As GOP candidates come to Florida, housing emerges as central issue

Miami /
Jan.January 24, 2012 04:30 PM

As the battleground for the Republican presidential nomination moves to Florida, the key issue has become the nation’s housing crisis. Both the New York Times and U.S. News & World Report noted that as a result, frontrunners Newt Gingrich and Mitt Romney have altered their rhetoric on housing.

Romney has previously said that the best cure for the housing market is time. He’s supported a hands-off approach that allows the market to hit its bottom and then recover naturally. But immediately upon hitting Florida he declared that “it’s time to turn around” declining home values. The Times also quotes him saying yesterday “the idea that somehow this is going to cure itself all by itself is unreal.” Rather than extoll his policies aimed at remedying the crisis, Romney turned to critiquing Newt Gingrich’s highly-paid involvement in Freddie Mac, which Romney said was among the biggest factors in the bust.

Gingrich, on the other hand, has managed to avoid getting his principles and his housing policy tangled by focusing on banks. He wants to repeal Wall Street regulations, such as Dodd-Frank, that he claims are preventing smaller banks from lending to prospective buyers whose demand could help clean up the housing mess.

U.S. News & World Report used Trulia data to show the weight Florida’s housing market carries with the country as a whole, proving the importance of each candidate leaving the state with a clear policy.

“So much of the search activity we see comes from the Northeast and the Midwest, so people all over the country care about the Florida housing market,” said Jed Kolko, chief economist at real estate website Trulia. “Because the Florida housing market gets more national attention, it takes on more importance.”

Because of the depths of the foreclosure backlog in the state, Kolko said classic conservative laissez-faire policy would likely be unpopular and ineffective when it comes to housing. [NYT] and [USNews]


Related Articles

arrow_forward_ios
Daisy Chaplin and Charles Prince with the property at 6000 North Bay Road (Getty, Google Maps)
Late Broadway legend Harold Prince’s children settle dispute over family’s North Bay Road mansion
Late Broadway legend Harold Prince’s children settle dispute over family’s North Bay Road mansion
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
The Variety Hotel (Getty)
Lender acquires Variety Hotel in Miami Beach following foreclosure suit
Lender acquires Variety Hotel in Miami Beach following foreclosure suit
Branden Muhl, James Vosotas and Hotel Greystone at 1920 Collins Avenue, Miami Beach (Google Maps, Mahaska, Trans Inns)
Hotel Greystone to reopen in September amid partnership break-up
Hotel Greystone to reopen in September amid partnership break-up
Grand Hotel Fort Lauderdale and Sheridan Capital's Aaron Kurlansky (Facebook via Fort Lauderdale Grand Hotel)
Fort Lauderdale hotel resolves foreclosure suit with $11M refi
Fort Lauderdale hotel resolves foreclosure suit with $11M refi
Variety Hotel (iStock)
Miami Beach hotel heads to foreclosure auction
Miami Beach hotel heads to foreclosure auction
Developer Louis Birdman (One Thousand Museum, Getty)
One Thousand Museum developers score $90M refi to stave off foreclosure
One Thousand Museum developers score $90M refi to stave off foreclosure
A rendering of the the property at 3601 North Miami Avenue and HES Group CEO Francisco Arocha (Photos via HES, Francisco Arocha)
Midtown Miami Triptych dev site owner files for Chapter 11 amid foreclosure
Midtown Miami Triptych dev site owner files for Chapter 11 amid foreclosure
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...