The Metropolitan Center at Florida International University metropolitan.fiu.edu Greater Miami Chamber of Commerce Workforce Housing Survey

The Metropolitan Center at Florida International University metropolitan.fiu.edu Summary Nearly 60% of respondents indicated that the rising cost of housing in Miami-Dade County has impacted their ability to recruit employees As a result over 75% of respondents have had to modify their recruitment methods to offset this trend. Over 50% of respondents indicated that the rising cost of housing in Miami-Dade County has impacted their ability to retain existing employees. Over 70% of respondents indicated half of their workforce or more reside in locations based solely on housing affordability.

The Metropolitan Center at Florida International University metropolitan.fiu.edu Summary (cont.) Despite the extensive impact of rising housing costs on employee recruitment and retention over 80% of respondents are not willing to offer housing assistance benefits to its workforce. Paradoxically, 85% of respondents indicated that their organization’s CEO or Senior Management is concerned about the existing cost of housing in Miami-Dade County. Respondents indicated that the bulk of responsibility in addressing the housing affordability crisis in Miami-Dade County rests with county government.

The Metropolitan Center at Florida International University metropolitan.fiu.edu Methodology The survey was conducted from September 4, 2006 through September 30, There were 158 completed surveys. Responses were received via the on-line portal and fax. The selected response modality breakdown is as follows: –121 (77%) on-line surveys – 37 (23%) faxed surveys Responses were received from the Chamber’s membership only.

The Metropolitan Center at Florida International University metropolitan.fiu.edu About the Respondents The professional profile of the typical survey respondent and their respective firm is as follows: –Most respondents: Work within Miami-Dade County (80%) Are in the finance, insurance, or business service industry (18%); Are either executive or professional staff members, partners or principals; Work within the zip code; –Represented firms: Are mostly within Miami-Dade County – of these the majority of their employees live east of the Palmetto and south of the 836 (55%) Have an average of 41 full-time employees; Have an average of 3 part-time employees; Have been in business for 25 years

The Metropolitan Center at Florida International University metropolitan.fiu.edu Recruitment & Retention When it comes to employee recruitment and the impact of the housing market on the same, survey respondents indicated the following: Most respondents indicated that: –They most frequently rely on the Internet to recruit employees (24%) –The rising cost of housing has negatively impacted recruitment efforts (59%) –It is most difficult to recruit at the supervisory/managerial level (30%) –As a result they have had to expand or modify recruitment methods (76%) – most notably by offering: »Increased salaries (45%) »Relocation expenses (26%) –The added cost of expanded recruitment methods had not been calculated for their organization (58%) When it comes to employee retention and the impact of the housing market on the same, the typical survey respondent indicated the following: Most respondents indicated that: –The rising cost of housing has negatively impacted their ability to retain current employees (52%) –It is most difficult to retain entry-level employees (29%)

The Metropolitan Center at Florida International University metropolitan.fiu.edu Recruitment & Retention

The Metropolitan Center at Florida International University metropolitan.fiu.edu Housing Assistance Benefits When it comes to housing affordability and assistance benefits, the typical survey respondent indicated the following: –Most respondents indicated that: 50% or more of their employees reside in locations based solely on housing affordability (71%) Their employees earning $45K per year or less would experience difficulty accessing affordable housing (38%) Despite this fact the vast majority (82%) is not willing to offer housing assistance benefits to their employees Of those willing (17respondents) only 10 are financially able to offer such benefits to their workforce Only 5 respondents indicated offering housing assistance benefits to their workforce the most common being –Relocation expenses –Down payment assistance

The Metropolitan Center at Florida International University metropolitan.fiu.edu Housing Assistance Benefits

The Metropolitan Center at Florida International University metropolitan.fiu.edu Concerns & Considerations Survey respondents expressed the following concerns and considerations –Most respondents indicated that: Their organization’s CEO is concerned about the cost of housing in Miami-Dade County (85%) That commute times and proximity to work are important considerations (90%) When asked to predict future trends and factors our survey respondents indicated the following: –Most indicated that: They anticipate continued growth within their industry (72%) Labor availability and costs (28% - combined) would be the main factors discourage their them from expanding their operations County government should bear the most responsibility in addressing the housing affordability crisis (17%)

The Metropolitan Center at Florida International University metropolitan.fiu.edu Addressing the Housing Crisis

The Metropolitan Center at Florida International University metropolitan.fiu.edu Open-Ended Responses 15 respondents voiced their concern over the high cost of insuring properties in South Florida 10 respondents voiced their concern over the impact housing costs on employee recruitment 7 respondents pointed to the increasing traffic congestion and issues of mobility as causes for concern. 6 respondents asserted that low salaries were the main problem (to the housing affordability crisis). 5 respondents pointed to the lack of affordable housing areas and affordable housing developments. 4 respondents believe that corruption in government is at the root of the housing affordability problem. 3 respondents pointed that there is even a lack of affordably priced rental units.

The Metropolitan Center at Florida International University metropolitan.fiu.edu THANK YOU! We would like to recognize the following companies for their support and contributions: BankUnited, FSB Baptist Health CB Richard Ellis Miami Country Day School Crosswinds Communities Greater Miami Neighborhoods Holly Real Estate Marsh USA Pinnacle Housing Group The Continental Group Zyscovich, Inc.