Manhattan-izing South Florida

When I moved to South Florida nearly four years ago, I'd imagined escaping harsh upstate New York winters. I envisioned days spent on the beach, sipping pina coladas, watching tanned men parade on the sand. I hadn't counted on the unsettling sounds of a jackhammer at a quarter to seven, most days of the week.

If it weren't for those sounds, I may have decided to retire, right then, at 21.

As the months turned into years, I found myself jarred from sleep as buildings erupted into the already overcrowded landscape. And with these new luxury condos, many averaging a cool $700,000 for a one bedroom apartment, I began to wonder if social security is defunct because we're giving seniors way too much spending money. ( Scroll to the bottom of this site to see a comparison in Hallandale of real estate prices from 2003 to 2004)

But the old face of South Florida is changing, as a younger immigrant crowd is washing onto our shore. There are fewer and fewer senior citizens arguing over coupons at the local Publix grocery store and more nightclubs along the beach, even in communities once known for their elderly population. The joke when I first arrived was when you saw an ambulance it meant another condo just went on the market (ie. someone's died)...but nobody makes that joke today.

I spoke with several realtors as "The Beach Club" began to put its first 55 story tower up on the corner of East Hallandale Beach Blvd. and South Ocean Drive in Hallandale. The larger tower is complete and now the other two smaller towers, only 43 stories each, are going up.

A realtor with Century 21 said "The Beach Club" apartments are going for: $450,000 for an unfinished studio (you have to paint it and put down the floor), and between $700,000 to $800,000 for a one bedroom (depending on the floor - the higher the floor, the higher the price tag), and two bedroom apartments are way over a million dollars. The monthly maintenance fee will be about $1,000 a month.

The realtor said most of the buyers he has worked with are immigrants, many Russian, who are purchasing multiple apartments, which they will sell after construction. The idea is to buy pre-construction at a lower price, then mark the apartment up after the building is completed. It seemed like a good idea.

Except, I'm wondering, who will be in line to buy these already pricey apartments once the construction has been completed. South Florida has a reputation for a low cost of living, but that's because the wages aren't very high.

According to the "LABOR REPORT ON THE STATE OF FLORIDA" published September 1, 2003 by Bruce Nissen of the Center for Labor Research and Studies at Florida International University:

"Florida has a large concentration of workers earning very low wages. As of 2002, 3.3% of the state's workers earned less than the national minimum wage ($5.15/hour, or $10,700/year), and 3.8% earned either the minimum wage or less. This is much higher than the national averages (2.2% and 3.0%) and somewhat higher than the regional averages (2.8% and 3.3%).

The number of Florida workers earning less than $8.00 per hour (well below the poverty level for a family of four) was also high. Almost twenty seven percent (26.9%) of Florida workers were at this level of the working poor -- higher than either the national or regional averages. And almost 40% earned less than $9.00 per hour, or under $18,720 per year. In all these respects, the state was below both national and regional standards."
( Labor Report on the State of Florida 2002 by Nissen )

So, what does this boring statistical data tell us -Most of the people living and working in South Florida are not making big money. Having worked here for the past four years, this is no surprise. I made more as a part time secretary when I was 16 on Long Island (New York) than I do now as a 25 year old "Administrative Assistant."

As my peers and I are entering into our last courses before graduation, we've finally begun to think beyond the next semester and into "the rest of our lives." It's a scary thought because as we contemplate our base salaries, we realize that none of us can qualify for -or hope to afford - a mortgage on a $700,000 apartment, let alone the additional $1,000 maintenance fee. That is completely ignoring insurance, property taxes, and other luxuries, like food.

Maria Fuentes, who became engaged recently, has been searching with her fiance for a home. Her price range, which started at $100,000 has crept higher and higher as she can't find anything available on the market. The places she has seen have been run down and in neighborhoods that would leave her feeling unsafe. Fuentes has begun to search out pre-construction properties in Central Florida, finding large affordable homes. The problem with buying pre-construction, she said, is you can't tell what kind of neighborhood will develop around the property. Her family is here, and it would be a big step to move that far north.

Another classmate said her family would like to move out of their Sunny Isles home and even though they can more than double what they initially paid for the property, they can't afford to buy a bigger place. The prices are staggering.

Howard Steinberg, 34, has been searching for a home since last September. "I started out looking for a home," he said, "but the reality is I'll be lucky if I can get a condo." For Steinberg this represents a step backwards.

"I had a condo, I sold it and bought a townhouse, then I decided to rent and save up for a home -now I can't touch one."

As a bartender Steinberg can't prove his income, which makes it harder for him to get a mortgage. He's considering relocating to a more affordable area, maybe towards Orlando, but thinks he'll just leave the state altogether.

"I can't imagine raising a family here," he said, "I'd rather be a big fish in a small pond, than a goldfish in this ocean." Howard doesn't want to struggle to make ends meet.

"I'm not going to live hand-to-mouth so I can own a crappy condo."

His sentiments seem to be mirrored by other young adults who are thinking of leaving South Florida for more affordable housing.

One couple from New York, Yana and Igor Rozenshtyn debated moving to South Florida, but after the real estate boom went back to house hunting in New York. Yana has just finished dental school and Igor is a successful computer programmer. They want to settle down and start investing in their future, by purchasing property. Now they are considering Georgia or North Carolina.

"If I'm going to have to pay New York prices," Igor said, "I may as well stay in New York where at least I'm making more money."