Delray Beach and Boca Raton Real Estate and Homes for Sale

Watch as Jeff and Dave, the founders of YourDelrayBoca.com, give you their take on the local real estate market:

There is no more dynamic real estate market in the U.S. than Boca-Delray.

From oceanfront mansions and historic homes to picturesque country clubs and subdivisions the market is vibrant, the choices are endless and the neighborhoods varied depending on age range, price and taste. The area features everything from old Florida to the most modern downtown condo’s and townhomes.

You are sure to find exactly what you want in these two world-class cities.

Buying or selling in the Delray-Boca area and need a recommendation? We can help. Learn more here.

Rankings, Ratings & Quality of Life

Leawood, Kansas seems like a great place but…

The personal-finance website WalletHub has released its report on 2017’s Best Small Cities in America.

It’s interesting and provocative.

Boca Raton scored high on most measurements, but the analysis revealed some areas of concern. And Delray Beach—despite being the great city we know it to be—has some work to do if you believe the indicators.

First the highlights:

WalletHub’s analysts compared more than 1,200 U.S. cities with populations between 25,000 and 100,000 across 33 key indicators of livability. They range from housing costs to school-system quality to restaurants per capita.

 

Top 20 Small Cities in America    

  1. Princeton, NJ   11. Newton, MA
  2. Lexington, MA   12. Melrose, MA
  3. Leawood, KS   13. Brookfield, WI
  4. Milton, MA   14. Sammamish, WA
  5. Brentwood, TN   15. Kirkland, WA

6 .Los Altos, CA   16. Saratoga, CA

  1. Carmel, IN   17. Dublin, OH
  2. Needham, MA   18. Palo Alto, CA
  3. Holly Springs, NC   19. Westfield, NJ
  4. Littleton, CO   20. Fishers, IN

 

Best vs. Worst

  • The Villages, Florida, has the highest homeownership rate, 96.25 percent, which is 108.1 times higher than in Fort Hood, Texas, the city with the lowest at 0.89 percent.

 

  • Plainfield, Illinois, has the lowest share of the population living below poverty level, 1.90 percent, which is 27.5 times lower than in Statesboro, Georgia, the city with the highest at 52.3 percent.

 

  • Fort Hood, Texas, has the shortest average commute time, 11.2 minutes, which is 3.9 times shorter than in Lake Elsinore, California, the city with the longest at 43.6 minutes.

 

  • East Lansing, Michigan, has the fewest average hours worked per week, 28.2, which is 1.7 times fewer than in Fort Hood, Texas, the city with the most at 49.1.

I would suspect that many of us who live in Delray and Boca wouldn’t trade living here for anywhere else—especially now that the good weather has kicked in. I don’t think there are too many people who would look at the rankings and sell their home in Lake Ida or Woodfield Country Club for a home in number 3 ranked Leawood, Kansas either. (No offense to Leawood, we’re sure it’s wonderful).

So where do we rank?

Delray ranked in the 60th percentile—the top cities were in the 99th percentile. Boca ranked in the 98th percentile.

Delray’s overall score of 57.62, trailed Boca which scored a 66.01. Number one ranked Princeton scored a 73.36.

Delray ranked 870th on affordability—not a surprise considering the run-up in home prices and the lack of new product on the market. Boca ranked 733rd on affordability.

Delray’s economic health ranked 436th with Boca coming in at 224—hard to imagine that there are that many cities healthier than Boca which seems to rake in companies and jobs by the truckloads. On the education and health measurement Delray ranked 728 and Boca 520.

Delray scored an impressive number 51 on the all-important quality of life ranking with Boca an even more impressive number 14. Interestingly, my guess is that residents of each city wouldn’t trade places—both cities are appealing for different reasons. Sarasota ranked number one in quality of life—and if you’ve visited lately you’ll see why.

On safety, Delray scored number 924 and Boca 543.

Lots to chew on certainly.

Rankings, awards, contests etc., are fun to debate, but in the end they are just numbers and things. It’s hard to measure a community’s spirit, aspirations, closeness, friendliness or ambience.

Still, they can be used to benchmark so that cities can strive to do better. Some cities—like Santa Monica—try to measure happiness. Delray used to survey residents on a range of issues and topics and policymakers at the time found the findings interesting and helpful. Cities can be noisy places—especially with the advent of social media—and sometimes (often) the squeaky wheels don’t represent the majority opinion on a given issue.

As for the Wallet Hub findings—I think we should take another survey in January and see if Boca /Delray would score somewhat higher than Princeton, N.J. as the place to be.

 

Old School Square Makes Us A Village

The anchor is a beacon.

We went to a great party Sunday afternoon to celebrate a generous donation to Old School Square.

And we were reminded about how art builds community.

Margaret and Robert Blume stepped up to make the transformation of the Cornell Museum possible.
When the newly renovated museum re-opens in November, we predict that visitors to the space will be amazed.

As Old School Square CEO Rob Steele puts it: the museum will become an important community asset for Delray Beach with profound and enduring benefits.
That’s exactly what it should be. Community museums and art centers are meant to be treasured assets valued by residents, tourists and artists.

None of this would be possible without the generosity of donors like the Blume’s, dedicated staff (and Old School Square has a terrific staff), a committed board, volunteers and a supportive city.
It really does take a village.

The Blume’s were taken by Old School Square’s story and it’s importance to the community and stepped up as a result.
Let’s face it, when it comes to philanthropic dollars there is enormous competition. You have to have a compelling mission and an ability to deliver in order to stand a chance with so many worthy causes to choose from.

Those of us who are board members and fans of Old School Square are hopeful that others will be inspired to step up and help Old School Square in its important mission. Rob and his dedicated team have created naming rights and other opportunities for philanthropy and involvement.

Here’s hoping that many seize the opportunity to shape the future. Old School Square is a special place and plays a central role in our community.

I’m reading a great book by musician Dar Williams called “What I Found in a Thousand Towns” which is devoted to the observations of an artist who has spent a life on the road.
Ms. Williams is a self taught urban anthropologist and her eyes have been trained to see what works in towns she visits that thrive.
In her book, she notes a concept she calls “positive proximity” —or the creation of spaces where people can gather, meet, talk, experience music, art and community.
Sound familiar?

That was the genius of Frances Bourque’s idea when she looked at a dilapidated old school sitting on the very best real estate in town.
She saw a place that could be the focal point of our city. A place that could build community.

Over the years, Old School Square has delivered.

It’s where we practiced for our All America City awards, where we gathered to light the Christmas tree and Menorah, where we thanked volunteers, where we held a vigil after 9/11 and where we met as neighbors to discuss race relations.
It’s also where we met to discuss our downtown master plan, where we have lit unity candles on MLK Day and where we attended weddings and other important personal celebrations.
In its classrooms, we have seen artists of all ages learn and explore their passions. On its stages, we have experienced magic.

Old School Square is our most important asset. It belongs to everyone. It honors our past, informs our present and speaks to our future.
And it needs our help. Now more than ever.

We need to complete our parks plan, reinvent for the future and make the most of the amphitheater.
If we fulfill its promise, we will remain a strong community. In  a world that’s increasingly polarized and growing more remote thanks to technology (and fear of one another) we risk losing “positive proximity.”
That’s a loss we may never recover from and will be sure to regret.
Old School Square was the key to Delray’s revitalization three decades ago. It’s even more important to our future.

We Have Some Work To Do

Most of America is deteriorating economically.

That’s the conclusion of a new study recently reported by Axios.com that has created a stir in cities and state capitals. It probably hasn’t made a dent in Washington, where they are too busy talking past each other and raking in big bucks for re-election to care.

Axios is on online news organization. They have some really good journalists and their coverage is usually pretty insightful. So what did Axios find?

Economic prosperity is concentrated in America’s elite ZIP Codes, but economic stability outside of those communities is rapidly deteriorating.

What does that mean?  U.S. geographical economic inequality is growing, meaning your economic opportunity is more tied to your location than ever before. Which means that your location better have a plan to keep their economies viable.

A large portion of the country is being left behind by today’s economy, according to a county-by-county report released this week by the Economic Innovation Group, a non-profit research and advocacy organization.

Key findings:

New jobs are clustered in the economy’s best-off places, leaving one of every four new jobs for the bottom 60% of ZIP Codes.

Most of today’s distressed communities have seen zero net gains in employment and business establishment since 2000. In fact, more than half have seen net losses on both fronts.

Half of adults living in distressed ZIP Codes are attempting to find gainful employment in the modern economy armed with only a high school education at best.

The map: The fastest growing Western cities (such as Gilbert, Ariz., and Plano, Texas) and “tech hubs” (Seattle, San Francisco, Austin) dominate the list of the most prosperous cities in the country. Cities that were once industrial powerhouses in the Midwest and Northeast, like Cleveland and Newark, are now more likely to be on the distressed end of the spectrum.

The cycle: Fewer new companies are forming than ever before, which disproportionately hurts distressed communities. The new businesses that do get started are often located in thriving communities where educated workers are. So talented people are forced to leave places with little economic opportunity — even if they have personal and family reasons to stay — to move to those where there is opportunity.

So how do we rank?

Economic Distress Indicators for: Palm Beach County, FL

Population: 1,378,810

% in Distressed Zip Codes: Palm Beach County 4.7%

% in Prosperous Zip Codes: Palm Beach County 35.1%

 

No High School Diploma: Palm Beach County 12.2% U.S. 13.3%

Housing Vacancy Rate: Palm Beach 8.2%  U.S. 8.3%

Adults Not Working: Palm Beach County 26.9% U.S. 28.2%

Poverty Rate: Palm Beach County 14.5%  U.S. 15.5%

Distress Score: 14.3

Distress Rank: 446

Overall, Palm Beach County is rated “comfortable” with indicators meeting or exceeding other counties and the national average. I also looked at three zip codes in Delray Beach and found interesting stats.

In 33445, which includes a lot of Delray Beach west of 95 and 30,460 people, the distressed rating was 30.2, more than double the rate for Palm Beach County. In my zip code, 33444, home to 22,440, the distress rank was a dismal 59.5. The downtown/beach area zip code, 33483 had a distress rating of 21.6 and consists of 11,850 people.

Distress was measured using 7 metrics.

  1. No high school diploma: Percent of the population 25 years and older without a high school diploma or equivalent
  2. Housing vacancy rate: Percent of habitable housing that is unoccupied, excluding properties that are for seasonal, recreational, or occasional use
  3. Adults not working: Percent of the prime-age population (ages 25-64) not currently in work
  4. Poverty rate: Percent of the population living under the poverty line
  5. Median income ratio: A geography’s median income expressed as a percentage of its state’s median income
  6. Change in employment: Percent change in the number of jobs from 2011 to 2015
  7. Change in business establishments: Percent change in the number of business establishments from 2011 to 2015.

This blog has long championed the importance of economic development and the need to strengthen and diversify our economy.

The stakes are high.

The report also indicated that less distressed communities are healthier communities. The healthier the economy, the healthier the person: People in distressed communities die five years earlier, according to the research.

If we care about our long term financial sustainability and the prospects for our children, we need to figure out a plan to be competitive with other healthy regions.

It’s not about chasing Amazon (good luck with that one) or waving incentives at companies—it’s about leveraging our strengths, improving our schools, nurturing entrepreneurs (economic gardening) working with universities, increasing quality housing that is affordable and building an inclusive community open to ideas, innovation and creativity.

 

 

 

Wanted: Civic Giants With Heart & Vision

Terry Stiles

Terry Stiles died Sept 11.
He was 70 and was a civic giant.
He was also a developer.
His success as a builder enabled him to give back to his beloved Fort Lauderdale.
We need more of his kind.
More people willing to step up and give. More people willing to step up and make it happen.

Mr. Stiles was one of the people credited with transforming Fort Lauderdale from a small beach town into a thriving city.
Some people like what’s happened. I’m sure some long for the  good old days.

But regardless of what side of that divide you fall on, there’s no denying the impact Stiles Corporation has had on Fort Lauderdale. But it wasn’t just the skyline that was impacted, it was the entire business community, the arts scene, health care, education and economic development that was forever changed via one man’s involvement, passion and commitment.

I met Mr. Stiles a few times over the years. I know people who worked for him and we have a few friends in common who knew him far better than I did. But I’m impressed and awed by these civic giants–these local icons who make a dent in their corners of the universe.

Compared to Fort Lauderdale, Delray is a small city. We have had our share of civic icons. And several have been generous.
But we need more.

Boca Raton has been blessed with some incredible philanthropy. Christine Lynn, the Schmidt Family Foundation, Dick Siemens, the Snyder’s, the Drummond’s et al.
They’ve made a profound and lasting difference.

But right about now, Delray can use a few folks to step up and make some things happen.

Old School Square can be a national cultural treasure, the Arts Garage needs angels, the Library, Historical Society, Spady Museum, Achievement Center, Caring Kitchen, Milagro Center, Miracle League, Sandoway House, Impact 100 all need financial support and commitment.

The list of worthy non profits and causes goes on and on. All of them need people willing to say: We need to solve this problem, we need to seize this opportunity or we need to rescue kids, animals, families etc. The city itself is a cause: we need people to step up and devote themselves to making a difference in Delray.
You get the picture.
And it’s not just charity.
Civic leadership also means people willing to commit to designing great parks, improving local schools, building affordable housing, creating jobs and opportunities for all, solving the scourge of substance use disorder, giving entrepreneurs a chance to succeed and artists a place to create etc.
We need civic giants.

Those people who move the needle are those who think long term and have ambition not for just themselves but for others.

We have enough naysayers. We have enough complainers. We have enough armchair quarterbacks playing gotcha, spouting off on social media, second guessing decisions and casting blame.
We need more leaders, angels, healers, supporters, investors, mentors and visionaries.

Yes, it matters who sits on the City Commission. Good mayor’s move the needle, they sell their city. They build civic pride. They evangelize and they nurture and support and still find a way to hold people to account without destroying their spirit.

They build, they fix. They don’t tear down.
And they inspire. They make you want to get involved. They make you want to be a citizen.
But…
We need more.
We can’t rely on five people serving for three years at a time.
We need long term players. People who are committed to creating something positive and important.

Such as:
Reinvent Congress Avenue.
Make Delray a cultural capital.
Create a sports and food Mecca.
Make our schools great, not good, but freaking great.
Vastly improve race relations so we are viewed as a beacon for the rest of America.
Break the cycle of poverty in this town. Learn from other cities but blaze our own  trail of greatness.

We need serious people.
Adults.
We need civic giants, people who  change the game.

Those Great Good Places

She’s a beauty, a great good, place.

I moved to Florida 30 years ago this summer.
Time flies when you’re having fun.
Back then, there weren’t too many places to dine in Delray.

Nope, we weren’t a foodie destination unless of course you thought Burger Chin or Jawoppy at the old Delray Mall were fine dining. (Confession: I did).
We did have the Arcade Tap Room, the Annex, Las Hadas and of course Boston’s on the Beach but we were far from a happening spot.

I spent a lot of time in those days at Tom Sawyer’s in Boca, Dirty Moe’s, Rosie’s Raw Bar and the wonderful Ken and Hazel’s.
We shot pool at the Phoenix on A1A (where Burger Fi now resides) and on rare occasions visited Marie Callender’s in Boynton Beach. Morrison’s cafeteria was a  treat and we all loved a place called Coasters in Atlantic Plaza.

There was a place below Linton Towers–the name escapes me–but I remember paying big bucks to watch Mike Tyson knock out Michael Spinks in mere seconds during a pay per view fight. The people in the buffet line weren’t pleased. We blinked and we missed the fight.
Delray was sure different in those days.

I thought about these old time places when I read that 32 East may be exiting the scene after a long and glorious run so that Louie Bossi can take its place.
If it comes to pass, I will miss 32 East; one of the first truly great restaurants on Atlantic Avenue.

Owner Butch Johnson has done a great job since opening in 1996  and I will miss seeing my fellow Oswego alumni John Fitzpatrick behind the bar where he is the consummate spiritual advisor, with the emphasis on the spirits.
32 East earned its place in the firmament of great local places alongside Dakotah, Damiano’s, Bennardo’s, Splendid Blendeds, Louie Louie Too, the Twilight Cafe, Gleason Street Cafe, Pineapple Grille, The Patio Delray, D & B Seafood, Busch’s, Atlantic Station, Luna’s and Vittorios. So many more I’m sure.
Thinking about them all gives me a warm and nostalgic feeling.

It’s not just the places we miss, but the people associated with them. I remember watching the All Star Game at Louie Louie’s with Diane and the late Lamar Shuler one year and taking my parents to the Gleason Street Café when they visited Delray to see the grandkids. I remember election night 1990 at the Arcade Tap Room and seeing the town’s fathers at their old table at the Green Owl.

Ray Oldenburg, a University of West Florida Professor wrote a great book some years ago called “The Great Good Place.”
The book talked about those “third” places beyond home and the office that become a part of the community fabric.
We miss them all. We cherish the memories. But inevitably we move on to discover new places too.
And so it goes.
I miss happy hours at Dirty Moe’s, I miss seeing Officer Vinny Mintus at The Annex for lunch and I wish I could have one more breakfast with Mr. and Mrs. Pompey at the old IHOP on North Federal.
Memories…

Q: What’s A Park? A: Everything.


We’re just back from a long weekend in New York City.
We stayed in the landmark Essex House on Central Park South and found ourselves spending a great deal of time in the 840 plus acre park.
The weather was glorious and the park was alive with dogs, children and people of all ages.
It seems like every time you venture into the park you discover something different and interesting.
The park is clean and you feel safe, a marked departure from when I grew up when popular culture and the news warned you about the perils of the place. That New York, which included a seedy Times Square, dangerous subways and Guardian Angels, seems like a distant memory.
Much has changed about New York some of it good, some of it not so good.
Inequality and gentrification are front burner issues and so are the losses of landmark businesses chronicled in the great blog “Vanishing NY” which is now a book on my must read list.
But a few things remain true to the Big Apple. The city still pulses with culture, energy and art. And its parks, particularly Central Park remain extremely important to the city’s soul.
Great parks enhance cities immeasurably and Central Park in New York and Millennial Park in Chicago are perhaps the two best examples of that theory.
When I was on the City Commission in the early 2000s we endeavored to enhance Delray’s parks authorizing a parks master plan that ultimately led to a parks bond.
One of my colleagues on the commission felt that our parks lagged other cities and that we were too much about ‘swings and slides’ and not enough about creating memorable spaces that would attract people to use our open spaces.
As was the style of the time, we consulted with the community and crafted a spending plan to address what we were hearing from parents, kids, seniors and other stakeholders.
Out of those efforts came the idea to create a large “Central” park at Old School Square replacing a surface parking lot with a mixed use garage and creating more open space near the center of our downtown.
Twelve years later that vision remains an unfinished goal. We have the open space, the amphitheater and garage (and the Arts Garage), but we envisioned more. Much more. The time has come to finally seize that opportunity.
A years long visioning exercise by the public is complete and I sure hope the powers that be fund the plan. It will be an important investment and will create enormous value.
Parks are hugely important statements that cities make.
They are critical investments that yield returns both tangible and intangible.
Similarly, failure to invest in open space  also makes a statement–not a good one.
As we watched kids wandering the zoo, dogs jumping in a fountain and couples walking hand in hand through Central Park I turned to my walking partner–who also happens to be my life partner –and said: “if I lived here I’d be in this park everyday.”
And that’s the key to a great public space: places where you can enjoy peace and quiet, spots to picnic, places to write, paint and read and places to exercise and celebrate (festivals). And yes, spots where you can take your dog. Places you want to be every day.

What’s Not Going to Change

I very frequently get the question: ‘What’s going to change in the next 10 years?’ And that is a very interesting question; it’s a very common one. I almost never get the question: ‘What’s not going to change in the next 10 years?’ And I submit to you that that second question is actually the more important of the two — because you can build a business strategy around the things that are stable in time.” — Jeff Bezos, CEO of Amazon

 
I’m not quite sure I’m a fan of Jeff Bezos.
But I sure do respect him.
He knows how to scale a business and disrupt industries as well as or better than anyone.
Just ask Walmart or any legacy retailer, bookseller or even cloud storage companies. 
I’ve been thinking about Amazon lately and what it’s impact and the impact of ecommerce may mean for cities and real estate.  But that post is for another day. 
The quote above made me think about something else. I think Bezos is right.  And while entrepreneurs always seek to skate where the puck is heading, the quote is also relevant to cities. 
A loud and active group of people seem to lament change in cities and I get it, we don’t want to lose the soul of our communities but change is inevitable and so the discussion should focus on how to best manage and steer the inevitable.
But what about thinking about what won’t change? What will still be needed in 10 years and beyond?
There are –as Bezos instructs –opportunities in what won’t be going away.
 
As much as we love Delivery Dudes we probably will still want to visit a great restaurant because it’s not just about the food it’s about the experience and the ambience. 
As much as we “stream” we may still want to see a great movie on a big screen with other people. We still may value “date night” or a matinee as I did the past two weekends when we went to see “The Big Sick” and “Baby Driver “at Cinemark. 
I love Netflix, but when I’m home I’m distracted. When I’m in a theater I focus and I end up enjoying the movie that much more–provided I don’t nap. 
Ipic is banking on that experience to endure as they build a new theater in Delray. 
I grew up the son of a retailer. My dad owned a retail pharmacy in Smithtown, N.Y., a business model that was disrupted by the likes of Walgreens and CVS. 
Now there are rumblings of Amazon going into the prescription delivery space. It will have an impact I’m sure. But as I watch an independent pharmacy being built on US 1 in Delray which will include an old-fashioned counter and other elements of retro drug stores I wonder if maybe we will leave room for authentic, old fashioned experiences like my dad’s old store. 
Yes AirBNB is all the rage but I think hotels will be around in 10 years. Maybe not the generic kind, but cool independents and boutique brands like Aloft that embrace local aesthetics will make it as will the incredible Crane’s Beach House which offers service, intimacy and strong ties to the local community. 
Big box retail and malls will be severely challenged but independent stores or highly curated chains with unique products and superior services and experiences should find room to survive and thrive. 
Food stores are changing too. 
A news story last week reported on a landmark study that showed consumers shopping for different items in different places. They may grab some items in a local farmers market, buy paper goods at a big box, shop for prepared meals at a local market and hit up a dollar store for staples. The 60,000 item supermarket may find itself struggling or having to reinvent.
So while we should cheer the CRA’s and WARC’s pursuit of a long coveted Publix for West Atlantic we should also recognize that our Green Market, local gardens, ethnic food stores and food halls have a place in our communities. Today’s consumer seems to crave options, authenticity, experience, ambience and value over generic mass. One wonders whether local retailers may mount a comeback: remember when Burdine’s was the Florida store? They didn’t stock sweaters in September because Burdine’s served the Sunshine State not a mass national market?
One of the bigger questions related to what will remain has to do with the future of the car.
Will it remain the same as today? My guess is no. 
There’s too much money being bet by major companies to think that the auto culture won’t be disrupted. 
When autonomous vehicles arrive, it will become the single greatest real estate opportunity of our lifetimes. With so much land and infrastructure given over to the car—i.e. seas of parking lots, garages, lanes and lanes of heat trapping asphalt–think of the opportunity to reinvent cities.
 No, transportation won’t be same. But my guess is the need for people to gather and experience together won’t change–providing great opportunities for cultural institutions, parks, recreation, restaurants and I hope old fashioned town hall democracy to thrive. 
The more technology engulfs our life the more we may crave human interaction and experience; which is the beauty of cities.
Cities are one “invention” that may change but I think they will endure and become more important than ever. 
I sure hope so. 

Housing For Young People Needed

Delray’s Community Land Trust is an innovative organization supported by the Delray CRA and others.

The headline was a grabber: Are You a Millennial Looking to Buy a Home? It Could Take Up to 32 Years.

Only 32% of the country’s largest generation (which consists of 75 million Americans) own homes. Those that do are flocking to interior markets, which tend to be cheaper and more cost-effective than most coastal markets. In our neck of the woods, that might mean the western fringes which creates sprawl and traffic as workers head east for jobs. But even out west, higher end homes seem to be the order of the day and many of the communities cater to the 55 and over crowd. Redfin recently reported that the 33446 area code (west of Delray)  is pacing the nation in price appreciation.

 

As the front line of millennials enter their mid-30s, financial security is not guaranteed. Instead, the generation is beleaguered with student loan debt (which exceeds car and credit card debt) and salaries that are 20% lower than what their baby boomer parents earned at the same age, according to a report by real estate research site Abodo.

 

The average net worth of a millennial is $10,090, or 56% less than what it was for baby boomers at the same point in life, according to Federal Reserve data.

 

Coupled with rising home prices, it could take decades for a millennial to be able to afford a down payment on a house in places like San Diego or San Francisco. This may be why more millennials live with their parents than any other generation in the last 130 years, according to Bisnow Media.

Millennials living in the country’s biggest cities, including New York City, Boston, San Francisco and Los Angeles are especially challenged.

 

The average millennial makes $40,500 per year. Using that average, were one to save 15% of her income each year, it would take just over 18 years to save enough for a 20% down payment on a home in Boston. It would take 32 years for a millennial to afford the average $112,000 down payment for a home in Los Angeles. And as the father of a few millennials who are gainfully employed (thank goodness) I have a hard time believing that even the most frugal and disciplined young person can save 15% of their income.

The picture in South Florida is not much different than some of the aforementioned hyper expensive markets.

I remember moving here when I was 22 and thinking that relative to New York and the Northeast, Florida was very affordable. My car insurance was lower, home prices were reasonable, there was no income tax and property taxes were much lower than my native Long Island. Even homeowners insurance was nominal at first—before changing after Hurricane Andrew.

Still, according to researchers at Abodo, Florida as a state remains much more affordable than other parts of the United States. It would take 5-10 years for millennials to save up.

Hence, the desire for developers to build apartments and the willingness of underwriters to finance deals. However, finding sites in built-out and expensive Boca and Delray is challenging. With land prices soaring, rental rents are also rising and the uncertain regulatory environment (costly, lengthy and torturous entitlement processes, toxic politics, NIMBYism and an aversion to density) make it even harder for millennials to strike out on their own.

Another headline in USA Today recently also grabbed me: Where Did All The Starter Homes Go?

The article cited a byzantine maze of zoning, environmental, safety and other requirements that has led to a 35% decrease in housing construction across the country from previous levels. According to economists cited by USA Today, the lack of supply has driven up home prices by 40% over the past five years.

Single family home construction suffers from a lack of available land and a lack of skilled construction workers, according to the National Association of Realtors. Banks are also tougher on borrowers as a result of the housing crash in 2008.

The perfect storm has led the National Association of Home Builders to sound the alarm. The NAHB says that from 2011 to 2016, regulatory costs to build the average house has increased from about $65,000 to $85,000 and now represent 25% of the cost of a home.

Of course, we need regulations as long as they are necessary, fairly priced and serve a public purpose.

Still, the inability of millennials to gain a foothold in our community should be pressing concern for public and private sector leaders.

It’s important for companies to be able to recruit workers in order for the economy to grow. Workers, young families, entrepreneurs and established companies look at housing prices, quality of life, quality of schools and cultural amenities before making a decision on where to put down roots.

Unfortunately, the word density has taken on a bad meaning. But, truth be told, density done well (i.e. properly designed for great buildings and public spaces) is essential for cities such as Boca Raton and Delray Beach. Compact and walkable development is better for the environment than traffic producing sprawl which serves the needs of cars over people. It also allows for young people to form households and become part of the community injecting needed ideas, life, energy, monies and volunteer hours which make cities work.

The recent changes to Delray’s land development regulations for the downtown core which capped density at 30 units to the acre, was a big mistake. It virtually guarantees that millennials—who seek walkable environments and don’t want to be car dependent—can’t live downtown. By limiting the supply, you jack up prices and we end up with an eastern core that’s shut off to all but the very wealthy.

The 2001 Downtown Master Plan, which did much to build on the 1990s Decade of Excellence, was a community wide education effort that encouraged well-designed projects versus a fixation on density numbers. We saw visual examples of ugly low density housing and also saw attractive higher density projects which have the added benefit of increasing your tax base while also adding residents who can support local businesses. That was the guiding rationale behind the push to add downtown housing. We wanted a sustainable, year-round downtown.

The other areas that make sense to add attainable housing for millennials and others is North and South Federal Highway, Congress Avenue and the “four corners” of Atlantic and Military, which has zoning allowing for a mix of uses. The four corners zoning—done over a decade ago—will become increasingly important as we see pressure on the retail landscape increase with big box chain stores being driven out of business by ecommerce.

Delray is ready to offer shopping center developers more options for their properties should they decide to invest and change course.

The best incentives are not monetary—which almost always leads to an arms race you can’t win with companies taking the money until a better offer comes along. Rather, the best incentives are zoning, a tough but fair and timely approval process that emphasizes design and good uses and enough density to give the next generation a chance to access your city.

We were always ahead of the curve—which is why Delray succeeded. It’s important we stay there or we will be left behind. Right now, we’re losing ground.

A Return To Bay Street

Greetings from The Bahamas.
About a dozen years ago, I was part of a small group that got invited to The Bahamas to meet business and political leaders looking to improve downtown Nassau.
I was thinking about that trip and a follow up visit by Bahamian officials to Delray this week as I returned to Paradise Island and made a trip to Bay Street.
U.S. Ambassador Ned Siegel asked former Mayor Tom Lynch and I to visit and talk about what we learned from the revitalization of downtown Delray Beach. We were joined by Boca Chamber President Troy McLellan and Kelly Smallridge, the president of the Business Development Board of Palm Beach County.
It was a memorable trip. And thanks to Ned, we met a who’s who in the Bahamian business world and government.
What struck us was the lack of local government so that the “little things” that mean so much –stuff like potholes and traffic flow –were left to the national government to deal with.
One of the issues at the time for Bay Street business leaders was the magnetic pull of cruise passengers and tourists to Atlantis, the massive resort that kind of has it all from magnificent pools and restaurants, to stores, aquariums and of course a casino.
We were asked to make some recommendations and we did and we later hosted a delegation in Delray, Boca and Palm Beach County.
I’m still in touch with a few of the Bahamians from that trip, mostly on social media.
So it was interesting to go back and ask as many people as I could how downtown was doing.
Of course, when you ask you get the gamut of responses: Bay Street was “thriving”, “struggling”, doing “awesome” and “so-so.”
When we were there we saw four cruise ships and the streets and stores were busy.
Side streets looked the same as a dozen years ago–still in need of some TLC. And parts of Bay Street were doing well and parts were marked by empty stores and blight.
So it goes…but it’s a beautiful place, with nice people, vibrant color, tropical weather, good food and happy music. And the residents…they love it here. Lots and lots of pride.
One thing was notable. Everywhere we went, people seemed to still know and miss Ambassador Siegel. That’s pretty cool. He left a mark here.
I hope he knows that.

 

Innovation & Aspiration in Pompano

Pompano’s brand new cultural center makes a statement: We are serious.

Last week, we attended a meeting of the Urban Land Institute at Pompano Beach’s gleaming new cultural center.

For me, it was a case of déjà vu—because what I’m seeing in Pompano is the mindset I saw in Delray Beach in the late 80s and early 90s—a time of dreaming, aspiration, visioning and planning.

If you’re a city wonk like me, there’s nothing more inspiring than a city that sends out the message of “come on down, we are open for business and striving for greatness.”

And consequently no more depressing experience than to see a city that says “go home and get lost, we are done.”

Of course, no city comes out and says it quite that way. They all talk about jobs, investment, smart growth, sustainability and every other buzzword you can trot out, but the cities that are sincere actually seek it out and if investment comes to them they work hard to land the deal.

The most compelling incentives are never financial—they are always emotional. Investors bringing jobs and projects don’t expect you to compromise the rules or aesthetics—but they do expect you to have some flexibility and predictability and a sense of urgency to get things done.

One of the speakers at the ULI Pompano event warned those in the audience to avoid two labels:

  1. Don’t be the city where someone has to spend $500,000 beating their heads against the wall before leaving for friendlier towns. Capital goes where it is welcome.
  2. Don’t be the city that is perpetually the next “it” town, but never quite gets there.  I think that’s good advice.

Let’s explore warning number one—the city that develops a reputation for being impossible to work with will begin to attract bottom feeder developers—not the best in class that cities should be looking to lure.

The best developers and business owners aren’t averse to high standards or tough criteria; many of the best welcome a high bar. But they are wary of unpredictability, dysfunction and frankly stupidity. They don’t like corruption either.

They also don’t like an environment in which the rules are fungible—so that even if you follow them you aren’t assured of a fair hearing.

As for the second warning…we all know the label and can name a few cities that fit the moniker. After a while you become like the talented draft pick who never quite reaches his potential. We all know the term that’s used for those types: bust.

What’s also bad is to be known as the city that climbs all the way up the mountain and then before reaching the summit, gives it all away. They call that being “meshuga”: Google it.

Anyway, Pompano is pushing an innovation district just east of I-95 and spanning over 170 acres. They envision jobs, manufacturing, start-ups, restaurants, apartments and open space.

They built a magnificent cultural arts center, redid their beach front, landed the 26 Degree brewery on Atlantic Boulevard, and approved the mixed use Pompano Fishing Village, the sharply designed Koi Residences and a few more signature projects in their eastern core. Even the long troubled Hammondville Road corridor is seeing investment.

Several Delray Beach investor/development companies including Grover Corlew (invaluable contributors to the Congress Avenue Task Force) and New Urban Communities (Atlantic Grove among other projects) are investing in Pompano. Both see parallels between where Delray Beach was and where Pompano is today—solid leadership, a great CRA, talented staff and an aspirational “get it done” mindset.

ULI and Pompano brought Mitchell Weiss from Harvard Business School to the event. Weiss was chief of staff to the late Boston Mayor Tom Menino when that mayor envisioned an innovation district along Boston Harbor that became a national model for job creation and placemaking.

Weiss said cities should stick to their vision—insist on doing something special, invest in education, partner with universities, market their city and take extra care to make sure things happen so that traction and momentum can take root.

Words to live by or ignore.

Live by it and see things happen. Ignore it, and watch other cities eat your breakfast, lunch, dinner and sadly your future.