A crippling housing crisis has cost multitudes of residents their
homes and jobs. The metro area has one of the highest violent crime
rates in the country and workers face lengthy daily commutes. Add it all
up and Miami takes the top spot in our ranking of America’s Most
Miserable Cities.
The most famous way to gauge misery is the Misery Index
developed by economist Arthur Okun in the 1960s, which combines
unemployment and inflation. Our take on misery is based on the things
that people complain about on a regular basis.
We looked at 10 factors for the 200 largest metro areas and divisions
in the U.S. Some are serious, like violent crime, unemployment rates,
foreclosures, taxes (income and property), home prices and political
corruption. Other factors we included are less weighty, like commute
times, weather and how the area’s pro sports teams did. While sports,
commuting and weather can be considered trivial by many, they can be the
determining factor in the level of misery for a significant number of
people. One tweak to this year’s list: we swapped out sales tax rates
for property tax rates. Miami would have finished No. 1 under the old
methodology as well (click
here for more details about the criteria for the list).
In Miami there is a growing divide between the top 1% and the rest of the metro area. Life is good for the likes of
LeBron James
and Latin pop crooner Enrique Iglesias, who’s building a $20 million
compound on a private island with girlfriend Anna Kournikova, but if
you’re among the 75% of households with an annual income under $75,000,
it can be a hard place. The median home price is down 41% the past three
years, sixth worst in the country, to $169,000. It’s great news for
first-time homebuyers; not so great for the 47% of homeowners in Miami
sitting on underwater mortgages.
A whopping 364,000 properties in the Miami area have entered the foreclosure process since 2008, according to
RealtyTrac.
The number of foreclosure filings slowed in Miami and across the
country last year, but the housing market is far from a comeback.
Miami voters are fed up. Last year 88% voted to throw Miami-Dade
County Mayor Carlos Alvarez out of office in the biggest recall ever of a
municipal government official. They were dissatisfied with property tax
hikes he pushed though during Miami’s real estate meltdown, while
doling out raises to staffers at the same time. Miami residents were
further outraged by the city and county covering 80% of the cost of the
Florida Marlins $634 million stadium set to open in April despite the
Marlins turning fat profits in recent years.
To replace Alvarez, Miamians selected retired firefighter Carlos
Gimenez in an election that featured Luther Campbell of 2 Live Crew
fame, who famously was brought up on public obscenity charges for
performing songs from his album “As Nasty As They Wanna Be.” The
controversial rapper, who promoted an exotic dancer tax during his
mayoral campaign, finished fourth with 11% of the vote. Consider: 11% of
voters thought “Uncle Luke” would be the best choice to run the eighth
most populous county in the U.S.
Gimenez’s office took issue with Forbes’ use of some data from 2010
for our ranking. “We’ve completed a number of initiatives and
infrastructure projects during the past two years, which if used in the
measurement criteria for your report, would dramatically change its
result towards a much more positive position for Miami-Dade county,” the
mayor’s office said in a statement. “In addition, our crime rate has
been moving downward steadily, our property taxes were dramatically
reduced last year by over $200 million, and our unemployment rate has
been reduced by around 30% since last summer and continues to move
downward.”
Miami has local company in misery on our list: the
West Palm Beach metropolitan division ranks fourth and
Fort Lauderdale is seventh. Both areas have been hit hard by the housing crises.
South Florida politics have long been stained by corruption, which we
factor into our list based on data from the Public Integrity Section of
the U.S. Department of Justice on the number of politicians convicted
of crimes. Southern Florida has had 354 public officials convicted of
crimes over the past decade, which is one of the highest rates in the
country on a per capita basis.
The latest trouble in the West Palm Beach area involves the mayor of
Boynton Beach, Jose Rodriguez, who was suspended from his office last
month by Gov. Rick Scott after Rodriguez was arrested for allegedly
using his position to obstruct a child abuse probe involving his wife’s
estranged daughter.
The Miami Heat brought Florida sports fans much joy when it
paired James and Dwyane Wade in 2010 and the duo led the Heat to the NBA
Finals. The rest of the Miami pro sports scene is pure misery, with the
Miami Dolphins, Miami Marlins and Florida Panthers all among the worst
teams in their respective sports last year (the Panthers have rebounded
this season).
Michigan’s troubled duo of Detroit and Flint clock in at No. 2 and
No. 3 among the most miserable cities. The cities have been reeling for
decades due to the decline of the U.S. auto industry and in recent years
have been demolishing houses to change their city landscapes. Detroit
has closed schools and laid off police, while Michigan appointed an
emergency manager last year to take over Flint’s budget and operations.
Detroit and Flint rank No. 1 and No. 3 when it comes to violent crime,
and unemployment over the past three years in both communities has also
been among the worst in the U.S.
Last year’s most miserable city, Stockton, ranks No. 11 this year.
Stockton got a boost as housing prices have stabilized to some degree
after a 45% drop between 2006 and 2008. They also benefited from our
replacement of sales tax rates with property taxes in the methodology
(Stockton would have finished No. 6 under the old methodology). Stockton
still has plenty of problems, though. It ranks among the country’s six
worst when it comes to unemployment, foreclosures and violent crime.
#1 Miami, Fla.
The housing crisis has devastated Miami with 47% of homeowners
sitting on underwater mortgages. Foreclosures
have been rampant with 364,000 properties in the Miami area entering the
foreclosure process since 2008 according to RealtyTrac.
#2 Detroit, Mich.
Detroit has closed schools and laid off police in an effort to avoid a
bankruptcy filing this year. Home prices are down 54% the past three
years, worst in the U.S. The median price was $38,000 last year in the
Detroit-Livonia-Dearborn metro division.
#3 Flint, Mich.
Flint razed 775 abandoned homes in the year ending October 2011, to
try and change the city landscape. The state of Michigan appointed an
emergency manager last year to take over Flint's budget and operations.
Crime remains a severe problem with the violent crime rate the third
worst in the U.S.
#4 West Palm Beach, Fla.
South Florida has long been stained by corruption. One of the latest
examples: Jose Rodriguez, the mayor of Boynton Beach (part of the West
Palm metropolitan division) was suspended from his office last month by
Gov. Rick Scott after he was arrested for allegedly using his position
to obstruct a child abuse probe involving his wife's estranged daughter.
Home prices in the West Palm area are off 50% since 2006.
#5 Sacramento, Calif.
Sacramento’s lone pro sports team is flirting with a move to Anaheim
unless the city delivers financing for a new arena. Sac-Town might not
miss them. The team has lost 73% of its games since the start of the
2008-09 season. Foreclosures in California's capital were among the 10
highest last year.
#6 Chicago, Ill.
The Windy City is a cultural and financial center, but its residents
must endure gridlock traffic, high property taxes and brutal winters.
Commute times to work average 31 minutes, eighth worst in the U.S.
#7 Fort Lauderdale, Fla.
The spring break mecca has been hit hard by the housing downturn.
Median home prices in the metro division that includes Pompano Beach and
Deerfield Beach are down 50% since 2006 to a recent $183,000.
#8 Toledo, Ohio
The city is ensnared in a scandal within its Department of
Neighborhoods that involves alleged bid rigging and stolen funds. The
FBI and U.S. Department of Housing and Urban Development are
investigating the crimes. Toledo scores poorly when it comes to income
and property tax rates.
#9 Rockford, Ill.
Property tax rates were fifth highest in the country in 2010. The
median tax bill was $3,234 on home values of $136,000 for a rate of
2.4%.
#10 Warren, Mich.
The housing market collapsed in the Warren metro area, which includes
Troy and Farmington Hills. The median home price is down 50% over the
past three years, the second biggest drop in the U.S. after Detroit.
#10 Warren, Mich.
The housing market collapsed in the Warren metro area, which includes
Troy and Farmington Hills. The median home price is down 50% over the
past three years, the second biggest drop in the U.S. after Detroit.
#11 Stockton, Calif.
Last year's No. 1 miserable city got a boost as housing prices have
stabilized to some degree after a 45% drop between 2006 and 2008.
Stockton still has plenty of problems, though. It ranks among the
country's six worst when it comes to unemployment, foreclosures and
violent crime.
#12 Cleveland, Ohio
Things have brightened in our 2010 most miserable city as
unemployment is below the U.S. average at 7.7% and home prices are off
just 4% since 2008. Cleveland still makes the cut thanks to high taxes
(income and property) along with lousy weather and sports teams.
#13 Lansing, Mich.
Lansing makes the cut thanks to lots of foreclosures, high property
taxes and lousy weather. One bright spot: short commutes to work for the
metro area's 467,000 residents.
#14 Akron, Ohio
Vacant homes are becoming a problem in Akron with 3,000 properties
currently on the Akron Service Department's list of problem homes.
#15 Merced, Calif.
Unemployment is at 17.6% in Merced, which is the worst among the 200
largest metro areas in America. Foreclosures are also an issue with
3,700 filings last year, or 4.4% of households. That rate is seventh
worst in the U.S. Merced is the smallest metro area by population on the
miserable cities list.
#16 Memphis, Tenn.
Home prices are down only 6% the past three years and Tennessee does
not have a state income tax. But a violent crime rate that is second
only to Detroit helps lands Memphis on the list.
#17 Bakersfield, Calif.
The American Lung Association dubbed Bakersfield the most polluted
city in the U.S. thanks to its high level of particulate matter in the
air and ozone. Only 14% of Bakersfield adults have a college degree.
#18 Vallejo, Calif.
Vallejo emerged from bankruptcy last year after three years of
cutting spending and restructuring debt. Fallout from the reduced
spending includes a police force and fire department that operate at
roughly one-third their capacity from 2004.
#19 Modesto, Calif.
Modesto has been ravaged by the housing bust with 1 out of every 19
properties filing for foreclosure in 2011 according to RealtyTrac.
That’s third worst in the U.S. Unemployment remains a problem also with
an average rate of 16.7% the past three years.
#20 Gary, Ind.
Gary, located 25 miles from downtown Chicago, has been ravaged by the
decline of its industrial base. Foreclosures and high crime continue to
plague the area.
Credit : Forbes
because of relatively small mistakes that they have made in the past, according to consumer advocates.
