Monday, August 07, 2006

Priced Out

A reader sent this Bloomberg article our way. Teachers, cops and other civil servants are having a hard time affording living in the areas that they work down in Florida. I'm sure the same applies at the Shore. In fact, I bet the huge population growth of Ocean County over the past 10 years or so is because Monmouth County became unaffordable for so many.

Aug. 7 (Bloomberg) -- Beth Ireland gave up after spending a year looking for a $300,000 house in Naples, Florida. She quit her job as a nurse manager and moved to Pittsburgh.

``It's nuts,'' said Ireland, 54, who left in June. ``When all is said and done, we can't afford to live in Naples.''

Naples, on the Gulf of Mexico in southwestern Florida, boasts more than 130 art galleries, posh hotels and private jet service, according to its tourism Web site. Jobs are plentiful -- but home prices average almost $500,000.

Locals call Naples the ``bubble city,'' with home prices that have surged 140 percent since 2001. It's the most overvalued housing market in the country, driven by an influx of retirees and second-home buyers, according to a June report by National City Corp. and Global Insight economists.

Teachers, nurses, paralegals and other middle-income workers are pursuing housing -- and jobs -- elsewhere. That's making it tough for employers, which are giving big raises and housing subsidies and still finding it difficult to hire or keep staff.



Blogger MazNJ said...

Off-Topic but I'm not so sure about the civil servants being priced out. Some of the salaries I have seen/heard for many positions rival lower investment banker salaries. While I'm not commenting on the jobs themselves, this would suggest some disjoint and probably high increase in salaries due to swelling property taxes. In many cases, it was the benefits that should drive someone into civil service. But benefits and ridiculous salaries?

Wednesday, August 09, 2006 9:00:00 AM  
Anonymous Anonymous said...

My husband is a police officer and I am a teacher. We can't afford a basic ranch in Ocean County at the current price levels. Our family members who work for investment banks own homes in Rumson and are amused by our choice of careers. Clearly you have the wrong impression because there is no comparison.

Wednesday, August 09, 2006 5:44:00 PM  
Anonymous Anonymous said...

I know several teachers and police officers who cannot afford to buy in Monmouth or Ocean Counties. Ranches in Ocean county which were $100,000 six years ago, are now selling for $300,000. A 200% increase in six years-thanks to investors and creative financing.Hopefully, once this madness ends, first time buyers with modest incomes will once again be able to afford basic starter homes at the shore.

Thursday, August 10, 2006 1:23:00 PM  

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