There has been a lot of buzz about all of the people leaving the state of Florida because of the economy. In a 2009 article in Time Magazine, the Exodus was blamed on rising taxes. Journalists noted the high cost of living especially in Miami versus the low levels of income.
Miami-Dade, Broward and Palm Beach counties — lost 27,400 residents between 2008 and2009, while Florida as a whole lost 58,000 residents. That many people leaving the state, hasn't happened in 63 years. The taxes isn't all that is causing big problems in Florida and that brings us to the focus of this post. Florida is plagued by one of the worst housing markets in the country. There is a record number of foreclosures. One would think with so many properties available and so few jobs that the rentals of these properties would be at an all time low to bring back residents and residents who own buisnesses to stimulate this economy. That isn't what is happening.
Take a look at the houses for rent on Miami.craigslist.org. There are some ads that claim to rent houses for 600, 700 and even 900. In this economy, that is what these houses are worth. Bogus Barrister has been inquiring about these rentals and we have found that almost all are owned or being managed by realty companies. The realty companies have a monopoly on what should be affordable housing. They are jacking up these monthly rentals on behalf of private owners so that the companies make a huge profit every month. The real estate agents are contacting private owners when they see their rental ads and have convinced them that with their help, they can rent out their property for them and get them a higher monthly rent.
We have noticed that the rents have doubled. It is a sad state when a one bedroom house in the ghetto will run you a minimum of $1400. Let me point out that the low prices that these people advertise in these ads, do not exist. All of those rent to own ads are equally bogus. The bankers and these real estate agents are exploiting the record number of foreclosures. They are using the low prices to lure potential customers. They claim to have a list of houses or apartments available in different price ranges but they won't talk to anybody unless they are looking to spend at least 2200 a month. These people are also trying to charge renters a fee of over 100 just to have access to their list of rentals. The Bogus Barrister has inquired about rental prices in all other states and there is no other state that has such outrageous rental prices.
People cannot afford to live there and so they won't. That's the bottom line. Bankers and real estate agents don't care if people can't afford to keep their homes. They'll just evict the tenants and find another.