S. Florida’s rent crisis nation’s worst
Report shows costs a crushing burden
South Florida’s affordable rent crunch isn’t just bleak. It’s the worst in the country— again.
Nearly two of three renters in Palm Beach, Broward and MiamiDade counties are devoting more than 30 percent of their incomes to housing costs, according to a report Friday from the Joint Center forHousing Studies atHarvard University.
The analysis also reveals that more than a third of renters in the region— 34,200 households— are “severely burdened,” spending more than half of their incomes on housing.
South Florida has had the highest shares in both categories for at least the past four years, the center said.
“If you’re a renter today in South Florida, you’re probably paying between40and 60 percent of your income on rent,” said Edward “Ned” Murray, associate director of theMetropolitan Center at Florida International University. “That’s just not sustainable from an economic perspective and a quality of life perspective.”
Tepidwage growth, higher land and construction costs, increased demand for rentals and rising home values all have contributed to the affordable housing situation in South Florida, experts say.
“The [South Florida] metro has above-average housing costs and below-average incomes,” said Daniel McCue, a senior research associate for the Harvard center. “The lack of affordable housing is a growing concern.”
While South Florida’s rental housing stock has increased 24 percent in the past 10 years, the share of units renting for $1,000 a month or less has declined by 12 percent, theHarvard study found.
Andit’s not just renterswhoare struggling. The report shows that more than a third of owner households in South Florida are exceeding 30 percent of their incomes when it comes to mortgage costs and related expenses. Only New York, Los Angeles and Bridgeport, Conn., areworse.
The rule of thumb is that consumers should spend no more than 30 percent of their incomes on housing costs, analysts say.
When middle income workers spend too much on housing, it likely means they don’t have enough money for other necessities, said JaimieRoss, CEOof the Florida Housing Coalition, a nonprofit group that promotes affordable housing.
“They may not be able to get all the medications they need or the healthiest food they should be eating,” Ross said.
Theaffordability findings in the Harvard report are based on 2015 data, the most recent available.
In recent months, elected officials, business leadersandhousing experts have brainstormed at housing summits in Broward and Palm Beach counties. OnWednesday, Fort Lauderdale officials discussed an affordable housing policy for the downtown.
Proposed solutions include waiving building feesandgranting tax incentives forworkforce housing projects; allowing higher density for developers who cap rents; and building close to mass transit hubs soworkers can save on transportation costs.
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