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Miami Herald
30-07-2025
- Business
- Miami Herald
The financial gap between renting and owning has grown. In Miami, that's an issue
With high mortgage rates and stubborn home prices, many Miamians are questioning whether homeownership is still within reach. For many, it is not. In May, owning a single-family home cost an estimated $2,086 more per month than renting one in Miami-Dade County, according to data from Miami Realtors. In May 2018, seven years ago, that gap was just $138. For condos and town houses, today it costs $811 more a month to own than to rent, but even that has changed since 2018, when owning actually was cheaper, costing $233 less per month. Does that mean renting is a better financial deal than owning? Not really, real estate experts told the Herald Editorial Board. Buying is still a better decision. But because many people cannot achieve that piece of the American dream, they are also losing out on a major long-term benefit of homeownership — achieving and maintaining middle class status. That's also the focus of the Editorial Board's series The Shrinking Middle. 'Homeownership is the best way to accumulate wealth,' Miami Realtors Chief Economist Gay Cororaton said. Although owning a house may cost more monthly, homeowners build equity over time. With home values dramatically rising in the past years, the 15-year equity on a single-family home in Miami-Dade was more than $550,000 based on the median sales price in 2024, according to Miami Realtors. While your rent may change, mortgage costs are fixed as your home becomes more valuable — assuming it does. Of course, that doesn't take into account how the high price of property insurance has made homeownership costs more volatile even for longtime owners. Still, Cororaton said, 'If you can afford it, don't think that it's cheaper to rent.' That's if you can afford it. The cost gap between renting versus owning is an indicator that many people are left out of homeownership, forced to rent because they cannot afford to own, which, in turn, drives up demand and prices for rentals. That's bad not only for families' financial future, but also for Miami-Dade. Homeownership typically means more community and civic involvement. Areas with more homeowners tend to have less crime, said Eli Beracha, director of the Tibor and Sheila Hollo School of Real Estate at Florida International University. 'When you own a home, you simply care about a neighborhood,' Beracha told the Editorial Board. Based on a median single-family home sales price of $675,000, the monthly cost of a mortgage, plus taxes and insurance, is $5,656, according to Miami Realtors. The median rent for a house, as of May, was $3,600, which isn't necessarily affordable, either. Miami has become a hub for millionaires since the pandemic, but more than half the people in the county are living paycheck to paycheck, the Herald reported. A family of two adults and two kids needs about $90,000 per year to afford basic needs, according to United Way. Even if you make enough to afford the basics, homeownership might still be beyond your reach. Only 3% of single-family homes listed for sale at the end of May were what Miami Realtors consider 'affordable,' meaning they cost less than $400,000. In 2019, those homes represented 30% of listings. Is the option then to wait until prices go back to what they were pre-pandemic? Probably not. The Fed is expected to resume its interest rate cuts in the second half of the year, according to Cororaton, and home sales have dropped and prices have stabilized after a post-pandemic high. But Cororaton and Beracha don't believe prices will drop significantly. That probably means that many people will continue to be locked out of homeownership and subject to price fluctuations in rents that could eventually push them to leave South Florida, where the American dream of homeownership continues to elude a large share of our population.
Miami Herald
23-07-2025
- Business
- Miami Herald
As Florida DOGE looms, Miami-Dade faces budget cuts and the mayor hits a crisis
Miami-Dade County Mayor Daniella Levine Cava told the Herald Editorial Board in May that a 'perfect storm' of financial headwinds were to blame for the county's $402 million budget shortfall. There's a lot of truth to that statement. Some of the challenges facing the county were outside local control, mainly the costs of complying with a 2018 state referendum that forced Miami-Dade to turn some of its departments, such as police, into independent offices run by new elected officials. But, as we wrote in May, Levine Cava and the 13 county commissioners who must approve the budget every year rode high on rising property tax revenues and $1 billion of federal COVID funding that's now dried up. They should have had more foresight. Now Levine Cava is suggesting budget cuts for next year that she said will be 'very painful,' the Herald reported. Miami-Dade's budget woes also might turn out to be politically painful, especially for the mayor, the first major test she's faced in two terms. Since Donald Trump's return to the White House, the frenzy to cut programs has reached all levels of government. The newly-created Florida DOGE — fashioned after the Trump administration department responsible for firing thousands of federal employees — is auditing spending by Broward County, Gainesville and other communities. Gov. Ron DeSantis said it is 'very possible' that Miami-Dade could be next, the Sun Sentinel reported. The Florida DOGE is more about politics than fiscal responsibility. It is targeting programs that promote diversity, equity and inclusion (DEI) and that are aimed at responding to climate change, a central issue for Levine Cava. Perhaps foreseeing these political headwinds, she eliminated two top environmental positions in county government, chief resilience officer and chief heat officer, both of which earned six-figure salaries. She also re-organized and reduced the department in charge of climate change response as part of her cost-cutting measures. With more cuts to come, the pain will be felt by the most vulnerable people and organizations in Miami-Dade. The mayor is proposing cuts across county departments, including $40 million in nonprofit funding, closing two senior centers that her administration says are 'underperforming,' with only about two dozen people using them, and closing three places where older residents can get free meals, which are also described as 'underperforming.' Grants for small businesses and arts organizations, which already lost state dollars last year, are also on the chopping block. Of course, few causes can be spared when budget cuts become inevitable. and there should be few sacred cows. But where was that mindset when the mayor and commission in recent years approved $46 million in direct funding and free services for the soccer World Cup when it comes to Miami in 2026 — $36 million of which will come due in the 2026 budget, according to the Herald. Just two months ago, Levine Cava endorsed the latest $10 million subsidy installment for the Cup and acknowledged that may lead to service cuts. Certainly, managing a budget the size of Miami-Dade is a difficult, thankless job. Since her election in 2020, Levine Cava, a former county commissioner and nonprofit founder, has faced few major crises. One of two Democrats elected countywide, she occupies a nonpartisan office and has managed to remain non controversial despite Miami-Dade's rightward shift. Her handling of the Surfside building collapse and her initiatives to help people affected by South Florida's housing crisis have earned her community goodwill. She was easily reelected last year despite criticism about county spending from her main opponent, Manny Cid, a Republican and former mayor of Miami Lakes. In January, Levine Cava appointed Cid as the county's senior advisor for economic opportunity, a great display of her ability to reach across the aisle but one that cost taxpayers $200,000 per year for his salary. She's now proposing to eliminate the department where Cid works. Fiscal management does not rest only with the mayor of Miami-Dade County, but with the county commission as well. But, politically, Levine Cava will be the one blamed or celebrated for how the county deals with this great challenge. The pressure has never been greater. Click here to send the letter.
Miami Herald
21-07-2025
- Business
- Miami Herald
Owning a condo has become harder after Surfside. Here's what to know before you buy
The latest reports about Miami-Dade County's condominium values show that a once hot market has now become more favorable to buyers. Overall, condo values dropped 1% as 2025 began compared to a 9% growth the previous year, the Herald reported in July. Steeper drops were seen in cities closer to the coast such as Aventura and Miami Beach while some communities still saw prices rise. But buying a condo — especially one that's decades old — feels like a risky proposition after the state imposed stricter maintenance and financial reserve requirements in response to the 2021 Surfside building collapse. The new safeguards are critical. The Champlain Towers South condo that fell in the middle of the night, killing 98 people, is a tragedy that must never happen again. The increased maintenance costs associated with the new laws have resulted in a softening condo also leaves prospective buyers in a tough spot, as they consider both safety and finances, wondering: Will I be hit with large special assessments and higher associations fees after I move in? These are important considerations given that Miami-Dade's condo inventory skews older. Of the 315,600 condo units in the county, 48% of them are at least 30 years old, according to a 2024 report compiled with data from the Florida Division of Condominiums, Timeshares and Mobile Homes. That 30-year mark is important because that's when the new laws require so-called milestone structural inspections to make sure buildings are safe, inspections that also are needed every 10 years thereafter. Ryan Poliakoff, a condo association lawyer, told the Herald Editorial Board that he hasn't seen restoration projects in older buildings that cost less than $5 million total. For an individual condo unit owner, that could mean a sudden bill for thousands in maintenance costs in the form of a special assessment. The Legislature this year gave associations more flexibility in meeting the new state requirements. But the long-term commitment of living in a condo still is more complex than before Surfside. That doesn't mean buying a condo is a bad idea, especially with prices dropping and expected to drop further, according to condo analyst Peter Zalewski. Still, here are some things you need to know first: Know before you sign: This is important if you're buying a 'vintage' condo — that's what Zalewski calls units that are at least 30 years old: First, the condo association must have completed the 30-year milestone inspection, if applicable, as well as a 'Structural Integrity Reserve Study' signed by an engineer, which is required by law every 10 years to determine the necessary reserve funds for future repairs and replacements. If this hasn't happened yet, then you'll be 'rolling the dice,' Zalewski said, as you can expect special assessments in the future. Or, you 'really need to negotiate' the selling price to make up for future expenses, he said. One thing to know about special assessments: If a building has 'gotten hit with a special assessment, understand that is the first special assessment. There are going to be additional ones,' Zalewski told Community News in to ask: Poliakoff said buyers should ask for the condo association's budget (check to see if reserves have been kept, which is now required under the law); the building's maintenance history and the last time it underwent concrete restoration; and whether there are any planned special assessments or discussions about it. The seller might not disclose an assessment that hasn't been approved, so it's important to 'ask around' if you Ask for an 'estoppel letter,' which must include an itemized list of all special assessments and other money owed by the to look for: Poliakoff advises walking around the building. Not every structural problem is visible to the naked eye, but look for signs of concrete spalling, which happens when reinforced steel rods known as rebar in a building's support beams rust and expand, a common consequence water intrusion. That visible results may be chunks of concrete missing from external walls, he the building has a garage: Check to see if there are formations hanging from the ceilings like a cave's stalactites, which can signal water intrusion, Poliakoff said. Pay closer attention to garages that are located underneath a pool, as was the case with the Surfside building, because they are especially vulnerable to water intrusion. These are just general tips and each purchase will require personalized professional advice. But the message is: Do your homework before you buy and understand the financial risks of condo living post Surfside. Click here to send the letter.
Miami Herald
14-07-2025
- Politics
- Miami Herald
Miami commissioners gave themselves an extra year in office. It's time to do this next
Miami voters don't always get enough of a voice in how their own city is being run. Take the vote on elections last month, for example. City commissioners decided to move the election date from 2025 to 2026 — and extend their terms on the board by a year — in the name of moving elections to even-numbered years to increase voter participation — a seemingly good idea for which the Herald Editorial Board has advocated. The problem is the commission didn't ask for permission from the voters, many of whom were understandably outraged at the idea that elected officials could just decide to stay in their jobs for an extra year — and get another year of salary, courtesy of taxpayers. The power grab, as many characterized the decision, not surprisingly, spawned national headlines. One would-be 2025 candidate, whose plans were upended by the change, has already filed suit. Miami Mayor Francis Suarez, who benefits from the change, quickly signed the measure into law. But there's some better news for voters. Earlier this week, commissioners passed a proposal, 3-2, to allow voters to decide in November whether to impose a lifetime term limit on the city's elected officials — two four-year terms as mayor and two four-year terms as commissioner. There is a loophole in the proposal that should be noted, and it's one that could allow some legacy politicians a chance to run again. The wording of the proposal specifically excludes 'any time served as a result of having been elected to fill a vacancy.' That means Commissioner Joe Carollo, a highly controversial figure, could run for mayor again. He has already served two terms as mayor and multiple stints as city commissioner, dating back to 1979. But because he won his first term as mayor in a special election (to fill the vacancy created by the death of Mayor Stephen Clark in 1996), he would, under this new proposal, still be eligible to run for mayor one more time. Also potentially affected by the loophole: Xavier Suarez, another former mayor. Xavier Suarez — whose son is Miami mayor now — served three terms in the 1980s. But only one of those was a four-year term, opening the door to another run for him as well under the proposed term limits. Those are important caveats for voters to understand, since they are the ones who will be deciding the term-limit question in a special election this November. That the decision rests in the hands of voters is a very good thing. Term limits are a good idea that voters should approve, but there's another proposal for a change in the way Miami is governed that we think is more important: expanding the number of seats on the city commission. The Editorial Board has advocated for this for several years, including as part of our Miami Dysfunction series of editorials. The idea that Miami, a city of almost 450,000 people, has only five commissioners to represent its residents defies common sense. We believe Miami's City Commission must grow from five districts to seven or nine to put in on par with other cities of similar or even smaller populations. Tampa, for example, with a population of about 400,000, has seven city council members, four elected in districts and three at-large. The change is also needed because the current structure — five commissioners, each elected in a single district — isn't working. Anyone who has seen the temper tantrums and in-fighting on the dais — embarrassing displays by our leaders — knows that the frequent 3-2 votes on the commission mean one person can hold enormous power. Diluting the power with a bigger board would help. And if districts are smaller, Miami residents might get more responsive representation out of the deal, too. A local citizens' group, called Stronger Miami, has been gathering signatures on a petition in an attempt to get the question on the ballot in November. But it shouldn't take a petition drive for Miami commissioners to start taking this idea seriously. If they can vote themselves an extra year in office, surely they can entertain the idea of expanding the commission so it better represents the people. Click here to send the letter.
Yahoo
14-07-2025
- Politics
- Yahoo
Why we should worry about Trump's de-naturalization effort. Here are 5 takeaways
The Trump administration wants federal prosecutors to make de-naturalizing foreign-born U.S. citizens a top priority. While this practice isn't new, there's real concern it could now be used less for justice and more for politics. FULL EDITORIAL: Becoming a US citizen no longer enough to escape Trump's immigration crackdown | Opinion Here are the highlights: The classic cases of de-naturalization involve lying or fraud on immigration forms, like hiding Nazi ties or fake marriages. The worry is this policy could now target people simply for their political views or minor errors. A new Department of Justice memo suggests crimes committed after getting citizenship could trigger de-naturalization. This is a legally questionable move, as the Herald previously reported. The new DOJ guidelines raise fears that vague rules give prosecutors too much power, risking the process being used as a political weapon against critics or opponents of the president. Civil court proceedings make it easier for the government to try to strip citizenship, with a lower bar for evidence. A federal judge still has the final say but this process can wreck reputations and create chaos in people's lives. The Herald Editorial Board believes de-naturalization should be extremely rare and reserved for only the worst cases. Using it as a political tool, rather than a last resort, is dangerous and undermines the values that citizenship is meant to protect. The summary points above were compiled with the help of AI tools and edited by journalists in the Miami Herald newsroom. The full editorial in the link at top was reported, written and edited entirely by Miami Herald journalists.
