On Vanity Fair’s web site Bruce Feirstein is counting down his list of the 100 people, companies, institutions, and vices most responsible for the economic mess. Each day he adds five new culprits to the list of villains. I am embarrassed to inform you that yesterday’s post include number 67. Miami and Las Vegas.
I suppose those of us who live in either of these communities should not be surprised. We witnessed all the signs of a historic housing bubble. I remember looking out my window and literally counting dozens of cranes. I personally know many people that were flipping condos.
For the past 10 years I have been a renter. Countless times over that period of time I have been asked “why is someone in real estate throwing away money by renting”. I politely tried to explain that I was at a transient point in life and it was much cheaper on a monthly basis to rent than to buy. In this latest cycle there was a belief that real estate values only went in one direction. I think most of my contemporaries believed you couldn’t lose money by owning a home. As we all know to well now, this opinion was significantly misguided.
I did not predict this housing crash but I was not surprised by it. It has been a tragedy for Miami, the Country and World. The housing bubble was the trigger that began this recession. In my business, commercial real estate occupancies, financing and values in many cases have been effected by the housing crisis.
I certainly can not disagree with Mr. Feirstein. Unfortunately, Miami was ground zero for some of the most egregious exuberances of the housing bubble. However, although Las Vegas and Miami led the charge, similar excess occurred in many markets in this Country and around the World. It is just sad to see my community singled out, as deserving as it may be.
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