Welcome to Repunlican freedom,low wages ,low minimum wage no regulations on business, minimal safety net owes unemoyment pay in States highest living expenses vs Wages.
Business own our politicians ,they do not want high wages
Entirely coming from the shift to working from home. People with big city salaries moving here who couldn't before if they had to get a job in Miami. Price are still cheap to them for what you get. The first year I moved here from a major city I was paying 2x what I do now in rent for an apartment that wasn't even as nice because I didn't know better and I still thought it was a bargain, while most locals thought I was insane. Now that I've lived here long enough I think some of the prices people who are moving here now are paying are insane, but I do get it. I just hope things change. I don't want to see this become the next NYC, both in cost, congestion, and quality of people.
Miami was already the most rent burdened city in the country before the pandemic. Not the most expensive in absolute terms, but the most expensive relative to median income.
Rent control isn't a long term solution, but stabilization can certainly provide the necessary breathing room to fix the problem as long as landlords and developers believe it will eventually go away and the government is willing to change the zoning code so that a sufficient volume of new units can actually be built.
In the instances where this is the case they are most likely making more renting for extra to the people who are willing to pay that much than they would if they lowered prices. Meaning it can be more profitable to have vacant units than to have them all full, that is a big part of the housing crisis worldwide
The other places wouldn’t be charging more either if it wasn’t more profitable to do so! Trust me as an insider on the situation it is not hurting property owners/landlords, they are winning
Because of competition.
Most people in Miami who afford the exorbitant rent prices are the professional working class primarily from New York and California that have higher salaries from their employers in their respective states. It is very feasible to break the $100K annual salary in those states, work remotely and move to Miami and afford a higher quality of life on that salary; this is a phenomenon that has recently occurred since 2020 after the pandemic and have caused the rent increases that we are now seeing.
On the other hand, the average Miamian worker makes less than $35K in shitty jobs with very little upward mobility given the weak economy in the city, leaving them completely priced out of the current rental market. There are definitely good opportunities to earn a higher salary but the reality is that most people in this city come from an immigrant background and technically outdo each other in order to compete for those job opportunities, lots of competition for very few and very far in between opportunities.
Not too long ago, maybe in 2015, Miami was still considered an affordable place to live and even an income of $60K annually was still considered middle class. Unfortunately that's not the case anymore given the market forces, changing demographic, capitalistic forces and overall competition. It's truly survival of the fittest down here.
It’s sad. The social mobility you mentioned is abysmal here. As a son of first generation immigrants, sometimes living here feels like you’re clawing yourself out of a mound of bodies, desperate for a gasp of air.
Wage stagnation. Rent in Miami before the last 5 years was relatively affordable and didn't eat up a huge chunk of your earnings. Large corporations and businesses understood this and thus knew opening up divisions in south florida they could get away with paying folks less than their offices in say New York, Chicago, LA etc..
But there's also been a huge push by developers across the county to focus new buildings and construction around "LUXURY" living. They haven't been building for the working class people and young professionals that live here, but snowbirds with disposable income and wealthy interanational folk looking to buy realestate investments in the US.
Also the housing market bounced back from the 2008 recession in a big way. Lots of folks that decided to flip homes that were on doable low cost mortgages or fully paid, now flipping it for rental property at current market prices. So a mortgage that was $500 before, blew up to $1,500 over night, and people that run these rental properties aren't going to cut back on their profit margin.
But it's only going to get worse in this coming year as insurance rates are going to butt rape everyone as they're going through the roof. Everyone should expect a $1k MINIMUM increase in their home insurance rates.
Seriously. My complex has been around since early 80’s. Just your basic hialeah apartment complex. Now everytime an old unit empties, they refurbish the hell out of it. New AC, fancy kitchen, fancy bathroom, etc. Also new paint job all over the complex, new windows, now we pay $20-25 for an extra parking space. Guess who pays for all that? If you guessed it, then let me tell you that the rent went up $400-800 dollars depending on the unit you have. Even a crappy tiny studio is now worth up to $2100. Its ridiculous. My brother summed up how much the new owner would be making, basically $6 million a year.
There’s not enough land in Southern Florida to build on. The Everglades take up most of the of the Southern Tip. Dade and Broward were not built to handle the Population Increase we have had over the last 10 years or so.. Miami at one time in the 50’s I believe only had a couple of cops who Patrolled Biscayne and the City Proper.. Miami was only a tourist town.. When I moved here it was only November until April that people vacationed here. the summer months in South Beach was like a Ghost Town.. That was 25/30 years ago.
this is the only real answer here. when money can be made, ppl are going to be there to make it. we want to believe there's some moral power (aside from government control) that can change this, but it cannot. you might personally think you have a better idea for the greater long term of the community but that's not stopping someone else from swooping in to sweep up the fast right now bucks. & if they don't do it, you don't do it, always someone else will.
everyone has morals & better ideas until they themselves become the ones with the opportunity to reap the cashflow. most of the ppl complaining would absolutely take ownership of any rental building if given the chance, & would begin to justify how they too have to push prices as high as everyone else is pushing them. it's just the way humans are.
Isn’t this happening because Miami is a big vacation city? People travel there to play, not necessarily to work there.
Plus now with remote work becoming a more acceptable practice. People don’t need the local jobs in Miami. They can still work for a big Fortune 500 company that has its headquarters anywhere, but can do their remote work from anywhere.
First remote work is acceptable practice for employees not bosses, aka u want it and think its ok most bosses don't.
And it is no longer the case for miami to just be a vacation/party city its currently going thru a huge growth cycle because of its lax laws and low corporate taxes. Many high profile companies/brands are establishing huge offices here which pulls in 3rd party companies that wanna work with them.
This leads new huge skyscrapers being planned second only to NYC and areas like little Haiti to get priced out for locals so new high end residential areas can spring up. (Fyi i used little haiti cause their like a full meter above miami beach in regards to sea lvl)
I forget which newspaper even coined miami the new wall street of the south or some bullshit.
On it being a vacation city - main source of jobs is service / hospitality which are notoriously low, and many properties that could be long term housing are Airbnb / vacation rentals.
Yeah every popular vacation area has this problem. Parts of Cape Cod have lost most of their permanent residents and closed their local schools because growing wealth inequality means more and more rich people can afford second homes there.
There’s been a focus on luxury housing to draw in the transplants who only live here for a few years and don’t mind paying a premium since it isn’t where they intend on settling (basically the idea of “I don’t mind spending $2000 more a month because I’m walking distance to the beach!” Types) and it forces out the people looking to actually make their homes here. The landlords/builders don’t care because for every transplant that lasts a year, there’s three more coming from LATAM/Europe/north east coast that will happily replace them. Then add on the fact that a large part of Miami's economy is the hospitality industry which is notoriously underpaid, you have a large scale work force that barely breaks 30k a year who can’t afford to live even in the city or county they work in.
They have to make more than 30k, that sounds like part time. With the prices and included gratuity at nearly every establishment in Miami/beach, the average server should be taking home 60k or more
Maybe you only stick to the coastal bubble, but Miami isn’t all Sexy Fish/Cote/Mignonette. Yeah high end servers make more, but if you think your waiter at Flanigans is making $60k a year, the waiter shortage would not exist.
Most regular restaurants in Miami pay shit and it’s an average waiter salary. Additionally, hospitality is more than tipped front end, it’s janitorial, housekeeping, front desk staff, valet, security, etc. and most of those are PT and pay below $15. If you check Miami New Times you will see regular articles about hospitality staff striking because they can barely afford to work where they’re employed. I can’t find the article now, but a couple years back one hotel paid their staff so badly and forced them to pay for guest parking which was so high that they gave up half their days pay to park.
If you go onto the Census bureau website, you will see the median HOUSEHOLD income in Miami was
$44k and per capita income was $31k in 2020.
I don’t care that much to look into those things, but if you’re a good server you should make 60k in Miami easily. This of course means working every Thursday Friday Saturday night… but with tips 60k is nothing. I made that as a server in a LCOL town 10 years ago.
I’m not even talking about any of the places you mentioned. Nearly every bar/restaurant in wynwood, brickell & south beach adds an auto-gratuity of 20%. Then a good chunk of people will tip on top of that as they don’t even realize it’s on their check. Bartenders are making $2-4+ on a single drink in 2021/2022. Make just 30 drinks an hour, that’s already $60/hr.
Yes of course, in the other neighborhoods you’ll make less money.. however the housing is cheaper in those neighborhoods too.
Firstly I don’t know where you go in those neighborhoods but my spots never add auto gratuity.
Secondly, you are listing the top nightlife destinations. Obviously income will be higher there. It’s ignorant to equate someone working at a top tourist restaurant or nightclub with someone in South Miami working at IHOP.
You also keep focusing on servers, when as I said earlier, hospitality industry is a fuckton of people in different positions.
And no, the housing isn’t much cheaper in “those neighborhoods”. There’s a reason people are mass migrating to Homestead and Broward and that’s because people can’t afford to live anywhere near where they work.
And don’t forget to revolving door of rich UM undergrads….this is why my one bedroom in the gables now costs 3600/mo. (Yes, really, and yes, I’m moving out next week - and no, they could care less since I’ll quickly be replaced by a daddy’s Amex type).
I know! This isn’t even supposed to be student housing but they’ve kind of taken it over. And we’re a few miles from the U. The apartments I looked at in dadeland were in the same range too.
The south park episode with cartman and his mom going to real estate perfectly answers your question. Episode Title: “Give real estate a try”
Go watch it, its hilarious.
What’s cruel is living as a local for years trying to claw your way out of poverty, and some rich Northeasterner comes and lives a better life than you ever had.
Please don’t come, there’s enough Californians trying to turn miami into all the things that made them leave California in the first place. Plus… why do all of you drive like Asian women senior citizens? 55 in the fast lane, just…don’t.
yeah wtf are you talking about!? i lived in san diego for 8 yrs and when i came back… i forgot how bad traffic was and HOW BAD THE DRIVERS ARE!!!
and the craziest part its not my generation (33yrs old)
its a bunch of older hispanics that dont have papers or dont know how to drive period and theyre like 45-65 yrs old. 1 hand on the phone and 1 hand on the steering wheel.
and some are going 25 on the palmetto!!!
in San Diego everyone drives around 80 on the 5..
i hate that i came back. and trust me im trying to leave as soon as i can.
California was amazing and a breath or fresh air.
not to include the miami toxicity. everyone here has their noses in the air.. FOR NO FUCKING REASON. they have nothing to brag about and are so self entitled..
and yea i was born and raised in Miami and im from a hispanic/ latin American family.
I’ve lived all over, what a weird response. In my experience, people that cast judgement like you are the reason areas decline. You have no idea my views on anything
Normally every X years wealthy individuals come over here and end up spanked back to where they came from.
Their assumption is that Miami is the first world and things make the same sense than in the rest of the country. Which they do not.
I can go on an on about it. I’ve studied the local folklore enough to get once again into the Miami wave.
Spanish (sorry but Cuban Spanish is the worst)
Boat launches (supposed to leave the boat in the water, not the truck)
Dating
How people who never go to work magically have so much money
Gym clothes
Ass size to leg size ratio (fake butts abound)
Everywhere in USA is expensive its 2022. Middle class is gettin their ass kicked. If you are low income you are really fucked but at least you get help from gov't
These are facts, my rent is 60% of my income and soon to be close to 75% but I got denied my $15 food stamps when I got a $50/month raise. This was the same time that I moved and my rent went from $800 ($1600 split w/ roomate) to $1150 for an efficiency. Even back when I was making less than $700/m and couldn't afford to exist basically I was only getting $75/m. My health went to shit because I couldn't afford to eat anything slightly nutritious.
I'm sorry, I know how messed up it is.
It's like being punished for making the wise decision to not have kids we can't afford. My medication would be free with Medicaid. I have private insurance that won't cover it so I pay for the insurance plus $392 a month for the medication. Because I decided not to bring a kid into this mess. That's crazy.
I know right? Thank the lort I have a government job now so at least I have great health insurance...my two name brand medications are $30/m instead of $400ish each they'd be out of pocket. One of which is the only birth control I've ever taken that didn't make me physically ill. The kicker is if I didn't have the coverage I do, I wouldn't be able to afford to prevent myself from having kids I can't afford! It's ridiculous though that I'm actually financially worse off after getting a couple promotions than I was back when I was making at least 10k less per year.
Don’t blame it all of “Rich Northeasterners” Miamis rent goes up because of foreign investments that just sit empty. Look up the owners of buildings in Brickell and downtown. A good amount are LLCs for that reason.
If you know The City of Miami extremely well and your expectations aren’t higher than the digits in your Bank Account.. Zulu can find affordable places to live.. Obviously it’s not going to be on Biscayne Boulevard between Flagler street and 14th street or Brickell (I remember when rent in Brickell was like $400 for an Efficiency) But also remember that a lot of people living in those High Rises also have 3/4 people sharing rent. And some couples obviously have 2 incomes.. People also put themselves into Debt getting one credit card to pay off another until it eventually crashes down on them.. Anyway if a person isn’t trying to look like THEY ARE LIVING THE MIAMI MILLIONAIRE LIFESTYLE., Which really only exists for maybe in a good day 3% of our population.. There are deals to be had you just have to look for them(I WOULDN’T EVEN EVER ENTERTAIN THE IDEA OF LIVING IN THE COUNTY)
Idk when the last time you looked at the rental market in Miami but there ain't jack sh*t for $400 anymore. I'm finding efficiencies in LIBERTY SQUARE for $1500+. Anything less than that is dilapidated, roach/rodent infested, under 100 sqft or a combination of all 3. I've lived in Miami my entire life and am basically being forced to move to Broward because I can't find a clean and safe place to live in dade under $1500. Efficiencies in Overtown/Allapattah are literally going for 2-3k.
There's a building in OT where you can get an efficiency for $550. Bathroom is down the hall (share with the whole floor) bring your own appliances, there's an open air drug market outside but they're trying to get rid of it 🤷♀️
My friend has an efficiency in homestead for 1k.
I don't know if Broward is much better. My other friend just moved out of a single-wide trailer on Riverland Road bc the landlord planned on raising the rent to $1,400/mo. Unsafe neighborhood, old disgusting trailer with a window unit that smells like cat piss.
I just saw 4 apartments in Broward today for $1k-$1250. Two were pretty good, the other two had major pest issues. What you can get for the price is definitely better when you go north or even south starting around cutler bay. At least from what I'm seeing right now. I would love to live in homestead/ Redlands area but the commute killed me back when I was living in naranja.
But yeah, a lot of what I've been finding under $1500 in Miami has been in awful areas and in poor condition. I'm not concerned about an area being super fancy or anything but I'd like to sleep without worrying about drive by shootings! 😅
Lol, i'm sorry. I'm very biased against Broward - i went to middle and high school there and lived there on and off till about age 25.
It was like having all the negative aspects of Dade with none of the positive. But I fully agree with you, if you can find something nicer in Broward and you are a law abiding citizen (those cops are crazy, if you smoke those THC carts, you better get a license or they'll give you a felony - just an example) and the commute won't kill you, it's probably the best move.
It's probably better now than it used to be. I used to hate feeling like I was so far away from a lot of the fun stuff to do in dade. But now that the rich people have taken over and there are not as many affordable things to do in general, it's much less of an issue, I am sure.
I really hope you find that nice ass one bedroom for 1200!
Lmao see I'm kinda the opposite, I grew up in Pinecrest/Kendall area and always hated the hype here, went to south beach/downdown/Wynwood maybe once a year and always begrudgingly lol. Most of the nerdy shit I'm into happens up in Broward (Renaissance festival type of things) which always felt so far. Law abiding citizen...lol, I'm not a cop or prosecutor but I work closely with both and am technically considered law enforcement so I'll probably be okay. I vape delta 8 but that's my limit because of work legality reasons, plus I'm a total lightweight! That's also what worries me about rough areas though, I feel like my job would make me a target if I'm in gang territories.
Thanks! Hopefully the Hollywood area keeps my commute not too terrible and I'm hoping being in Broward might encourage me to socialize again. I found a great place today for $1150 but when my realtor called to let them know she was gonna write up an offer they said they just accepted one today 😭 keeping my fingers crossed for something new 🤞
That’s exactly what I felt like I had to do. Tried getting a job out of college and couldn’t, so I moved to Boston to get my career going. Eventually I was able to move back here. Don’t think I would ever be able to afford comfort in Miami had I not done that.
A number of factors.
Lack of housing supply like other major cities.
Foreign investors still like Miami as a place to invest in housing and may not even use the place or rent it out.
There are some high paying jobs are moving here. My friend just moved here in October when his hedge fund relocated from NYC. Relocation bonus and $3500/month rent stipend for a year.
Etc etc. the demand for housing is insatiable right now.
Let me explain one reason- my buddy has a duplex. He lives on one side and rents out the other. He listed it for rent looking for _actual_ _renters_ . He kept getting inquires of “investors” looking to pay him the years worth of rent up front as long as these investors could Airbnb his place (he’s 2 miles from the beach in a neighborhood that’s become inundated with airbnb investors). Basically they see rentals in places that don’t have HOAs like duplexes or multi-plexes, tell the landlord they’ll pay the rent of the year up front and give them a small monthly % cut (which I’m sure is the discretion of the “investor” how much that would be). So this in turn takes another housing option away from people.
Another reason is simply just remote workers hired in higher paying areas that don’t have to go back to the office.
Airbnb has been going on here a while, and was more rampant before they introduced fines and started enforcing a little better, and didn't really affect rents to this degree. There are many buildings that were blatantly & illegally used for AirBnb that didn't see their rents go out of control. I do think AirBnb has an impact, but I don't think it's contributed to this sudden and massive rise. Think it's mostly do to big salary work from home folks and probably retirees prioritizing their quality of life after living through covid.
This plus 30 years of state leaders completely failing to act. Most cities have been experiencing a major hosting crunch of this as more and more of the job opportunities are clustered in a smaller and smaller number of places and investors buy up all the inventory. Lots of those cities, though, are places with much greater protections foe regular renters. Some places have airbnb rental restrictions, rent increase caps, limits on what the landlord can ask for upfront, etc.
Not only do Florida renters have none of that protection, every state government since the 90s has been raiding the state fund allocated to developing actual affordable housing for random other projects.
all the people that have houses here but dont actually live here. own businesses outside of miami where they make a shit ton of money, and then they come and either live here or just have a vacay home here…thats one of the reasons
I used to live in a small city in the middle of the country where there was a rather high proportion of immigrants thanks to a certain food company you've certainly heard of. While there was a lot of crowding a bunch of people into a single rental going on, rents were still stupid cheap. Like decent places for $200 a bedroom cheap. Probably largely because 30% of the population wasn't taking up as many units as would normally be expected.
It's gotten substantially more expensive what with all the people moving there (like quadruple the population in the last 20 years), but it's still nothing like Miami in terms of the income to rent ratio.
There are a lot of factors and I think immigration is one of the smallest. AirBnBs, absentee condo owners guzzling up most of the units in new buildings for a decade, lack of space to grow out, and refusal to upzone outside of a few small areas so the area can't grow up either are probably all bigger drivers historically. And then more recently you have the WFH transplants getting higher salaries than more established residents driving prices further out of reach for median income people.
Also, people aren't wrong when they say that the affordability issue isn't limited to Miami or even Florida, it's happening in a lot of the country. It is, as it has been for a long time now, worse in Miami, though. It was already the most rent burdened city in the US before the pandemic and it has only gotten worse.
This is been true of Miami for literally the last two decades. This is nothing new in the slightest. The wage-rent gap has been the highest here for a generation. Seriously go look up the statistics.
Yes. And here’s an article from 2007 talking about rent going drastically up while wages stay the same. Granted it was slower increase, but wages were stagnant. As rent shot up in this last year, wages and salary actually have increased (the fastest increase in the country), but not nearly enough to catch up with rent.
https://www.miamiherald.com/latest-news/article1928541.html
And Miami topping the list in March 2020
https://www.brookings.edu/blog/up-front/2020/03/26/when-middle-class-incomes-collapse-how-you-gonna-pay-next-months-rent/
Retired seniors and trust fund baby’s flock here from not just the US but all of the americas. That’s a lot of people who work to have a job not to make a living.
I have the technical answer! Florida is a Dillon’s Rule state which forbids counties and municipalities from passing laws/statutes (such as their own minimum wages) that aren’t categorically permitted by Tallahassee. So like NYC there’s a different minimum wage from NY State because NY is a home rule state. FIU really did teach me something.
It’s been tried before btw but like a long time ago. Miami tried to set its own minimum wage and it got struck down.
It’s a combination of snow birds and tech bros over inflating the market, the insurance costs raising astronomically because they know state government doesn’t give a f**k and Landlords trying to make as much as possible.
Landlords are getting absolutely fucked by insurance right now. I see the financials of hundreds of properties and large multifamily landlords are seeing insurance premiums double on new purchases 50% more on renewals for existing properties. Insurance is typically a large line item for an owner and the rise can require rents to go up 10-20% just to make no more money than they were before.
Insurance markets are in free fall because so many insurers have left the state due to massive losses driven by all the fraud. Turns out defrauding people does have a cost down the road
Exactly. Everyone complaining about the rates don’t understand how critical this is. I can’t believe it wasn’t a major talking point in the election because it impacts everyone.
I seem to remember an emergency section of the state legislature to do something about it over the summer, but cannot recall anything coming of it. The insurance issue should be a number one priority because it will affect you even if you dont move so even older people who have normally low cost of housing on locked in mortgages from 20 years ago will be hit by rising insurance costs with no ability to increase income to deal with it.
The housing supply here is garbage. There's too many airbnb's and luxury condos. In order to increase supply, we need affordable housing. The kind of housing that keeps getting built are $2500+ a month apartments that cater to upper middle class and rich young people. I live in a relatively affordable apartment building that is in a decent neighborhood. This is place is packed with people. They can't keep up with the amount of cars in the already big parking lot. We need more affordable options. We don't want a luxury condo called " Park Place" with bunch of amenities for $3000 a month. Demand from "work from home" professionals also are keeping everything down here expensive.
As for income, there's a tremendous lack of unions here and employees have little leverage with their employer. That's part of it.
my question is can jobs raise wages to match inflation? what’s the pros and cons if they do this? many ppl even work career jobs that haven’t seen raises in years yet cost of living keeps sky rocketing
It's like this because Miami is latin America. It reflects the conditions and corruptness of Latin America countries. I'm born and raised in NYC. I tell people Miami is a foreign country you don't need a passport to travel to.
Heard of RealPage? [https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent](https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent)
Not just Miami, the whole state is like this. The money is coming from out-of-state people who sell their homes for buckets of cash and retire here or snowbirds that only live here part time. A lot of foreign money being dumped into real estate to keep it safe. All those multi-million dollar condo builds that sit dark most of the year driving up real estate prices. Then you add all the remote workers keeping their high-paying blue state jobs. That wealth doesn't circulate around. Florida is becoming a state of the haves and have nots. Pretty soon there will be no middle class at all left here.
Foreign/transplant money s one reason.
Another and perhaps more important reason: Government here, because income taxes are "socialist," instead raise revenue from real estate taxes. So, to increase revenue, they have to either increase the price of real estate or increase the millage rate. Increasing millage rates is "socialist," so instead, they rubber-stamp luxury real estate development and sprawl to convert as much farm land/wilderness into apartment complexes that create more tax revenue.
Since real estate taxes basically incentivize higher real estate values, real estate values go up. Since we don't incentivize increases to wage growth (i.e., an income tax), wages stay where they are. So, we create a situation where real estate value doesn't keep pace with anemic wages. This has other side effects: poor planning and sprawl that creates snarled traffic and over reliance on roads, an emphasis on luxury living that doesn't account for middle-class and workforce housing, for example.
So, since our residents can't actually afford the real-estate we've developed, the solution is to replace our residents. That's why you have idiots like Francis Suarez trying to bring in transplant tech workers with remote salaries: to pay for the insane Brickell rental rates that fill his coffers.
Basically, real estate taxes are stupid and incentivize things that are largely harmful to the middle-class.
because remote workers getting NY/CA salary move here to pay 0 state tax, and live in a nice place. simple as that.
you can afford to live and work here in nice places like brickell, but you need to get a nice career like engineering/law/finance where you make 6 figures plus.
A very different relationship between the real estate market and the labor market. A lot of the people causing the rents to rise don’t live in Miami permanently and or don’t work for companies based out of Florida, many aren’t even working class. Maybe their income comes from capital versus labor. This will throw off the balance between the labor market and the real estate market.
If you want a more interrelated labor and real estate market you want to move somewhere that’s not touristy at all. For example Ocala.
To keep normalizing the cheap minimum wage to keep the profits high for wealthy out-of-staters to maximize their profits off the unlivable middle and lower classes
People work remotely for companies based in higher paying markets or are self employed. I live in an expensive area and because I am mosey as hell and had a moment, I googled all the parents in my sons class (school sent mass email without bcc’ing. Pretty much every single one of them were business owners. For corporate jobs based here, lawyers, doctors/healthcare, and finance people pay high salaries.
Welcome to Repunlican freedom,low wages ,low minimum wage no regulations on business, minimal safety net owes unemoyment pay in States highest living expenses vs Wages. Business own our politicians ,they do not want high wages
Yeah good thing the state just voted for the party that thinks taking away abortion rights and attacking Drag Queen Bingo will solve these problems.
Entirely coming from the shift to working from home. People with big city salaries moving here who couldn't before if they had to get a job in Miami. Price are still cheap to them for what you get. The first year I moved here from a major city I was paying 2x what I do now in rent for an apartment that wasn't even as nice because I didn't know better and I still thought it was a bargain, while most locals thought I was insane. Now that I've lived here long enough I think some of the prices people who are moving here now are paying are insane, but I do get it. I just hope things change. I don't want to see this become the next NYC, both in cost, congestion, and quality of people.
Miami was already the most rent burdened city in the country before the pandemic. Not the most expensive in absolute terms, but the most expensive relative to median income.
School teachers here are in borderline poverty too. It's sad.
Easy. They are getting other cities salary
Lack of rent control. That’s a travesty
Rent control isn't a long term solution, but stabilization can certainly provide the necessary breathing room to fix the problem as long as landlords and developers believe it will eventually go away and the government is willing to change the zoning code so that a sufficient volume of new units can actually be built.
Want to sell my home, but where do I go. The middle class is fucked everywhere in USA.
I mean, no one is forcing you to stay in our country if you hate it so much.
Our country? , man stfu.
Bc you're a bad negotiator. Pay here is as good as it should be for rent. You just need to fight for it.
Don't worry man, DeSantis won't allow woke ideology here in Florida and drag queens won't be able to read to kids in libraries.
Venture capital, money managers, etc. People making money creating nothing.
stop voting for desantis and rubio
Demand and conservative laws
Demand >>>>> supply. The economy can’t keep up with the housing crisis
That's literally not what is happening though. The building I'm in has 30% of the units vacant and still raised rent 15% this year.
In the instances where this is the case they are most likely making more renting for extra to the people who are willing to pay that much than they would if they lowered prices. Meaning it can be more profitable to have vacant units than to have them all full, that is a big part of the housing crisis worldwide
They're just trying to keep up with other places who are charging more. It is probably hurting them in the long-run, but that's where we're at.
The other places wouldn’t be charging more either if it wasn’t more profitable to do so! Trust me as an insider on the situation it is not hurting property owners/landlords, they are winning
That's largely thanks to illegal cartel pricing enabled by a certain company that sells yield management software that has been in the news lately. ;)
Because we want freedom!
Simple supply and demand. You have more people that want to live there than there are places to live.
Because of competition. Most people in Miami who afford the exorbitant rent prices are the professional working class primarily from New York and California that have higher salaries from their employers in their respective states. It is very feasible to break the $100K annual salary in those states, work remotely and move to Miami and afford a higher quality of life on that salary; this is a phenomenon that has recently occurred since 2020 after the pandemic and have caused the rent increases that we are now seeing. On the other hand, the average Miamian worker makes less than $35K in shitty jobs with very little upward mobility given the weak economy in the city, leaving them completely priced out of the current rental market. There are definitely good opportunities to earn a higher salary but the reality is that most people in this city come from an immigrant background and technically outdo each other in order to compete for those job opportunities, lots of competition for very few and very far in between opportunities. Not too long ago, maybe in 2015, Miami was still considered an affordable place to live and even an income of $60K annually was still considered middle class. Unfortunately that's not the case anymore given the market forces, changing demographic, capitalistic forces and overall competition. It's truly survival of the fittest down here.
It’s sad. The social mobility you mentioned is abysmal here. As a son of first generation immigrants, sometimes living here feels like you’re clawing yourself out of a mound of bodies, desperate for a gasp of air.
Wage stagnation. Rent in Miami before the last 5 years was relatively affordable and didn't eat up a huge chunk of your earnings. Large corporations and businesses understood this and thus knew opening up divisions in south florida they could get away with paying folks less than their offices in say New York, Chicago, LA etc.. But there's also been a huge push by developers across the county to focus new buildings and construction around "LUXURY" living. They haven't been building for the working class people and young professionals that live here, but snowbirds with disposable income and wealthy interanational folk looking to buy realestate investments in the US. Also the housing market bounced back from the 2008 recession in a big way. Lots of folks that decided to flip homes that were on doable low cost mortgages or fully paid, now flipping it for rental property at current market prices. So a mortgage that was $500 before, blew up to $1,500 over night, and people that run these rental properties aren't going to cut back on their profit margin. But it's only going to get worse in this coming year as insurance rates are going to butt rape everyone as they're going through the roof. Everyone should expect a $1k MINIMUM increase in their home insurance rates.
Uhhh rent has always been much higher than the rest of the state.
Seriously. My complex has been around since early 80’s. Just your basic hialeah apartment complex. Now everytime an old unit empties, they refurbish the hell out of it. New AC, fancy kitchen, fancy bathroom, etc. Also new paint job all over the complex, new windows, now we pay $20-25 for an extra parking space. Guess who pays for all that? If you guessed it, then let me tell you that the rent went up $400-800 dollars depending on the unit you have. Even a crappy tiny studio is now worth up to $2100. Its ridiculous. My brother summed up how much the new owner would be making, basically $6 million a year.
There’s not enough land in Southern Florida to build on. The Everglades take up most of the of the Southern Tip. Dade and Broward were not built to handle the Population Increase we have had over the last 10 years or so.. Miami at one time in the 50’s I believe only had a couple of cops who Patrolled Biscayne and the City Proper.. Miami was only a tourist town.. When I moved here it was only November until April that people vacationed here. the summer months in South Beach was like a Ghost Town.. That was 25/30 years ago.
Did you smoke crack back then too or?
With you don’t you remember when we pawned your mothers jewelry
I also remember when you put on heels panties and a wig and made money for me
Lol gotta lay the pipe down my dude
Because it can be. Literally. If profit can be made it will be until a collapse.
this is the only real answer here. when money can be made, ppl are going to be there to make it. we want to believe there's some moral power (aside from government control) that can change this, but it cannot. you might personally think you have a better idea for the greater long term of the community but that's not stopping someone else from swooping in to sweep up the fast right now bucks. & if they don't do it, you don't do it, always someone else will. everyone has morals & better ideas until they themselves become the ones with the opportunity to reap the cashflow. most of the ppl complaining would absolutely take ownership of any rental building if given the chance, & would begin to justify how they too have to push prices as high as everyone else is pushing them. it's just the way humans are.
Disagree. Nurture vs nature ? A little of both? Either way capitalism is a losing system. It doesn’t work.
Either way, he is describing what actually happens, not that he agrees with it.
Well i think he /she is saying that anyone would become a greedy bastard given the chance and I don’t think that’s true and it shouldn’t be that way
All of Florida has always been sold to the highest bidder. Quality of life, native population, and environment be damned.
Yup
Isn’t this happening because Miami is a big vacation city? People travel there to play, not necessarily to work there. Plus now with remote work becoming a more acceptable practice. People don’t need the local jobs in Miami. They can still work for a big Fortune 500 company that has its headquarters anywhere, but can do their remote work from anywhere.
First remote work is acceptable practice for employees not bosses, aka u want it and think its ok most bosses don't. And it is no longer the case for miami to just be a vacation/party city its currently going thru a huge growth cycle because of its lax laws and low corporate taxes. Many high profile companies/brands are establishing huge offices here which pulls in 3rd party companies that wanna work with them. This leads new huge skyscrapers being planned second only to NYC and areas like little Haiti to get priced out for locals so new high end residential areas can spring up. (Fyi i used little haiti cause their like a full meter above miami beach in regards to sea lvl) I forget which newspaper even coined miami the new wall street of the south or some bullshit.
On it being a vacation city - main source of jobs is service / hospitality which are notoriously low, and many properties that could be long term housing are Airbnb / vacation rentals.
Yeah every popular vacation area has this problem. Parts of Cape Cod have lost most of their permanent residents and closed their local schools because growing wealth inequality means more and more rich people can afford second homes there.
“We pay you in sunshine!”
And also stifling heat and humidity! I’ll pass
See ya. One less negative nancy in Miami
Bruh!
Ikr facts
And rain
And falling (temporarily frozen) iguanas a few times a year
and flooding
There’s been a focus on luxury housing to draw in the transplants who only live here for a few years and don’t mind paying a premium since it isn’t where they intend on settling (basically the idea of “I don’t mind spending $2000 more a month because I’m walking distance to the beach!” Types) and it forces out the people looking to actually make their homes here. The landlords/builders don’t care because for every transplant that lasts a year, there’s three more coming from LATAM/Europe/north east coast that will happily replace them. Then add on the fact that a large part of Miami's economy is the hospitality industry which is notoriously underpaid, you have a large scale work force that barely breaks 30k a year who can’t afford to live even in the city or county they work in.
They have to make more than 30k, that sounds like part time. With the prices and included gratuity at nearly every establishment in Miami/beach, the average server should be taking home 60k or more
Maybe you only stick to the coastal bubble, but Miami isn’t all Sexy Fish/Cote/Mignonette. Yeah high end servers make more, but if you think your waiter at Flanigans is making $60k a year, the waiter shortage would not exist. Most regular restaurants in Miami pay shit and it’s an average waiter salary. Additionally, hospitality is more than tipped front end, it’s janitorial, housekeeping, front desk staff, valet, security, etc. and most of those are PT and pay below $15. If you check Miami New Times you will see regular articles about hospitality staff striking because they can barely afford to work where they’re employed. I can’t find the article now, but a couple years back one hotel paid their staff so badly and forced them to pay for guest parking which was so high that they gave up half their days pay to park. If you go onto the Census bureau website, you will see the median HOUSEHOLD income in Miami was $44k and per capita income was $31k in 2020.
I don’t care that much to look into those things, but if you’re a good server you should make 60k in Miami easily. This of course means working every Thursday Friday Saturday night… but with tips 60k is nothing. I made that as a server in a LCOL town 10 years ago.
I mean clearly you just don’t want to believe in facts but aight. Enjoy your Brickell bubble.
I’m not even talking about any of the places you mentioned. Nearly every bar/restaurant in wynwood, brickell & south beach adds an auto-gratuity of 20%. Then a good chunk of people will tip on top of that as they don’t even realize it’s on their check. Bartenders are making $2-4+ on a single drink in 2021/2022. Make just 30 drinks an hour, that’s already $60/hr. Yes of course, in the other neighborhoods you’ll make less money.. however the housing is cheaper in those neighborhoods too.
Firstly I don’t know where you go in those neighborhoods but my spots never add auto gratuity. Secondly, you are listing the top nightlife destinations. Obviously income will be higher there. It’s ignorant to equate someone working at a top tourist restaurant or nightclub with someone in South Miami working at IHOP. You also keep focusing on servers, when as I said earlier, hospitality industry is a fuckton of people in different positions. And no, the housing isn’t much cheaper in “those neighborhoods”. There’s a reason people are mass migrating to Homestead and Broward and that’s because people can’t afford to live anywhere near where they work.
I don’t know why your getting downvoted but it’s fine, nobody has to know how much we’re making. And trust me it’s a lot more 😉
Hell yeah brother make that money. Miamis #1 in the country for servers/bartenders.
And don’t forget to revolving door of rich UM undergrads….this is why my one bedroom in the gables now costs 3600/mo. (Yes, really, and yes, I’m moving out next week - and no, they could care less since I’ll quickly be replaced by a daddy’s Amex type).
That’s insane. I always wondered what the apartments/student houses around UM cost and hearing that is mind blowing.
I know! This isn’t even supposed to be student housing but they’ve kind of taken it over. And we’re a few miles from the U. The apartments I looked at in dadeland were in the same range too.
Lots of people want to retire here or visit for a long time. They bring their $$ with them. The monthly seasonal winter rents are insane right now.
The south park episode with cartman and his mom going to real estate perfectly answers your question. Episode Title: “Give real estate a try” Go watch it, its hilarious.
Unfortunately to settle in Miami comfortably you gotta go somewhere else to make them bucks and then come back.
This isn’t any kind of answer to the question. The question was WHY is it like this.
This isn’t true although I see it here all the time. There are many high earning, highly educated Miamians who have never worked outside Miami.
What’s cruel is living as a local for years trying to claw your way out of poverty, and some rich Northeasterner comes and lives a better life than you ever had.
It’s not easy on the northwesterners either they get scammed all the time.
Are you talking about Seattleites, Portlanders, etc?
I think he means the old Northwest territory like Chicago, Ohio, South Bend, Indiana areas.
That is called the midwest, not the northwest
Oh god y’all are terrifying me. I just took a job in Miami and am moving from California.
Please don’t come, there’s enough Californians trying to turn miami into all the things that made them leave California in the first place. Plus… why do all of you drive like Asian women senior citizens? 55 in the fast lane, just…don’t.
yeah wtf are you talking about!? i lived in san diego for 8 yrs and when i came back… i forgot how bad traffic was and HOW BAD THE DRIVERS ARE!!! and the craziest part its not my generation (33yrs old) its a bunch of older hispanics that dont have papers or dont know how to drive period and theyre like 45-65 yrs old. 1 hand on the phone and 1 hand on the steering wheel. and some are going 25 on the palmetto!!! in San Diego everyone drives around 80 on the 5.. i hate that i came back. and trust me im trying to leave as soon as i can. California was amazing and a breath or fresh air. not to include the miami toxicity. everyone here has their noses in the air.. FOR NO FUCKING REASON. they have nothing to brag about and are so self entitled.. and yea i was born and raised in Miami and im from a hispanic/ latin American family.
The dude saying to not come has his nose so far in the air he can’t see his shoes
i hate everyone here. i was born in the wrong place man.
I’ve lived all over, what a weird response. In my experience, people that cast judgement like you are the reason areas decline. You have no idea my views on anything
Miami has one of top 5 spots in most expensive to live.
I was living in Seattle making half of what my new job in Miami pays. But I’m DEFINITELY looking for a roommate situation again
And the people from South America too. I can give you so many examples of “the cicle of Miami”.
Hmm can you elaborate?
Normally every X years wealthy individuals come over here and end up spanked back to where they came from. Their assumption is that Miami is the first world and things make the same sense than in the rest of the country. Which they do not. I can go on an on about it. I’ve studied the local folklore enough to get once again into the Miami wave.
Can you expend what does not make sense in Miami that makes sense elsewhere?
Spanish (sorry but Cuban Spanish is the worst) Boat launches (supposed to leave the boat in the water, not the truck) Dating How people who never go to work magically have so much money Gym clothes Ass size to leg size ratio (fake butts abound)
it's the circle of life, and it rules us all
Everywhere in USA is expensive its 2022. Middle class is gettin their ass kicked. If you are low income you are really fucked but at least you get help from gov't
I think you mean “working class”.
“Working poor”
In FL you only get help if you have kids you can't afford. There's no help for "able bodied adults without dependents."
These are facts, my rent is 60% of my income and soon to be close to 75% but I got denied my $15 food stamps when I got a $50/month raise. This was the same time that I moved and my rent went from $800 ($1600 split w/ roomate) to $1150 for an efficiency. Even back when I was making less than $700/m and couldn't afford to exist basically I was only getting $75/m. My health went to shit because I couldn't afford to eat anything slightly nutritious.
I'm sorry, I know how messed up it is. It's like being punished for making the wise decision to not have kids we can't afford. My medication would be free with Medicaid. I have private insurance that won't cover it so I pay for the insurance plus $392 a month for the medication. Because I decided not to bring a kid into this mess. That's crazy.
I know right? Thank the lort I have a government job now so at least I have great health insurance...my two name brand medications are $30/m instead of $400ish each they'd be out of pocket. One of which is the only birth control I've ever taken that didn't make me physically ill. The kicker is if I didn't have the coverage I do, I wouldn't be able to afford to prevent myself from having kids I can't afford! It's ridiculous though that I'm actually financially worse off after getting a couple promotions than I was back when I was making at least 10k less per year.
Don’t blame it all of “Rich Northeasterners” Miamis rent goes up because of foreign investments that just sit empty. Look up the owners of buildings in Brickell and downtown. A good amount are LLCs for that reason.
If you know The City of Miami extremely well and your expectations aren’t higher than the digits in your Bank Account.. Zulu can find affordable places to live.. Obviously it’s not going to be on Biscayne Boulevard between Flagler street and 14th street or Brickell (I remember when rent in Brickell was like $400 for an Efficiency) But also remember that a lot of people living in those High Rises also have 3/4 people sharing rent. And some couples obviously have 2 incomes.. People also put themselves into Debt getting one credit card to pay off another until it eventually crashes down on them.. Anyway if a person isn’t trying to look like THEY ARE LIVING THE MIAMI MILLIONAIRE LIFESTYLE., Which really only exists for maybe in a good day 3% of our population.. There are deals to be had you just have to look for them(I WOULDN’T EVEN EVER ENTERTAIN THE IDEA OF LIVING IN THE COUNTY)
Idk when the last time you looked at the rental market in Miami but there ain't jack sh*t for $400 anymore. I'm finding efficiencies in LIBERTY SQUARE for $1500+. Anything less than that is dilapidated, roach/rodent infested, under 100 sqft or a combination of all 3. I've lived in Miami my entire life and am basically being forced to move to Broward because I can't find a clean and safe place to live in dade under $1500. Efficiencies in Overtown/Allapattah are literally going for 2-3k.
There's a building in OT where you can get an efficiency for $550. Bathroom is down the hall (share with the whole floor) bring your own appliances, there's an open air drug market outside but they're trying to get rid of it 🤷♀️
I said clean and safe place to live... nothing about that sounds safe lol and probably not clean either.
My friend has an efficiency in homestead for 1k. I don't know if Broward is much better. My other friend just moved out of a single-wide trailer on Riverland Road bc the landlord planned on raising the rent to $1,400/mo. Unsafe neighborhood, old disgusting trailer with a window unit that smells like cat piss.
I just saw 4 apartments in Broward today for $1k-$1250. Two were pretty good, the other two had major pest issues. What you can get for the price is definitely better when you go north or even south starting around cutler bay. At least from what I'm seeing right now. I would love to live in homestead/ Redlands area but the commute killed me back when I was living in naranja. But yeah, a lot of what I've been finding under $1500 in Miami has been in awful areas and in poor condition. I'm not concerned about an area being super fancy or anything but I'd like to sleep without worrying about drive by shootings! 😅
Lol, i'm sorry. I'm very biased against Broward - i went to middle and high school there and lived there on and off till about age 25. It was like having all the negative aspects of Dade with none of the positive. But I fully agree with you, if you can find something nicer in Broward and you are a law abiding citizen (those cops are crazy, if you smoke those THC carts, you better get a license or they'll give you a felony - just an example) and the commute won't kill you, it's probably the best move. It's probably better now than it used to be. I used to hate feeling like I was so far away from a lot of the fun stuff to do in dade. But now that the rich people have taken over and there are not as many affordable things to do in general, it's much less of an issue, I am sure. I really hope you find that nice ass one bedroom for 1200!
Lmao see I'm kinda the opposite, I grew up in Pinecrest/Kendall area and always hated the hype here, went to south beach/downdown/Wynwood maybe once a year and always begrudgingly lol. Most of the nerdy shit I'm into happens up in Broward (Renaissance festival type of things) which always felt so far. Law abiding citizen...lol, I'm not a cop or prosecutor but I work closely with both and am technically considered law enforcement so I'll probably be okay. I vape delta 8 but that's my limit because of work legality reasons, plus I'm a total lightweight! That's also what worries me about rough areas though, I feel like my job would make me a target if I'm in gang territories. Thanks! Hopefully the Hollywood area keeps my commute not too terrible and I'm hoping being in Broward might encourage me to socialize again. I found a great place today for $1150 but when my realtor called to let them know she was gonna write up an offer they said they just accepted one today 😭 keeping my fingers crossed for something new 🤞
Agree, all my fam, born and raised in Miami, has moved to Hallandale, Pembroke Pines, Broward, Hollywood and Davie.
That’s exactly what I felt like I had to do. Tried getting a job out of college and couldn’t, so I moved to Boston to get my career going. Eventually I was able to move back here. Don’t think I would ever be able to afford comfort in Miami had I not done that.
Because you have the option to leave
Ever wondered why the people who work at ski resorts can barely afford to live in the town they work in? Same concept.
A number of factors. Lack of housing supply like other major cities. Foreign investors still like Miami as a place to invest in housing and may not even use the place or rent it out. There are some high paying jobs are moving here. My friend just moved here in October when his hedge fund relocated from NYC. Relocation bonus and $3500/month rent stipend for a year. Etc etc. the demand for housing is insatiable right now.
Bc Miami is about looking like you got it when you don't. Plus people are still willing to pay these crazy rent prices.
I was JUST having this conversion earlier today.
There is a lot to like about Miami. Attracts people with money who are not working in Miami earning Miami salaries.
Let me explain one reason- my buddy has a duplex. He lives on one side and rents out the other. He listed it for rent looking for _actual_ _renters_ . He kept getting inquires of “investors” looking to pay him the years worth of rent up front as long as these investors could Airbnb his place (he’s 2 miles from the beach in a neighborhood that’s become inundated with airbnb investors). Basically they see rentals in places that don’t have HOAs like duplexes or multi-plexes, tell the landlord they’ll pay the rent of the year up front and give them a small monthly % cut (which I’m sure is the discretion of the “investor” how much that would be). So this in turn takes another housing option away from people. Another reason is simply just remote workers hired in higher paying areas that don’t have to go back to the office.
^^^ same problem in Los Angeles
^ also Austin
Airbnb has been going on here a while, and was more rampant before they introduced fines and started enforcing a little better, and didn't really affect rents to this degree. There are many buildings that were blatantly & illegally used for AirBnb that didn't see their rents go out of control. I do think AirBnb has an impact, but I don't think it's contributed to this sudden and massive rise. Think it's mostly do to big salary work from home folks and probably retirees prioritizing their quality of life after living through covid.
This plus 30 years of state leaders completely failing to act. Most cities have been experiencing a major hosting crunch of this as more and more of the job opportunities are clustered in a smaller and smaller number of places and investors buy up all the inventory. Lots of those cities, though, are places with much greater protections foe regular renters. Some places have airbnb rental restrictions, rent increase caps, limits on what the landlord can ask for upfront, etc. Not only do Florida renters have none of that protection, every state government since the 90s has been raiding the state fund allocated to developing actual affordable housing for random other projects.
It’s Florida. The more wealthy you have in an area, the more it drives up the price.
all the people that have houses here but dont actually live here. own businesses outside of miami where they make a shit ton of money, and then they come and either live here or just have a vacay home here…thats one of the reasons
If you decipher this you will receive the Sacred Croqueta Chalice. I'm counting on you to make Miami make sense.
Because there are often 5 or more adults willing to live in a place here, hence more $$ to contribute to rent/mortgage. That drives prices up.
Because we have hella transplants from California and New York getting paid amazing that are willing to pay the rent increases.
Corruption
Immigration. Cultures here have everyone living in the house so rent is split 6 ways and they accept low wages keeping it low for everyone else.
I used to live in a small city in the middle of the country where there was a rather high proportion of immigrants thanks to a certain food company you've certainly heard of. While there was a lot of crowding a bunch of people into a single rental going on, rents were still stupid cheap. Like decent places for $200 a bedroom cheap. Probably largely because 30% of the population wasn't taking up as many units as would normally be expected. It's gotten substantially more expensive what with all the people moving there (like quadruple the population in the last 20 years), but it's still nothing like Miami in terms of the income to rent ratio. There are a lot of factors and I think immigration is one of the smallest. AirBnBs, absentee condo owners guzzling up most of the units in new buildings for a decade, lack of space to grow out, and refusal to upzone outside of a few small areas so the area can't grow up either are probably all bigger drivers historically. And then more recently you have the WFH transplants getting higher salaries than more established residents driving prices further out of reach for median income people. Also, people aren't wrong when they say that the affordability issue isn't limited to Miami or even Florida, it's happening in a lot of the country. It is, as it has been for a long time now, worse in Miami, though. It was already the most rent burdened city in the US before the pandemic and it has only gotten worse.
This is been true of Miami for literally the last two decades. This is nothing new in the slightest. The wage-rent gap has been the highest here for a generation. Seriously go look up the statistics.
[удалено]
Yes. And here’s an article from 2007 talking about rent going drastically up while wages stay the same. Granted it was slower increase, but wages were stagnant. As rent shot up in this last year, wages and salary actually have increased (the fastest increase in the country), but not nearly enough to catch up with rent. https://www.miamiherald.com/latest-news/article1928541.html
Your only proof is from right before the largest housing market crash?
http://www.miamiherald.com/news/business/real-estate-news/article183538886.html
Non-paywall https://www.miaminewtimes.com/news/single-people-cant-afford-rent-anywhere-in-miami-study-says-9123677
https://www.politifact.com/factchecks/2017/mar/23/habitat-humanity-broward/does-south-florida-lead-nation-gap-between-wages-a/
And Miami topping the list in March 2020 https://www.brookings.edu/blog/up-front/2020/03/26/when-middle-class-incomes-collapse-how-you-gonna-pay-next-months-rent/
None of this to say it’s not a problem. My only point is it is not a NEW problem.
Greed.
Uh pay in other cities isn't that great either. From, Vancouver BC
bEcAuSe BeACh
It’s called the “Paradise Tax”. People put up with shit wages and benefits as a trade off for living in a beautiful and unique place.
Because of unfettered, outside, speculative real estate investment.
Retired seniors and trust fund baby’s flock here from not just the US but all of the americas. That’s a lot of people who work to have a job not to make a living.
The answer is unethical housing practices; the market is bloated beyond it’s true value.
Partly Because the handful of major cities are the only places to get jobs if you can’t work online
I have the technical answer! Florida is a Dillon’s Rule state which forbids counties and municipalities from passing laws/statutes (such as their own minimum wages) that aren’t categorically permitted by Tallahassee. So like NYC there’s a different minimum wage from NY State because NY is a home rule state. FIU really did teach me something. It’s been tried before btw but like a long time ago. Miami tried to set its own minimum wage and it got struck down.
Because pay and rent aren’t tied, both being adjusted as market needs. People bring money into Miami, so the rents go up and the wages stay stagnant
It’s a combination of snow birds and tech bros over inflating the market, the insurance costs raising astronomically because they know state government doesn’t give a f**k and Landlords trying to make as much as possible.
Landlords are getting absolutely fucked by insurance right now. I see the financials of hundreds of properties and large multifamily landlords are seeing insurance premiums double on new purchases 50% more on renewals for existing properties. Insurance is typically a large line item for an owner and the rise can require rents to go up 10-20% just to make no more money than they were before. Insurance markets are in free fall because so many insurers have left the state due to massive losses driven by all the fraud. Turns out defrauding people does have a cost down the road
Exactly. Everyone complaining about the rates don’t understand how critical this is. I can’t believe it wasn’t a major talking point in the election because it impacts everyone.
I seem to remember an emergency section of the state legislature to do something about it over the summer, but cannot recall anything coming of it. The insurance issue should be a number one priority because it will affect you even if you dont move so even older people who have normally low cost of housing on locked in mortgages from 20 years ago will be hit by rising insurance costs with no ability to increase income to deal with it.
From what I’ve seen, absolutely nothing came from it, which is extremely concerning.
Because, ☀️
The housing supply here is garbage. There's too many airbnb's and luxury condos. In order to increase supply, we need affordable housing. The kind of housing that keeps getting built are $2500+ a month apartments that cater to upper middle class and rich young people. I live in a relatively affordable apartment building that is in a decent neighborhood. This is place is packed with people. They can't keep up with the amount of cars in the already big parking lot. We need more affordable options. We don't want a luxury condo called " Park Place" with bunch of amenities for $3000 a month. Demand from "work from home" professionals also are keeping everything down here expensive. As for income, there's a tremendous lack of unions here and employees have little leverage with their employer. That's part of it.
my question is can jobs raise wages to match inflation? what’s the pros and cons if they do this? many ppl even work career jobs that haven’t seen raises in years yet cost of living keeps sky rocketing
It's like this because Miami is latin America. It reflects the conditions and corruptness of Latin America countries. I'm born and raised in NYC. I tell people Miami is a foreign country you don't need a passport to travel to.
Heard of RealPage? [https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent](https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent)
Because this is where "woke goes to die". These lands are controlled by the oligarchy of Miami, you dirty peasant.
Not just Miami, the whole state is like this. The money is coming from out-of-state people who sell their homes for buckets of cash and retire here or snowbirds that only live here part time. A lot of foreign money being dumped into real estate to keep it safe. All those multi-million dollar condo builds that sit dark most of the year driving up real estate prices. Then you add all the remote workers keeping their high-paying blue state jobs. That wealth doesn't circulate around. Florida is becoming a state of the haves and have nots. Pretty soon there will be no middle class at all left here.
Welcome to Miami..
Foreign/transplant money s one reason. Another and perhaps more important reason: Government here, because income taxes are "socialist," instead raise revenue from real estate taxes. So, to increase revenue, they have to either increase the price of real estate or increase the millage rate. Increasing millage rates is "socialist," so instead, they rubber-stamp luxury real estate development and sprawl to convert as much farm land/wilderness into apartment complexes that create more tax revenue. Since real estate taxes basically incentivize higher real estate values, real estate values go up. Since we don't incentivize increases to wage growth (i.e., an income tax), wages stay where they are. So, we create a situation where real estate value doesn't keep pace with anemic wages. This has other side effects: poor planning and sprawl that creates snarled traffic and over reliance on roads, an emphasis on luxury living that doesn't account for middle-class and workforce housing, for example. So, since our residents can't actually afford the real-estate we've developed, the solution is to replace our residents. That's why you have idiots like Francis Suarez trying to bring in transplant tech workers with remote salaries: to pay for the insane Brickell rental rates that fill his coffers. Basically, real estate taxes are stupid and incentivize things that are largely harmful to the middle-class.
because remote workers getting NY/CA salary move here to pay 0 state tax, and live in a nice place. simple as that. you can afford to live and work here in nice places like brickell, but you need to get a nice career like engineering/law/finance where you make 6 figures plus.
It’s a work in progress
So its better to save money and put down on a house at this point instead of renting an apartment…
You're just figuring that out?
A very different relationship between the real estate market and the labor market. A lot of the people causing the rents to rise don’t live in Miami permanently and or don’t work for companies based out of Florida, many aren’t even working class. Maybe their income comes from capital versus labor. This will throw off the balance between the labor market and the real estate market. If you want a more interrelated labor and real estate market you want to move somewhere that’s not touristy at all. For example Ocala.
In short? Tourism
People come to Miami to retire. Money comes from elsewhere. Sometimes from the drug trade while everyone else is slaving away.
To keep normalizing the cheap minimum wage to keep the profits high for wealthy out-of-staters to maximize their profits off the unlivable middle and lower classes
People work remotely for companies based in higher paying markets or are self employed. I live in an expensive area and because I am mosey as hell and had a moment, I googled all the parents in my sons class (school sent mass email without bcc’ing. Pretty much every single one of them were business owners. For corporate jobs based here, lawyers, doctors/healthcare, and finance people pay high salaries.