Paradise lost: South Florida is turning into a bad proposition for many wanting to relocate there
The Miami Herald in an article on SOUTH FLORIDA'S ECONOMY by BY BEATRICE E. GARCIA AND NIALA BOODHOO entitled "Ouch! Cost squeeze tightens" note that the telltale signs of trouble have been in the South Florida economy for some time. Inflation has been rising at a more rapid pace in the Fort Lauderdale-Miami area than nationwide since 2003. Median home prices have more than doubled in the past five years. Medical-care costs have ballooned more than 30 percent in the same period. Last month, two key components of consumer confidence slipped dramatically -- Florida consumers were less certain that it was a good time to buy a major household item, and more had a negative outlook about their personal finances. Note EU-Digest: "The rising costs, we were told by a small business owner, "is not just a result of the recent hurricanes, as some Government officials like to point out, but rather a direct result of corporate greed, and elected officials who are supporting corporate interest groups, rather than the people who voted for them."
If it seems that the costs of living in paradise are out of this world, consider this: New data from the government show that consumer prices in South Florida are rising nearly 50 percent more than the national average. The main culprits: higher energy prices and the booming housing market.
South Florida's rising cost of living could also dampen business expansion and recruitment. Frank Nero, president of the Beacon Council, Miami-Dade's economic development agency, points out that South Florida is still a bargain compared to other corporate centers such as Boston, New York, Los Angeles and even some European cities such as Barcelona. However, he and James Tarlton, his counterpart at the Broward Alliance, fear that South Florida's increasing costs could have an impact.''Our consultants have told us that we need to be more worried about housing affordability than the hurricanes,'' Nero says. He admits that there are certain types of employees that his agency won't bother recruiting, such as workers for call centers, because their salaries are not high enough to meet South Florida's cost of living.
''People have to balance discretionary spending against necessities such as gasoline and electricity,'' says Chris McCarty, director of the University of Florida's Survey Research Center, which tracks Florida consumer confidence.
The outlook for the future only shows more grim statistics: Electricity which already rose by 60% between 2000 and 2005, will go up another 18.5% in 2006. Between 2000 and 2005, the average rent increased 41% in Fort Lauderdale. In that same time-frame the price for gasoline went up 85 %, while health care costs rose 33%. What some considered Paradise is fast becoming a bad proposition.
No comments:
Post a Comment