Palm beach economy struggling, Miami housing shows signs of recovery

The collapse of the housing market sent out a ripple effect on the U.S. economy that the nation has yet to recover from. The downturn in the economy has negatively impacted local markets in different ways, with Palm Beach County losing billions of dollars, while Miami home prices show growth.

The local economy in Palm Beach County, Florida, has been significantly damaged by the real estate bust, losing $78 billion in real estate value, 93,000 jobs, $4 million in wages and $3.5 billion in annual taxable sales, the Palm Beach Post reported.

The middle class demographic has been hit the hardest. According to the U.S. Census Bureau, families earning between $50,000 and $150,000 account for 46.1 percent of Palm Beach County residents, down from 49.2 percent in 2006. In addition, the Palm Beach County property appraiser reported the value of residential and commercial property fell from $233 billion in 2006 to $155 billion in 2011.

However, a recent survey by the Miami Association of Realtors found sales of existing single-family homes in the Miami metropolitan area rose 47 percent in July compared to the previous year, and existing condominium sales increased 33 percent from 2010. The state of Florida saw a 12 percent growth in home sales from last year, below the national average of 21 percent.

Jack Levine, chairman of the board of the Miami Association of Realtors, said the Miami market is unique and has remained competitive compared to other local markets.

"Miami is a hotspot for tourists, the entertainment industry, and global corporations, generating attention from around the world and boosting the local real estate market," Levine said.  

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