Skyscrapercity and Transit Miami report on a visionary proposal for the Miami skyline coming from the drawing boards of Chad Oppenheim. The proposed structure is for the MDC Wolfson Campus. This will propel MDC to the international limelight. The question is: will it be built?
Here are the top ten most over priced real estate markets according to Forbes:
- San Diego – $601,800 (mhp)
- Miami – $371,000 (mhp)
- Sacramento – $ 374,800 (mhp)
- San Francisco – $736,800 (mhp)
- Washington D.C. – $431,000 (mhp)
- Honolulu – $630,000 (mhp)
- New York City – $469,000 (mhp)
- Los Angeles – $584,000 (mhp)
- Boston – 402,200 (mhp)
- San Jose – $775,000 (mhp)
As you can see, Miami has the lowest median home price yet it is number two on the list. Why, then, is Miami’s market the second most over priced market in the U.S.?
Here is the way Forbes formulated their list:
- Using the 40 largest metro areas, we started by estimating a “price-to-earnings” ratio for each market. (Like the P/E of a stock, this value attempts to measure the price a homeowner would pay for one dollar of return.) Using data from the National Association of Realtors (NAR), the U.S. Census Bureau and the Office of Federal Housing Enterprise Oversight, we took each market’s median home price and divided it by annual rents minus taxes and insurance for those properties. (We assumed for this exercise that other costs don’t vary drastically from city to city.)
- We incorporated a second metric: an affordability index. Calculated from National Home Builder Association and Wells Fargo (nyse: WFC – news – people ) data, the affordability score is the percent of the population who can afford to buy the median-priced home, assuming a 6% mortgage rate.
Miami is, according to Forbes, a “usual suspect” in this respect. Frankly, Forbes left something rather important out: the Greater Miami Area. Yes, all 5 million plus residents of it. Here is the difference in median household incomes between the County and the City not including higher MHI in Palm Beach and Broward counties:
New York-based Fortress Investments has acquired Florida East Coast Industries for $3.5 billion in a deal that gives the New York fund management firm control over rail lines that were originally created by Henry Flagler in the 19th Century. The rail lines pass through the urban core of several Florida cities including Miami, and are ideal for the expansion of the mass transit rail system. One of the FECI lines runs through Uptown parallel to Midtown. Armando Codina, principal of Flagler Development, an FECI subsidiary, is the biggest shareholder in the deal.
Map: Blue line represents existing FECI rail line (probable future passenger line) in M&E and Uptown area