Good News for us South Floridians

I just read some excellent news posted on Herald.com. The headline read, "Gap between home prices, income widens in Florida." Isn't that wonderful?! Gives us all hope of ever owning a home here. The estimated median household income in Florida is $43,982. The article does not state what the median price of a house in South Florida was but I can make an educated guess that it is lingering at around $300,000. The average mortage for a household making $43k a year would be no more than $120,000. There is a gap there of $180,000. How do they expect us to make up that difference? Are we going to start to see 60 or 70 year mortages?

The problem needs to be fixed, pronto. The higher prices also affect rent prices, commercial properties, etc. Which means that our employers are also having to pay more money to keep an office here. Which means there is less profit. Which means there is less of a chance for a substantial raise. House prices go up 30% while we get a modest 2% or 3% cost of living bump in our salary. As property values go up, rent will usually follow. Eventually there will be no profit and no more job. What is going to happen then?

Then what happens when the person renting the apartment realizes they can sell it for much more than what it can rent for. They get to sell their property, turn a profit and not have to deal with a tenant any longer. Why not sell? The new owner then raises the rent, who then sells to the next highest bidder, who then raises the rent, and up and up. Eventually pricing everyone out of the market.

I really love this city. No really, I do.