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Economic Yearbook 2007
SOUTHEAST: Balancing Act
Diversified enough to weather the housing storm?
"Housing is the tail, not the dog."
Regional Trends
REAL ESTATE : The pace of growth in southeast Florida this year will be tempered by a sharp drop in housing starts and a real estate market weakened by oversupply. Declining real estate values could ripple though the economy if decreased home equity discourages consumer spending on goods and services -- the so-called wealth effect, explains Stephen Morrell, professor of economics and finance at Miami's Barry University and a senior research fellow at Florida TaxWatch. But the region's economy is diversified enough to weather the storm. "Housing is the tail, not the dog," says economist Hank Fishkind.
JOBS: Fishkind expects solid job growth in professional services and healthcare in 2007. ... Leisure and hospitality also will show strong gains, especially as a weak dollar draws more foreign tourists. ... Job losses in housing construction will be moderately offset as the industry shifts to the commercial and industrial sectors. ... Transportation and related infrastructure spending will also buoy the industry, Fishkind says.
TRADE: International trade will remain strong. ... West Palm Beach, Miami and Fort Lauderdale rank No. 1, 2 and 5 respectively, according to the National Association of Realtors, for the lowest industrial warehouse vacancies -- a key barometer for the trade sector.
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Miami
CONSTRUCTION: Miami's prodevelopment stance has many residents seething about outsized developments, gentrification and increasing gridlock. While city leaders say they will be more responsive to those concerns, multifamily and commercial construction will continue to drive the economy in 2007. ... High-rise construction cranes streak the downtown skyline.
DOWNTOWN: Downtown is coming alive at night with mixed-use developments combining shops, restaurants and condos. ... Big retailers like Circuit City and Target are popping up, transforming once blighted zones into livable neighborhoods.
Innovators
» Miami-Dade County Public Schools Superintendent Rudy Crew's leadership training programs for educators helped the district become one of six finalists for the prestigious Broad Prize for Urban Education, a national award given to mark improvements in student achievement.
» Under CEO Manuel Montero, 3-year-old Saf-T-Pay is creating an alliance of financial institutions that offers internet banking customers an alternative to using credit cards for online purchases.
» After selling Miami-based Ivax, Phillip Frost joined the deeppocketed venture capital firm Peregrine Ventures.
