What A Difference In Optimism Three Years Have Produced
Economic optimism that was squelched by the recession has come roaring back among Miami Today readers, and with good reason: their financial positions have improved markedly.
The average reader’s mean household income has jumped from $219,000 to more than $259,000 since 2012, data from Miami Today’s new readership survey show.
That single statistic sets the table for a string of related findings by Behavioral Science Research in Coral Gables, whose three-part independent study based on four pages of close-packed questions not only confirms broad economic gains by Miami Today readers over three years but indicates optimism that in fact surpasses those gains.
Examples of those aspirations are broad. Whereas 4% of Miami Today readers in 2012 planned to buy a powerboat within a year and 7% already had powerboats then, today 12% do in fact own powerboats – exceeding earlier buying plans – and 13% now plan to buy one in the year ahead.
Another clear example is commercial real estate. In 2012, some 9% of Miami Today readers owned commercial real estate and 6% planned to buy. Today, 14% of Miami Today readers report that they own commercial real estate, but a whopping 31% plan to buy commercial real estate in the year ahead.
Talk about rapidly rising expectations.
Look too at plans to buy residential rental properties. In 2012, 7% of Miami Today readers had such plans. Today, 31% do. While condos are booming, a large number of Miami Today readers see big opportunities in owning rental units, perhaps as badly needed workforce housing.
Real estate expectations go on and on. Some 66% of Miami Today readers now report that they own single-family homes, but 31% plan to buy one or more in the coming year, up from a 15% buying expectation in 2012. And while 41% of Miami Today readers own condos, 27% plan to buy one or more this year, up from just 10% planning to buy in 2012.
That’s not all they plan in real estate. While in 2012 just 5% planned to buy a vacation residence, today 18% report that aim in the next year.
The optimism runs to smaller possessions as well, the kind nobody has to have but everybody wants. Three years ago 18% of readers said they planned to buy art objects in the year ahead; now it’s 68% planning to buy. Only 8% planned to buy antiques in 2012; today it’s 34%. And while just 15% of our readers in 2012 planned to buy more fine jewelry, today it’s 50%,
There are reasons to believe that a good share of these seemingly grandiose plans should become reality.
The survey shows that 52% of Miami Today‘s 68,933 readers today are millionaires, up from 43% just three years ago – more solid evidence of recovery. And at every level they report higher annual household income – 30% now are above $200,000, up from 28% in 2012, and 10% now are above $500,000 a year, up from 8%.
Reported net worth has also jumped, with more than half now reporting $1 million or more, up from 43% in gloomier days in 2012, and 13% worth $5 million or more, up from 6% three years ago.
Source: Miami Today