Wednesday November 14, 2007

2002 to 2006: cost of living increases, housing costs increase faster, average wage flat

A startling graph, taken from This FIU study [pdf]. Covered here. Related: residents forced out as trailer parks close. I still say this will drastically improve over the next 6 to 18 months, and there are sub $1000 and sub $600 rentals around, but damned if the numbers don’t speak for themselves.

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  1. b.a.c.    Wed Nov 14, 09:22 AM #  

    Would be interesting to see a graph of high level executive compensation packages and how they have changed over the yeras vs the employees that work under them



  2. mae    Wed Nov 14, 10:12 AM #  

    Alesh, in the earlier post about Fisher Island, you said people should move away if they want to force the market to produce better wages. However, I think this study proves that people are moving away who can’t afford to live here. The lowest income people are being priced out of the City. The City is dealing with eliminating poverty by simply supporting a market that has incredibly high rents, taxes, etc. so poor people can’t stay. We don’t actually live in a free market. Our local government is supporting policies and regulations that are actively “changing” i.e. gentrifying neighborhoods.



  3. alesh    Wed Nov 14, 11:28 AM #  

    mae~

    I believe more or less in the free market, with some limited government intervention, but on the light side.

    The transformation in say, Midtown, is driven by lots of forces, but mostly by a natural evolution having to do with a nation-wide movement towards living in the city center. As such, it’s a good thing, with the negative side-effect that the poor people are priced out of that neighborhood.

    This is where you would expect the market to step in and, e.g., build low-income housing developments in more outlying and lower-priced parts of the county. This obviously hasn’t happened to nearly the extent it should have, clearly a lack of foresight on the part of developers (blinded perhaps by the dollar signs they saw in the high-end condos they were building). But I believe it will self-correct, both as developers look for new markets to exploit, and as rents/sale prices of exsiting condos drop due to lack of demand.



  4. Eric    Wed Nov 14, 06:27 PM #  

    that study is a fascinating read, but all it does is stress me out as I see my rent rise while my salary stagnates and my (Fortune 500 listed) employer can’t see why I can’t afford to continue living in Miami.



  5. DR    Wed Nov 14, 06:57 PM #  

    Tables A-3 and A-5 are amazing. And b.a.c – search the NYT website for that executive compensation info (its free). I saw an article awhile back. Disturbing.



  6. Mae    Thu Nov 15, 08:25 PM #  

    But Midtown isn’t a natural thing that happened in a free market. If it was, people would be But Midtown isn’t a natural thing that happened in a free market. If it was, people would be rushing to it. Instead its a highly subsidized project ($100 million of city money) that in fact had its own Community Redevelopment Agency (CRA) created for it, which are scandal plagued entities where commissioners fund pet projects. Even the creation of the Midtown CRA has very shady roots. Midtown is part of a City created housing bubble, that they then let crash. Even you reported that the owner of Midtown wants out of the project because its such a false creation, plopped into a real community by a City that wanted it. Link to your coverage: http://criticalmiami.com/index.php?id=700

    The obvious truth is that the City regularly interferes with the market, but it’s always for the benefit of billionaires. I think its one the greatest guises of our time to have us thinking we live in pure capitalism or a free market. It’s highly regulated to fuck us over!



  7. Laurent    Fri Nov 16, 05:45 AM #  

    Aren’t you happy there are 10 or 20k more condos priced at around 500k whereas at the time there were only apts priced over 1m$..I am taking about great serviced apts..not shady houses in the hood..

    Know you can have young executives able to afford 2k a month so that you can have a real workforce in offices with middle management living ion those “nice towers” …like in NY,,,

    come on it s all about creating what didnt exist…you cant blame that on them..you ll get the benefit…someone with an ugly house that used to cost 200k will cost 300-400 and those who wotrk for companies will live in suberb condos w nice pools and amenities…

    i wish every city in the world had the guts to destroy what was ugly asnd rebuilt everything nice on new grounds like midtown.///look at france and its suburbs some buildings and areas should be destroyed but there is no guts no will and no private public partnership to do so…