I grew up in Miami. Yes, I was born and raised there and am under 40-years-old. One of the few. I love the city. I love the people. I love the Latin flavor of the town, its food and nightlife. I also enjoyed owning and selling a home there in the early 2000s.
Things are different now. Homeowners have been hit with the downside of a strong housing market and have seen prices snapback much greater than some other parts of the country. After seeing a pullback in net worth, Floridians have been tightening their belts this year in some creative and not-so-creative ways.
Today's Bloomberg has an article about how the changes in the Florida housing market are being dealt with by Dolphins fans. Floridians, and Miami residents in particular, are dining out less, seeing fewer movies, foregoing on travel plans, and in some extreme cases, drinking less expensive beer.
According to Bloomberg, Miami real estate prices fell 19.3% year-over-year in January, tied with Las Vegas for the largest drop among 20 metro areas. Some homeowners feeling the pinch are no longer drinking Guinness and Royal Extra beers, but instead buy something domestic and cheaper.
This change in net worth is real and is affecting consumption decisions. While it hurts everyone involved, the process of (trying!) to realign the split between assets and debts is ultimately a healthy one for our country and something, I believe, will help strengthen the U.S. dollar and regain respect for American ingenuity, strength and democratic values around the globe.
Zack Miller is the managing editor of IsraelNewsletter.com ,a former equity analyst for a leading multinational hedge fund, and a proud former Floridian.
Hitting the skids in Florida
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Reader Comments (Page 1 of 1)
3-26-2008 @ 6:37PM
David Huston said...
Well, I'm from Las Vegas, and (even though I don't drink and therefore could care less about beer labels) the Bush Depression is also badly affecting folks here. The people that we elect must believe in government, otherwise no solutions will be proposed that actually improve the (presently dire) circumstances. It's proven, over the last 8 years, to be absolute folly to elect people who hate government, and don't believe that it should function.
3-26-2008 @ 7:32PM
John Huckleberry said...
I too grew up in Miami. Wish I still lived there no matter what has kept me where I am. Hi Marlene, Bob and Doug! Miami will survive as it does a huricane or any other problem. Miami is a town of survivers! So at 49, oye vey, I say hang in there Miami. I wish you well!
John Huckleberry
Hollywood Tonight
3-26-2008 @ 7:32PM
John Huckleberry said...
I too grew up in Miami. Wish I still lived there no matter what has kept me where I am. Hi Marlene, Bob and Doug! Miami will survive as it does a huricane or any other problem. Miami is a town of survivers! So at 49, oye vey, I say hang in there Miami. I wish you well!
John Huckleberry
Hollywood Tonight