Six weeks ago, Hurricane Irma blew through our island chain, leaving in its wake thousands of damaged or destroyed homes and shattering the lives of many of our friends and neighbors. Irma released her most destructive wrath on the Lower Keys, where many families who support our community and our tourist-based economy reside. Being priced out of the Key West housing market years ago, many working residents gravitated to the Lower Keys to find something resembling “affordable” housing, despite the long daily commutes.
With a significant number of our so-called affordable housing stock now destroyed by Irma, we are facing a housing crisis of monumental proportions. However, as tragic and destructive as Hurricane Irma was to our community, it did not cause the housing crisis in the Keys. We created this crisis over the past several decades through our own failures to properly anticipate, plan and prepare for the challenges of a tourism, service-based economy.
To drive the tourism train, we created, with the state, the Tourist Development Council and its “bed tax” program in order to raise revenue to advertise the Keys as a tourism destination. Since then, we have spent hundreds of millions of dollars on advertising to bring tourists to the Keys. There is no doubt that this targeted effort has worked. Tourists arrive in droves year after year, and tourism has replaced commercial fishing as our largest economic engine.
However, along with the tourists came the developers and investors, buying up large tracts of land to build hotels, marinas, restaurants, and other businesses to house and entertain our visitors. Many local residents and families were handsomely enriched through this transition process as the value of commercial and residential land skyrocketed. Some cashed in their fortunes and headed for the mainland, while others stayed to operate successful businesses and real estate empires.
As the Keys’ popularity continued to grow, we also became an attractive destination for wealthy snowbirds seeking their own unique slice of paradise. Baby boomers flooded the real estate market to claim their winter retreats. Investors further gobbled up private residences and turned them into nightly and seasonal rentals. As demand grew and supply dwindled, housing and rental costs continued to skyrocket.
With the flood of tourists came a flood of money pouring into our government’s coffers. Big development brought big property taxes and other sources of revenue. To further pluck every dollar from tourists, we quickly maxed out the sales tax rate under the guise of “infrastructure” and other taxes. More money meant hiring more people to count the money and to figure out how to spend it (without decreasing taxes for residents). Monroe County now has a budget over four times the size of any Florida county comparable in size.
Unfortunately, despite all of the money and other riches rained down on the Keys through tourism, we have abjectly failed in one critical area – making sure that the people and families who support our service economy can afford to live here. We all bear some responsibility for the sad state of our housing crisis, including landlords, developers, businesses, our governmental entities, and the voting public who consistently elect the same people who have shown little ability or interest in resolving the problem.
We believe Irma has provided us with an important opportunity to chart a different course for our future. Are we a community that will rise to the occasion, learn from our mistakes, and intelligently choose a new path? Or will we continue down the road to ruin, essentially destroying the successful economy we worked so hard to create? We simply cannot support a service-based industry without people to provide the services. Due to our geographic restrictions and inability to pull workers from outside areas, we must devise a housing plan that allows the majority of the workers to affordably reside within the Keys.
Post-Irma, it will not be the cleanup and rebuilding process that will present the most challenging task. The issue that will define us in the wake of Irma is how we address the housing dilemma. We have run out of road to kick the can down any further. If we do not solve it quickly and effectively, Key West and the entire economy of the Florida Keys will be negatively impacted for years to come.
– The Citizen