There are any number of items that we might include to determine the health of our economy. For simplicities sake, I am selecting to look at employment numbers, home sales and rental rates, and wage statistics. It is my belief that when you see the facts you will acknowledge that while the number of people participating in the workforce has increased that the wages have failed to keep pace with the other economic indicators making our overall economy unhealthy for most families.
According to Jobs & Income – USAFacts in 1948 there were approximately 53.34 Million people working across the USA. In 2022 they determined that 158.29 Million people worked in the USA. That is a substantial uptick over the seventy-four-year period that they charted. However, let’s break that down. Over that seventy-four-year period of time that is only 2.14 Million per year coming into the workforce. I would hypothecate that the early years probably saw somewhat less, and the later somewhat more, people moving into the workforce simply because our population has grown significantly over that same period of time.
When we take into account gender and number in the workforce we see that from 1960 to 2020 there has been a rise in both genders working with the men outpacing the females between 1960 and 1990 and the gap closing somewhat thereafter. It is interesting to note that they show the employment-population ratio as being the same in 1948 as it was in 2020 at .57.
Now, let’s take a look at wages and median incomes. The Real Median household income in 1984 was $55,830 and in 2021 it was a mere $70,780. So, over a period of thirty-seven years, the Median income only went up $14,950 or $404.05 per year. That is pathetic when you consider how much the cost of goods and services has gone up. How does this measure up to home ownership?
When lending rates were low people were able to afford a better home for their hard-earned money. In the last year interest rates have doubled and so have home prices making home ownership impossible for all except the rich in most parts of the USA. I find this tragic. For example, the median prices for homes across the USA in 2016 were about $250,000 give or take and in 2020 that same home was nearly $360,000.
Over the last decade, there has been a 282.35% increase in housing prices in Florida. Florida in 2022 saw an increase in home values at about 53.28%. In the past year (2023) with the rate of interest increasing, there has been an appreciation rate of 26.35% in Florida setting a record for 79.63% appreciation over a two-year period. Can we sustain this?
In the past five years, there has been an 80% increase in housing prices in Florida where the median home price in 2022 was $420,000. There has not been this incredible increase since the housing run-up and flatline in 2006-2008. As of March of 2023, the average home price in the state of Florida is $383,063 which is up 8.2% or so from 2022.
The largest segments of buyers in Florida are Columbian at 33.5%, Brazilian at 30.7%, Canadian at 25.1%, Mexican at 6.7%, and Chinese at 3.9%. (Florida Foreign Investment Statistics Source: NAR’s )
Over the last decade, there has been a 282.35% increase in housing prices in Florida. Florida in 2022 saw an increase in home values at about 53.28%. In the past year (2023) with the rate of interest increasing, there has been an appreciation rate of 26.35% in Florida setting a record for 79.63% appreciation over a two-year period. Can we sustain this?
According to 100+ Statistics Florida Housing Market [2023] (homeabroadinc.com) the most inflated home locales in Florida are – Sarasota, Miami, Fort Lauderdale, Homosassa Springs, Palm Bay-Melbourne-Titusville, Punta Gorda, Vero Beach, Sebastian, Port St. Lucie, Crestview, Fort Walton Beach, Destin, Cape Coral, and Fort Myers. I would add St. Augustine to that mix.
Most market forecasts do not think prices in Florida or elsewhere will dip and interest rates are slated to rise more too. While this is good news for investors who delve further into the housing market ensuring they can make a smooth killing on resales or rentals it is awful for the individual who simply wants to realize their dream of home ownership. They are seriously being left out in the cold unless they have very deep pockets and the vast majority do not.
I’d say the moral of this article is that unless you have a lot of money stay away from Florida and that is coming from a Florida resident since 1982.
Resources:
Historical Home Affordability in the United States (dqydj.com)
100+ Statistics Florida Housing Market [2023] (homeabroadinc.com)
Florida Foreign Investment Statistics Source: NAR’s