Economic growth is the best it's been twelve years but that doesn't begin to tell South Florida's story:
Bottom Line: Anyone who was in South Florida during the housing boom and bust cycle knows what drove South Florida's economy. It wasn't really tourism - it was housing and everything that went into it. At the peak I remember a story that illustrated the dislocation in the local economy perhaps better than anything else. The median full-time household income in Florida was $40,535 entering 2005. The average income for a roofer was over $100,000 due to a shortage of roofers. The comparison isn't designed to slight roofers but to illustrate how lopsided our local economy had become in favor of anything housing (against the realities of everything else in our economy and everyday life).
As many remember we reached the point where the average family making the median income literally couldn't afford to purchase a home in South Florida as median home prices jumped above $400,000 (at least without creative - now illegal mortgages - being used). That was the crystal-clear illustration that our local economy wasn't really healthy or sustainable. So, while 2005 was the last year we experienced 3%+ economic growth nationally and locally - that's where the similarities stop. Florida's existing economy is the healthiest it's been since the late 90's currently. Unlike the 90's, our local economy is far more diverse than it's ever been.
Here were the top five categories for job growth in Florida in 2017:
- Statisticians (average wage $63,000)
- Construction (average wage $35,000)
- Medical (average wage $88,000)
- Web / Digital Development (average wage $61,000)
- Biomedical (average wage $77,000)
Paints a much different picture of Florida's labor market doesn't it? Yes, the construction and medical categories are well represented which is still a staple of a strong local economy but what about the other three? Finance, digital development, science & technology. Additionally, four of the top five pay well above average salaries. That's the story of the Florida's new diverse and sustainable economy. Yes, tourism and its related jobs are a huge part of our story. Yes, our real-estate is still desirable, but now our economy can now support it...the average family can purchase a home without gimmicks and there's plenty of evidence that the momentum nationally will only continue to disproportionately benefit Florida, especially South Florida. With the average family set to see a 7%+ income in retained wages this year we've likely not had a combination of a healthy economy, diverse opportunities and meaningful income growth.