Miamians Can't Afford to Buy Condos in Miami

Categories: Unreal Estate

Miami_skyline.jpg
In news that isn't particularly new but is worth repeating, the Miami Herald reports that most Miamians can't afford to buy units in of all those fancy condos being built at breakneck speed around town. Most buyers are wealthy people from Europe and Latin America who purchase units as investments or vacation properties (Miami real estate is, after all, the World's hot new currency), and developers, still wary from the last boom-and-bust cycle, require hefty down payments before the buildings even break ground.

See also: Miami Rents Are Wildly Unaffordable for Average Residents

Last time around, real estate speculators snatched up units in the preconstruction phase but walked away once the market crashed. Now many developers require large cash down payments, as much as 50 percent, before the buildings are even completed. Most Miamians can't afford it and have a hard time finding banks to finance that kind of deal.

"We don't have a local market capable of making those kind of payments and progress payments," Lewis M. Goodkin, president of Goodkin Consulting, told the paper.

Of course, as those condos rise, they also push up the rent and property value in existing properties where locals live, forcing many out. (Sorry, Edgewater residents.)

See also: The Average Miamian Can Afford to Save Only $18 a Month

Ironically, many foreign buyers may try to rent their units back to regular ol' Miamians, but rents could be so high that few could afford them. Of course, technically it is cheaper to buy than rent in Miami, but developers' down payment conditions make it awfully difficult to buy.

"The real challenge is to attract more [good-paying] jobs. People need to perceive Miami as a serious city," Carlos Rosso, the condo development division president of Related Group, told the Herald.

Unfortunately, this is not a "if you build condos perfect for yuppies, they will come" situation.

Follow Miami New Times on Facebook and Twitter @MiamiNewTimes.

My Voice Nation Help
220 comments
sweetliberty17761776
sweetliberty17761776 topcommenter

so what


people work at MB dealerships and cant afford a Benz



get over it lefty

frankd4
frankd4 topcommenter

....i am really surprised to see so many who are apparently NOT tuned into why america sees MIAMI as false - it is NOT a community or neighborhood with any nucleau family value or other than party central

corrupt politicians do NOT want resident voters who will demand municipal services and financuial responsibility - DID YOU KNOW THE FEDERAL GOVT HAD TO SUE MIAMI-DADE COUNTY TO PROVIDE CLEAN WATER to its residents ?

DRUG KING PINs are the perfect buyers for these condo units = period= they make the pay-offs to the cops and developers make the kick-backs to the corrupt politicians = why change that ?

drug king pins do NOT ask for schools libraries museums medical facilities OR honest cops or honest politicians - they just pay the bills and don't ask questions = period

WHY SHOULD THOSE living off of the public taxpayer funds want residents who will vote and demand a claen government and honest cops and all tthe necessary community services and municipal amenities ?

frankd4
frankd4 topcommenter

..............corrupt politicians do NOT want "neighborhoods"

why would a corrupt MAYOR / commissioners want residents who will demand municipal services from them AND accountability ?

IF you were the MAYOR / commissioner taking bribes and kick-backs from developers wouldn't YOU want those units sold to buyers who do NOT vote here ?

drug king pins are the PERFECT buyer for the developer AND the politicians = period

a drug kingpin unit owner will not demand a school or a library or an honest accounting of taxpayer funds - all the kingpin needs is corrupt cops and hispanic speaking household help who will keep their mouths shut

Adner Arana
Adner Arana

Hahaha. Sad but true. Is nothing but a name but in reality florida has plenty of better beaches, communities, parties, people, schools and the list goes on and on. Miami doesn't rank on anything which is sad. I'm in siesta key right now and I must say is awesome.

Eugenio A. Alonso
Eugenio A. Alonso

Why would you, Condo Associations will steal all the money anyway.

Kenneth Carrera
Kenneth Carrera

Should be reporting about the lack of new affordable housing in miami. Investigate that.

Kenneth Carrera
Kenneth Carrera

Ever since the first cranes went up we all knew this. Why is this news???

Daniel E Romañach
Daniel E Romañach

I think there are options you just have to look for them. I am a realtor working for a developer that cares about Miami and creates an amazing product with great location and amenities thinking of the local community. We are currently working at a pre-construction project with numbers that make sense. I'm a local and i'm buying here! 1 bedrooms starting at $200,900 Maintenance $257.40 2 Bedrooms starting at $274,900 Maintenance $341.64 to $380.25 3 Bedrooms starting at $364,900 Maintenance $458.64 Townhouses starting at $384,900 Maintenance $570.96 Call me for details 305.206.8031 Daniel Romanach Sales Executive Cervera Real Estate www.IntownCondos.com

Homer Steel
Homer Steel

Can't wait to get out, of this over-priced, humid ridden and plastic city.

Ai-Quoc N. Heller
Ai-Quoc N. Heller

Then what about New Yorkers in New York who have to live with 2-3 roommates?!

Regina Vasquez
Regina Vasquez

There are still plenty of affordable condos with low HOA fees. I should know, that's my job. CTS Limo, please show me all those empty condos in Miami Beach.

Christine Karaki
Christine Karaki

$400 month in maintenance? Try more like $700-$800 for those high rises. My townhouse in Kendall is $481 for HOA fees.

Cts Limo Cts Limo
Cts Limo Cts Limo

Most of the condos downtown & Miami Beach are empty! People who live & work here cannot even afford the rent never mind to purchase it, the cheapest condo is $200.000 and the maintenance is probably $400 per month most people can't get a loan unless they put down 40-50% down, it sure is living gor the upper middle & the wealthy class

Lilia Knox
Lilia Knox

Tooooo expensive \U0001f61e\U0001f61e\U0001f61e

Wenceslao Fernandez Jr
Wenceslao Fernandez Jr

Every builder seems to have forgotten this segment of the market, only building 100% luxury and giving nothing back to this city which is helping them get richer, simply by also building quality, affordable housing units for the locals to enjoy, nor do they contribute to #masstransit solutions to help relief transit and parking.

David Mojica
David Mojica

I heard overtown has some affordable condos

Alvaro Rodriguez
Alvaro Rodriguez

Those condos were built for wealthy rich narcos or mafia not for us. Miami put your feet on earth, the golden cocaine cowboy years are gone, we are real people.

Heather Rogerson
Heather Rogerson

I am leaving, and I have a decent career! I'm a nurse , sadly if you aren't bilingual opportunity is scarce . N Florida offering me much higher salary and cost living is lower....go figure.

Sid Kaskey
Sid Kaskey

I cannot afford a private jet either....

Joveline Pettus
Joveline Pettus

Hence why there is no sense of community...and the city is so shady....this article was spot on.

Julio L. McMahon
Julio L. McMahon

You can only live in over town if your from the downtown area lol

Lara Mars
Lara Mars

If you want to live affordable....Miami is not the city!

Millie Santana
Millie Santana

....and the Condominium Association fees are out of hand!

Kalo Escobar
Kalo Escobar

If they made affordable housing they wouldn't be foreclosed on every other year. Miami isn't for the average joe. . .

Samantha Claire
Samantha Claire

Good thing for ussss Farah Tamaddon-Dallal Danny Goldberg

Familia Ramirez
Familia Ramirez

No more condos...build affordable housing. There is no sense of community here.

Christine King
Christine King

Actually raising the minimum wage stimulates the economy, creates more jobs and is of benefit to everybody. The fastest growing economic cities in the US are those where the minimum wage was increased. I unfortunately just had to close my business on South Beach after 21 years and am now appalled while looking for part time work while I launch some new projects at how little jobs pay in this town. Something has got to give.

Erik Ace SobeArtist
Erik Ace SobeArtist

no kidding its always i mean ALWAYS been about the outside crowd even 1930's Sobe was for the outside crowd! Doral, sunny isles, key biscane and the list goes on of "cities" in miami dade county that are ment for outsiders!

frankd4
frankd4 topcommenter

.....its not only the MONEY the buyers have..........its their NON-VOTING status...... a drug king pin doesn't get involved in municipal services neither does a snow-bird care about local schools and libraries ect.so these units can be sold to visitors and guests who have no control at all over corruption and transparency in taxpayer funds = period

frankd4
frankd4 topcommenter

....no corrupt politician wants a neighborhood rooted with voters who demand municipal services and financial honesty - which is why the international drug king pin is the PERFECT buyer of these luxury high-rise condo units = period

frankd4
frankd4 topcommenter

...well IF you are a corrupt politician or a developer OR a drug king pin.YOU can live it up pretty good here !

considering we ALL die at some point anyway maybe living a false life for a dozen years and then going to jail is better than years of drudgery and poverty

who needs community ? when you're a crook you rather would NOT have neighbors asking questions - right ?

frankd4
frankd4 topcommenter

...that's a B I N G O !

julia TUTTLE from cleveland, fisher from michigan, lummas brothers from PA.....to PEREZ from cuba and thomas kramer from germany

retired olde jews and marieltitos have given way to south american drug kingpins and canadien industrialists

TRANSPLANTED MONEY (the one exception is cruise ship owner arrison) comes from elsewhere and is BLOWN away here - era after era after era

Now Trending

Miami Concert Tickets

From the Vault

 

Electronics

Loading...