Miami Inflation Ranks Highest in US (rent, insurance, house)

[elchevere]

https://www.bloomberg.com/news/artic...kXqYBnOQg_nvVY

“ Miami’s annual inflation rate of 7.4% in October was the highest of the US metro areas tracked by the Bureau of Labor Statistics, and more than double the national average

Much of the stickiness of inflation in Florida appears to be driven by people and businesses relocating to the region, boosting spending and demand for homes and energy.

Florida’s low taxes and sunny weather have made it a magnet for people to relocate there, from billionaires like Ken Griffin to retirees. Large financial firms such as Griffin’s Citadel financial empire, Goldman Sachs Group Inc. and Blackstone Inc. have brought in new workers who are well compensated and pushed up prices.

The Sunshine State’s outsize inflation stems from its population growth, which rose faster than any other state last year, and a housing shortage that’s stretched for at least five years”

[Corrie22]

friend in Miami said he just rented a house to a Citadel employee......$8,000 a month

[MiamiLIFE]

Originally Posted by elchevere

https://www.bloomberg.com/news/artic...kXqYBnOQg_nvVY

“ Miami’s annual inflation rate of 7.4% in October was the highest of the US metro areas tracked by the Bureau of Labor Statistics, and more than double the national average

Much of the stickiness of inflation in Florida appears to be driven by people and businesses relocating to the region, boosting spending and demand for homes and energy.

Florida’s low taxes and sunny weather have made it a magnet for people to relocate there, from billionaires like Ken Griffin to retirees. Large financial firms such as Griffin’s Citadel financial empire, Goldman Sachs Group Inc. and Blackstone Inc. have brought in new workers who are well compensated and pushed up prices.

The Sunshine State’s outsize inflation stems from its population growth, which rose faster than any other state last year, and a housing shortage that’s stretched for at least five years”

As the cost of living in Miami continues to increase there will be less reasons to move here. That's ok, it's part of a maturing city. Cost to live in Miami will be on par with the big cities across US. Reasons to move here will be more related to live style, political environment, and opportunities that might not exist somewhere else. Cost benefit is becoming neutral to negative. Property taxes, rent, home price, insurance on par or higher than many major cities now. I live here for the weather, access to the beach, cleanliness, and international vibe. My rent not cheap, but still less than what I would pay in NY and I have a bigger apt, amazing amenities, walking distance to many things, and a 15 minute drive to beach.

[elchevere]

Originally Posted by miamilife

as the cost of living in miami continues to increase there will be less reasons to move here. That's ok, it's part of a maturing city. Cost to live in miami will be on par with the big cities across us. Reasons to move here will be more related to live style, political environment, and opportunities that might not exist somewhere else. Cost benefit is becoming neutral to negative. Property taxes, rent, home price, insurance on par or higher than many major cities now. i live here for the weather, access to the beach, cleanliness, and international vibe. My rent not cheap, but still less than what i would pay in ny and i have a bigger apt, amazing amenities, walking distance to many things, and a 15 minute drive to beach.

Yup.

[hindsight2020]

Originally Posted by MiamiLIFE

My rent not cheap, but still less than what I would pay in NY and I have a bigger apt, amazing amenities, walking distance to many things, and a 15 minute drive to beach.

I've always been fascinated by the concept of price elasticity on these discussions. To wit, for people like you who resemble the "this is fine, nothing to see here" remark, is there any price at which you'd consider the choice not 'worth it'? I'm not being facetious, I sincerely wonder if there is a price point that would kick you off the pot. If so, what's the geographic alternative that you hide under your sleeve? Expating?

[CXT2000]

Funny seeing this, yet Miami is following similar patters that S.F/NYC have before their mass exodus' happened. Only difference is those cities are truly established (obviously, since they're old). In-flow of capital is always needed, but Miami's reliance on "unlimited" growth and trickle-down economics will not benefit people in the long term.

Poverty rates have gone up, along with the income gap, so again, wondering the long term implications of this. Seems like there's a lot of simps for the ultra wealthy going to Miami/Florida on this form, but when majority of the population do not benefit, there's no reason to celebrate (and this is coming from a 1% er)

[MiamiLIFE]

Originally Posted by hindsight2020

I've always been fascinated by the concept of price elasticity on these discussions. To wit, for people like you who resemble the "this is fine, nothing to see here" remark, is there any price at which you'd consider the choice not 'worth it'? I'm not being facetious, I sincerely wonder if there is a price point that would kick you off the pot. If so, what's the geographic alternative that you hide under your sleeve? Expating?

Yes of course there is a point where the cost/benefit would not make sense and then I would move again as I did when I left NY. But, at this time even with the price increases here I am still paying less than I did in NY for a lifestyle much more in alignment with my sensibilities. If Miami becomes unsustainable I would look to another emerging location or maybe go abroad. I am not locked in to anything. Ultimately, Miami's price increases are a natural outcome of the migration and the maturing of the city. Things will level off at some point and from there I will have to access if it still makes sense.

[elchevere]

Originally Posted by hindsight2020

I've always been fascinated by the concept of price elasticity on these discussions. To wit, for people like you who resemble the "this is fine, nothing to see here" remark, is there any price at which you'd consider the choice not 'worth it'? I'm not being facetious, I sincerely wonder if there is a price point that would kick you off the pot. If so, what's the geographic alternative that you hide under your sleeve? Expating?

I’ll let MiamiLife (who moved here from NYC) give his answer but as someone who moved from coastal CA after 33 years (and could have easily afforded to remain there), my “turn off” will happen when I see a deterioration in QOL such as scores of homeless tent cities popping up—including and especially in the nicest areas of Miami, not just freeway underpasses, lesser desirable areas, etc—half the stores in Design District, Merrick Park, Brickell City Centre and elsewhere are boarded up and/or go out of business, mass car break ins and riots take place then it will be time to look elsewhere. In the meantime, many successful restaurants, retailers, etc are following those who have moved here; doubtful they would be coming here or expanding if there was not enough demand / people to support them. They didn’t become successful by going out of business and/or not knowing their markets from lack of due diligence.

Besides COVID, the 2017 Tax Reform Act is attracting folks to Miami/SoFLA and even with the increase in COL it still remains a bargain relative to other, comparable coastal cities (newer buildings, more square footage, more building amenities, less issues plaguing than those other cities). Until / if the issues noted above hit Miami I will continue to call it home.

[CXT2000]

Originally Posted by MiamiLIFE

Yes of course there is a point where the cost/benefit would not make sense and then I would move again as I did when I left NY. But, at this time even with the price increases here I am still paying less than I did in NY for a lifestyle much more in alignment with my sensibilities. If Miami becomes unsustainable I would look to another emerging location or maybe go abroad. I am not locked in to anything. Ultimately, Miami's price increases are a natural outcome of the migration and the maturing of the city. Things will level off at some point and from there I will have to access if it still makes sense.

I'm truly curious about your line of work/salary and where in NYC you lived in.

[Corrie22]

Originally Posted by hindsight2020

if there is a price point that would kick you off the pot.

those costs usually do not operate in a vacuum....

costs would go up all over.....if you over price something you don't sell it