Miami Has the Sixth Most Troubled Housing Market
Hey Richard Florida of the Daily Beast, what depressing ranking of cities do you have for us today? Oh, "The 20 Worst Places to Sell Your Home." Delightful. Unsurprisingly, Miami came in high on the list.
The listings take into account the cities with "the biggest debt and housing problems" and are based on three factors:
•Negative equity--percent of mortgages where owners owe more than their homes are worth.
•Loan-to-value ratio--total Mortgage Debt Outstanding divided by Total Property Value--both from Core Logic.
• 20 Recession Proof Cities· Monthly mortgage cost-to-income ratio from the U.S. Census American Community Survey.
The Miami-Miami Beach-Kendall area, as it's termed here, came in at number six. But it's not the worst in Florida. The Orlando area came in at number three. Tampa comes in at number seven and Jacksonville at 11, which gives Florida a depressingly high number of appearances on the list.
"At the height of the boom, real estate, housing, and construction-related industries accounted for more than a quarter of the entire economies of Las Vegas, Miami, and Phoenix, and 30 percent of Orlando's, as I note in The Great Reset," writes Florida. "It was like a giant Ponzi scheme, fueled entirely by debt. The hardest-hit Sun Belt metros lacked the underlying economic heft to support their skyrocketing housing values; some of them may never recover."
As for the worst area on the list -- the dubious distinction goes to Riverside-San Bernardino-Ontario, California.
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