Silver lining of the housing bubble: brats in Miami can afford luxury condos…awesome, NOT!
Jul 13, 2010
July 13, 2010
The housing bubble ruined many lives. It left some would-be retirees without that pension they counted on, created a massive number of foreclosures, and ultimately made the entire world financial system collapse. But hey! Every cloud has a silver lining. And that lining is a bunch of kids that can now afford a condo in downtown Miami.
One Floridian, a 25-year-old tax accountant working at Deloitte LLP, pays $900/month for some pretty awesome features (i.e. unobstructed waterfront view, wraparound balcony, gym, spa and a steam room. He has roommates, to be sure, but still! Luxury living for a 25 year old for $900/month on the waterfront? WOW!
“Five years ago you wouldn’t have kids fresh out of college living in luxury like this,” said Klein, sitting in front of the 24-hour concierge in the three-story lobby of his building at 50 Biscayne Boulevard, coordinating happy-hour plans by text message.
Ugh. Sounds a bit annoying to me. Anyway…
So why can they afford it? Developers are lowering prices, sometimes up to a 40% discount, in a desperate attempt to get someone– anyone into their units! Occupancy rates were up to 74% in February up from 62% in May 2009. In addition, the population of Miami’s urban core has gone from 40,000 to 70,000 since 2000.
And while developers are suffering from lower prices than they anticipated pre-recession, the influx of young renters is helping out the downtown businesses.
But developers recognize they were a bit hasty in their rush to develop Miami’s downtown core.
“We were trying to build a city in perhaps what was too fast a time period,” said Jorge Perez, chairman and chief executive officer of The Related Group in Miami, which build more than 6,500 units in the greater downtown area.
You can say that again, Jorge. Well, thanks to spoiled recent graduates, the Miami downtown is being propped up through the recession. It’s a win, win situation. But it’s a tad annoying. I don’t want to sound like a curmudgeon, but texting to make happy hour plans during an interview? He sounds like a bit of a jerk to me. And a whole downtown made up of these people? I don’t want to move there, but then…maybe I just have a case of the sour grapes.