Is Miami becoming over built?

[1979]

Originally Posted by DCkid

If the salary to cost of living cap can somehow be closed, I think the city still has potential. That's the biggest problem. Miami ranks among one of the worst cities for young professionals:

Best Cities For Young Professionals - Yahoo! Real Estate (http://promo.realestate.yahoo.com/Best_Cities_For_Young_Professionals.html - broken link)

When I was at FIU last year, the career services center was telling students to get out of Miami because of the job market.

What would be the reason for this? Too many immigrants? legal and/or illegal? Indirectly, this seems like one of the areas so many are leaving CA? Criminal population, too much heat and humidity? Not enough Fortune 500 companies want to move there?

[tallrick]

Miami went from fun and affordable to overpriced and overcrowded during the cocaine cowboy years. The areas awash in drug money developed, and other areas simply stayed the same. Hurricane Andrew brought a flush of money in south dade, but it was not till the late 90's that the real estate bubble started inflating again. The problem with Miami is that it depends on funny money and "imports" from south and central America and Europeans with money to burn. There is no local economic engine, therefore the relatively small numbers of high paying jobs. Unless the drug trade comes back I see no way that Miami can sustain itself. There are simply not enough people who can afford the overpriced new development and "lipstick on pigs" existing homes asking prices.

[Miami_Dan]

Originally Posted by TannerMan

I have yet to see an unfinished condo anywhere in Miami. If you think Miami has a bad Downtown then you'll be surprised if you dare to step out and travel this country.

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Hmmmmm....you must live in Miami. I did travel the US, 391 days, 30509 miles, 13 months, every state except 3, Canada and Mexico; I disagree. I lived in Miami; I moved downtown during the height of the construction boom in '05 as an employment relocation package. At the time the four biggest jokes about Miami were:

1.> "Living in Paradise - Working in Hell" (beaches & sun verses the people)

2.> "You can walk from Tower Crane to Tower Crane." (inside joke, I guess). Supposedly Miami/Dade County had the 2nd largest population of Tower Cranes in the world next to UAE (not sure if that was true).

3.> "What do they call a white guy in construction in Miami......the boss".

4.> "62,000 units in permitting in to come online by 2007! (residences available for occupancy)....this is going to be one hell of a renters market!"

It takes a minimum of 2 years or more of prior design, engineering, city approvals, drawing revisions, capitalization/funding, presales, etc. before a single shovel breaks the soil. When you see a large structure "topping out" (concrete frame to full height) it is oftentimes the result of more than 5 years of prior work. In other words, the building/s may still be going up downtown as the construction loan (not permanent financing) was approved 2 years ago and the building will be "dried in" (exterior windows, roof, paint, etc.) to prohibit further deterioration due to the weather. RE-Creative financing then results in "moth balling" the building at this "shell dry in" stage where none of the units are actually constructed except for lobbies, elevators, stairwells, etc. bare minimums for fire dept. and safety.

"People moving to Miami" - More importantly, what the employment base with supporting wages for theses +/- 62k units with expensive rents (regardless of the moth balled buildings)? Don't forget these rents may take a short term dip due to oversupply, but in the long run he who owns a condo can anticipate skyrocketing property taxes for financing construction of new schools and infrastructure. Besides, isn't the average family earning something like $55k a year in MeHammy. IT DOESN'T ADD UP, Mi Amigo.

Remember the Resolution Trust Corporation of the late 80's......wait a couple of years. These moth balled buildings will be on the auction block just as then.

.....AND YES - MIAMI DOES HAVE A MISERABLE DOWNTOWN compared to many other US cities with a building boom supported by foreign money and greedy investors who are getting caught in the Great American Real Estate Bust of the 21st century. Aesthetically sad and poorly planned. Look at Brickell...you can't even see the ocean and you are what 4 blocks from the water!

In my opinion - Miami went through a "2nd World" (not 3rd world) societal shift inclusive of government beginning back in the 80's. Look at how the urbanization, planning, industry, citizens, stangnation, crime, education standards, and general quality of life has diminished in "the Wang of Florida". Also does anyone realize that MeHammy has the least amount of park/open area of any American city per citizen? It is something like 28square feet of park per citizen. WTF is that all about.

NOT MANY OTHER CITIES ARE POISED TO SUFFER GREATER FINANCIAL LOSSES....and if I am wrong, please tell me in 2012 <---- oh, that's right....that is the year the world is to end...no need.