By Vanessa Orr
Recruiting and retaining a talented healthcare workforce is difficult, especially in areas where accessible, affordable housing is in high demand. This is especially true in South Florida, where health systems sometimes struggle to attract top talent.
“It’s been a chronic issue for a significant time,” noted Wayne Brackin, President & CEO of KIDZ Medical Services. “The real estate world in Florida, and probably South Florida in particular, goes through boom-and-bust cycles. If you hit a period of nursing or physician shortages during a boom period, you have the double whammy of trying to recruit people who are in high demand and trying to move them into an area that frequently has a much higher cost for housing.”
Since the pandemic, people migrating from other parts of the country—especially those in the finance sector—have consumed much of the housing, apartment, and condominium supply.
“People moving from New York or San Francisco found (at the time) that the cost of housing was less expensive for them, which started to drive up the price of real estate in general,” said Brackin. “Year to year, we’ve seen significant increases in the cost of South Florida homes, which has always been an issue to a certain degree, but it’s two to three times worse now.”
While those who can afford such homes are buying them, those in lower-income brackets are struggling to find affordable housing, especially if they do not qualify for subsidies. Between 2019 and 2024, for example, rent across Florida increased 39 percent.
“We’ve ended up with this dichotomy where the billionaire class or those who work for them can pay eye-watering prices for homes, while the more disadvantaged part of the market may be able to take advantage of subsidies to find housing,” said Brackin. “The problem is the ‘the missing middle’—typically nurses, technicians, police, firefighters, teachers—those who are vital to the functioning of society. Their income levels are too high to qualify for subsidies but too low to afford these wildly inflated prices.”
Finding a Middle Ground
While housing was once discussed toward the end of the recruiting process, it is now top of mind for both potential candidates and recruiters. When prospects compare the cost of where they are currently living with what it will cost to live in South Florida, many experience sticker shock; as a result, the recruitment fails.
“For the last couple of years, we’ve engaged in that part of the discussion early on so that everyone is on the same page with costs of housing,” said Brackin. “While it’s inverted the process a bit, when you don’t do that, you are at high risk of losing the recruit.”
Some long-term employees are also leaving the workforce due to the high cost of housing and the windfall proceeds they can pocket when selling their homes in such a hot market.
“It’s a curious phenomenon; I’ve seen people who have lived and worked in Miami for 20 years decide to sell their homes and cash in and move to lower-cost parts of the state or country because their homes have appreciated to such an extraordinary degree,” said Brackin. “These were not people at the end of their careers, so their moving has had a deleterious effect on retention.”
Even those willing to move further from their jobs are facing problems, as long commutes affect quality of life. While homes are being built at a fast pace in Homestead and some parts of West Broward, for example, workers are spending hours in their cars as traffic issues increase.
In early 2023, the Live Local Act was passed by the Florida Legislature, which was designed to encourage developers to build affordable housing. Developers agree to make 40 percent of new housing units affordable, which exempts them from most local zoning restrictions.
In addition to Governor Ron DeSantis’s executive backing, champions of the Live Local Act include Florida State Senator Alexis Catalayud, Miami-Dade County Commissioner Vicki Lopez, and Florida House Speaker Daniel Perez.
“It appears to have been quite a successful, bipartisan piece of legislation as it made it quicker and easier to develop property and had additional tax benefits,” said Brackin. “There have been thousands of apartments built statewide since then, though it has not been without controversy, as some local municipalities have not been happy with the lack of control concerning what is being developed in their small communities.”
While housing costs remain a concern, healthcare systems will continue to explore different options.
“It may well be that organizations will begin subsidizing housing costs to retain and recruit staff,” said Brackin, noting that the hospitality and tourism industries already do this to attract workers to live in expensive resort areas. “There are no simple solutions, but we have to start thinking differently if we expect to keep the people who keep our community’s healthcare running.”
