Boom Induced Media Euphoria
Miami’s construction boom was covered heavily by the national media. People were fascinated with the pace in which new buildings were being proposed and constructed. In mid 2005, USA Today reported on how the Miami market was hot, hotter, and hottest. By that time, the surge in construction had been gaining momentum since 2003. It wasn’t early in the game. The good news kept coming though. Also in mid 2005, NBC News aired this hyped up piece about the boom. NPR weighed in with their own boom outlook. Late in the same year, ABC News reported on the condo craze. Mind you, this was just before the downturn began.
The reports were spread far and wide and were all, for the most part, positive. Everyone seemed to be contributing to the buzz; from the Christian Science Monitor to the NY Times, CNN Money, CNBC, and Time Magazine.
Shit Hits the Fan
Then as flippers made their mass entrance into the market, the supply soared, prices began to fall, and foreclosures rose. Doom and gloom engulfed the media:
- Investors flee [NY Times]
- Boom goes bust again [New Times]
- Housing Mania will end in tears [MSN Money]
- Florida Housing Shakeout Epicenter [WSJ]
- There’s trouble — lots of it — in paradise [Time]
- Miami is #2 Most Over Priced Real Estate Market [Forbes]
- Miami is #1 Riskiest Housing Market [Forbes]
- The last speculators [Forbes]
- Boom Goes Bust [Nightline]
- Real Estate Fool’s Gold [Nightline]
- Dead Zone [Fortune]
Forbes loves us, but ABC News’ Nightline is creeping behind in second place with their Miami fascination. Unexpectedly, Time magazine is lagging behind the two, but expect a come back. It begs the question: is Miami being underestimated or was it over hyped?