live here. Baptist Health has bought a large Kendall apartment complex which it is renovating to offer as discount rentals for hard-to-fill positions such as nurses.
As MVB has been saying for over a year now, it's scary out there and getting worse.

UpDate (9/12): Today's Miami Herald reports that nearly a quarter of south Florida homeowners spend at least half of their income on housing. Miami-Dade had the highest rate in the U.S. (24.9% spend 50% of income on housing).

UpDate (9/20): And it keeps getting worse. Today the Miami Herald reported south Florida housing costs rose 8.4 percent in July and August-- the fastest rise in 25 years-- while overall costs rose 3.7 percent.

UpDate (5/15/08): Today the Miami Dade County Commision will vote on whether or not to increase funding the North Terminal by another $64.3 million in order to finish the baggage handling system ($43.5 million) and the automated people mover ($20.8 million). How can they say no? And so it goes.

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Anonymous Anonymous said...

I can assure that the turnover at the Miami SAO is higher than that.

12:43 AM  
Blogger Miami-Forum said...

Excellent post! I'm a Financial Analyst and I've been working in Accounting for about 7 years. I figured I'd be living comfortable by now. But I'm barely be able to pay my bills each month.

4:32 PM  
Blogger Verticus S. Erectus said...

Dude, if a Financial Analyst can't make it here, what hope do I have? I can't even balance my check book. Holy crap!

5:05 PM  
Blogger Miami-Forum said...

Put some google adds on your site ... I'll click them ... J/K

But seriously, its hard to balance anything if the bills are more than the income!

I've been here for the last 8 years or so. When I first moved to Miami, I was renting a nice apartment in Doral for $530. Now that same apartment goes for $1,100.

I'm currently looking for an apartment ... I'm trying to find one in the Central Miami area and even the overpriced complexes are mostly filled.

7:57 PM  
Blogger Verticus S. Erectus said...

Man, I hate to hear this stuff. I think we need government intervention before its too late. In "Paradise" you shouldn't have to live like that.

10:02 PM  
Anonymous Anonymous said...

Don't look to the government. Soon anyone working for the government who dares to make over 50000 a year will be laid off. Those college-educated, experienced workers will have to leave Dade to find a job that pays enough to pay a mortgage. Have fun down here in S. FL once the middle class is gone.

10:28 PM  

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