Most people know Homestead as the epicenter of Hurricane Andrew’s wrath. Seventeen years later, Homestead’s homeowners are in trouble again… this time due to real estate (over) speculation which lead to rampant foreclosure:
“In certain ZIP codes in places like Homestead and Florida City, around 25 percent of the homes are in one stage of foreclosure or another. Countless others were built by developers and sit vacant in ghostly subdivisions, with not a buyer in sight.”
Post-Andrew, developers moved in and started building $300,000+ properties. That would be okay in Boca Raton or elsewhere. Unfortuantely, in Homestead, the median family income is less than $60,000 per year. Something had to give and it was the housing market.
Fortunately, it seems like the people in Homestead recognize the problem and are doing something about it.
“(Mayor Lynda) Bell says she’s hopeful for Homestead’s future, which includes $3 million of federal stimulus money for the community of 57,000 people. The city will use the funds to buy and rehabilitate rental properties for low-income families, demolish damaged houses and provide down-payment help for single-family home buyers.”
Good to hear.