Dec. 7, 2017 – Miami faces growing challenges of inclusion and affordability. According to a new analysis by the FIU | Miami Urban Future Initiative, the Miami metropolitan area ranks sixth among large U.S. metros on the New Urban Crisis Index, a composite measure of economic inequality, economic segregation, and housing unaffordability.
The Miami Urban Future Initiative is a joint effort between the Creative Class Group and Florida International University’sCollege of Communication, Architecture + The Arts (CARTA), funded by the John S. and James L. Knight Foundation, to develop new research for building a stronger and more inclusive economy in Miami.
MUFI’s latest report on “Miami’s New Urban Crisis”—written by Richard Florida, author of The New Urban Crisis and Visiting FIU Fellow—evaluates Miami’s economic development challenges compared to 52 large U.S. metros with more than one million people. The report examines dimensions of urban stress, including economic inequality, housing unaffordability, and middle class decline. “There is a downside to Miami’s urban revival,” writes Florida. “Its recent economic boom has generated a New Urban Crisis born from its very success.”
Miami’s rankings on the various equity metrics include:
- Income Inequality. Miami ranks second among large U.S. metros in terms of income inequality.
- Wealth Segregation. Miami ranks tenth among large U.S. metros according to its segregation of the wealthy, a measure of the residential segregation of households with incomes of $200,000 or more.
- Overall Segregation. Miami ranks sixteenth among large U.S. metros on the Segregation Inequality Index, a combined measure of economic segregation and both wage and income inequality.
- Housing Unaffordability. Miami ranks among the twenty least-affordable metros in the world in terms of its “median multiple,” or ratio of median housing prices to median household income.
- Concentrated Poverty. 14 percent of Greater Miami households and one in five families with children lived below the poverty line.
- Middle Class Decline. In Miami, the middle-class share of population declined from 51 percent in 2000 to 48.5 percent in 2014.
“Like Miami’s urban revival, the shift toward inclusive prosperity will not take place overnight,” explains Florida. “It begins with local leaders viewing equity and economic development as a mutual goal.”