U.S. Census Data Confirms Dire Lack of Affordable Housing in South Florida
U.S. Census findings have confirmed what South Florida residents already know all too well. Many of us pay more than we can afford for housing, more so than in other places around the nation. The affordable housing crisis here is so acute that many workers are moving to lower-cost areas, and that is something that cannot be ignored, a new Miami Herald editorial urges.
If the pattern continues, the economy could be threatened. Unless local governments and businesses find ways to create more affordable housing, fewer workers will be available to fill needed tourism and service jobs. Businesses that already are hurting from rising property insurance rates and other costs will reconsider their options. Go or stay?
STEEP FLORIDA MORTGAGES
The data show that among large counties, Miami-Dade and Broward County lead the country in the proportion of “cost-burdened renters”, at 64 percent and 59 percent, respectively.
This means that six out of 10 renters are dedicating more and more of their paycheck (often more than 30 percent of their gross income) to housing. Moreover, these are people likely to have trouble buying other necessities. Local homeowners fare nearly as badly, with 54 percent in Miami-Dade and 49 percent in Broward having Florida mortgage loans too steep for their income.
These 2005 figures are worrisome, and will worsen as conditions that fuel the housing crunch continue to intensify. Although home prices have begun to cool, they still stand at record-high levels and beyond the means of many young professionals and middle-class families.
Home buyers who manage to cope with the Florida mortgage face ever larger, sometimes staggering bills for insurance and property taxes.
Shrinking supplies combined with escalating costs have made rentals less available and affordable. Meanwhile, property tax hikes and soaring insurance rates are forcing landlords to increase rental prices beyond affordable levels — or to sell their properties altogether.
THE SEARCH FOR ANSWERS
Even as soaring residential towers continue to pop up in Miami-Dade and Broward County, few units are within the reach of teachers or public servants, much less the service workers whose contributions are needed to support the South Florida tourism industry. The fiasco at the Miami-Dade County housing agency couldn’t have come at a worse time.
Business and government leaders are searching for solutions to this long-ignored South Florida housing market issue. State legislators can help by lifting the cap on the Sadowski Trust Fund, one intended to spur affordable housing. They should also look for practical ways to curb sky-high property insurance rates.
Another option to consider is to give property tax relief to landlords who offer affordable rentals. Local governments should demand that any new housing development include an affordable housing component before giving it the green light.
Only then can we move forward.
