You’d like to believe there’s a silver lining to the gradual takeover and gentrification of Miami’s “Little Haiti” neighborhood, as Billionaires fall back from the shore line.
But no, survey shows the wealthy don’t think they are vulnerable to climate change, just continuing to churn Florida’s Real Estate speculation based economy, that Rolling Stone writer Jeff Goodell described to me years ago.
Greedheads gonna greed.
Richard Grant and Han Li in The Conversation:
Miami’s Little Haiti has been an immigrant community for decades. Its streets are lined with small homes and colorful shops that cater to the neighborhood, a predominantly Afro-Caribbean population with a median household income well below Miami’s.
But Little Haiti’s character may be changing.
A $1 billion real estate development called the Magic City Innovation District is planned in the neighborhood, with luxury high-rise apartments, high-end shops and glass office towers.
The developers emphasize their commitment to sustainability. But high-end real estate investments like this raise property values, pushing up property taxes and the cost of living for surrounding neighborhoods.
Some media and urban scholars have labeled what’s happening here “climate gentrification.”
It’s the idea that investors and homebuyers are changing their behavior and moving from coastal areas into poorer, higher-elevation neighborhoods like Little Haiti, which sits on a ridge less than a mile from the bay, in anticipation of worsening climate change risks, such as sea-level rise. Miami is often held up as an example.
But are Miami’s investors and homebuyers really motivated by climate change?
The story goes that Miami homebuyers are abandoning the coasts – where high tides can already bring street flooding in some areas – and are looking for higher-elevation areas because they want to escape climate change.
That isn’t what we’re finding, though.
In Yale’s Climate Opinion Survey of Miami-Dade County in 2021, only half of Miami residents said they believe global warming will harm them personally – far lower than the 70% who said that in Delaware and the 90% in Canada, Western Europe and Japan. Another survey found 40% of Miami-Dade residents weren’t concerned about the impact climate change might have on the market.
In a new study, our team at the University of Miami found a more nuanced picture of what is actually pushing homeowners to higher ground.
For the most part, we found that the shift away from the coasts is fueled by costs. Flood risk plays a role through the rising cost of flood insurance, but much of the shift is plain old gentrification – developers looking for cheaper land and spinning it as a more sustainable choice to win over public officials and future residents.
Rather than bottom-up pressure built on residents’ alarm about sea-level rise, we found a continuation of the usual rational investment decisions.
Miami is very different from other global cities, in that its wealthy homebuyers and second-home buyers exhibit fewer concerns about rising sea levels and climate change. A large percentage of Miami homebuyers – about 13% in 2021 – don’t live in the U.S. and may evaluate risk differently, seeing Miami properties as safer investments than they have at home or as future second homes.
Miami’s gentrification also isn’t limited to higher-elevation neighborhoods. In coastal areas such as Miami Beach, taxes and housing and rental prices are rising, and poorer people are being pushed out of neighborhoods. Miami’s average rent is now over $2,800 a month, up 16% from October 2021 to October 2022. That’s about $800 higher than the U.S. average, and it rose at nearly twice the national rate over the past year.
Could it be that Miami residents are older than the national average and are less concerned about what will happen further into the future?