By Vanessa Orr

Florida not only has an aging population, but an increasing population as well: between July 2020 and July 2024, over 24.7 percent of those relocating nationwide chose the state as their new home. Unfortunately, this has put a huge strain on affordable housing, especially for people in the middle class like many healthcare workers, police, firefighters, teachers, and more.

“Since COVID, there has been a massive rush of new residents coming to Florida from other states, which has driven up the cost of living,” explained KIDZ Medical Services Chief Financial Officer Lindsay Mendiola, CPA, MBA, CMPE. “This is making it much more difficult to recruit and retain front-line healthcare employees, including medical assistants, nurses, nurse practitioners, physicians and more.”

A private, physician-owned multispecialty healthcare organization committed to excellence in neonatal, pediatric, and women’s healthcare since 1988, KIDZ Medical Services employs more than 400 clinicians and team members who care for patients and families across dozens of hospital partner sites and medical practice locations throughout South Florida.

“We’ve seen more job offers declined due to cost-of-living issues,” Mendiola added. “While pay ranges are based on market rates, they don’t necessarily align with what employees can afford in South Florida.”

While South Florida healthcare workers looking for affordable housing can live farther from their jobs—for example, in Homestead, West Kendall, or farther north—the lack of a fully developed public transit system limits their ability to get to and from work. Two-hour commutes and higher gas prices are also not sustainable for young professionals, especially those with young families.

Prices are Skyrocketing

Many people who have moved to South Florida have come from high-cost areas, including California and the Northeast. Wealthy individuals from South America are also moving to the area, driving up home prices even more.

“Some of these homebuyers come in with cash deals and willingly pay asking price or above,” said Mendiola. “We’ve seen a 40 percent increase in average rental rates, even more so around healthcare facilities.

“It is especially difficult to attract and retain talent in the pediatric world where there is already a small and shrinking pool of subspecialists,” she added. “Even if they want to buy a house here, they can’t afford it.”

This is also creating problems for medical schools, which have nowhere to put incoming students. Regular university housing doesn’t work for these students, some of whom are married, and as a result, students are scattered around town instead of concentrated in an area on or near campus.

Healthcare professionals are also leaving for other areas as they realize the windfall they can get from selling a home.

“If a person moved here 20 years ago and bought a house, they ended up with a lottery ticket,” said Mendiola. “A home bought for $150,000 may now sell for up to $1 million. It’s understandable that they may want to sell that property and move somewhere less expensive while making the same amount that they are making here.”

Collaborating on Solutions

One bright light in the struggle for affordable housing is the Live Local Act, which was passed by the Florida Legislature in early 2023. Through the Act, developers agree to make 40 percent of new housing units affordable, which exempts them from most local zoning restrictions and provides tax benefits.

Since the Act was established, thousands of apartments have been built statewide, and even more projects are in the pipeline. This includes an 842-unit development by the real estate company Related Group in the Miami Health District, home to Jackson Health System and University of Miami Health System campuses.

“If you’re a South Florida hospital bringing talent in from other parts of the state or country, it makes sense to have a block of apartments leased where these employees could live for a period of time, perhaps subsidized by the hospital, so that they could acclimate to the area,” said Mendiola, noting that KIDZ Medical Services is working on a number of different ideas to help with the housing crisis. “Otherwise, they come down one weekend and drive around looking for homes, then they leave and never come back. They are shocked by the prices.”

At the microlevel, healthcare facilities are already seeing day-to-day impacts from recruitment losses, including shortages of both specialists and front-line workers. This is also true in other fields, where potential employees are being priced out of the market.

“What happens from a macroeconomic standpoint is that municipalities that hire police and firefighters and teachers will have to pay more,” said Mendiola. “The pace of compensation cannot possibly keep up with the increased cost of housing, but the people who provide these services will have to get paid.

“At some point, that money has to come from somewhere, including increased taxes,” she added about the cascading problem. “So we address the housing issue, or people will have to live with an even higher cost of living.”