They are your child’s middle school teachers. They are seniors who bag your groceries on Publix. They are bank tellers, nurses and neighbors. They may even be you. They are almost half of all Floridians, and they struggle to achieve their goals, new research finds.
They are what United Way calls Alice. Limited assets, limited income and employed. A recent report from the organization shows that most of these 4 million Florida households have stable incomes, and are usually too many to qualify for state benefits such as food and childcare support. But they live to pay their wages.
Only three states, Louisiana, Mississippi and New York, have a higher proportion of residents under such financial pressure, United Way found.
Florida’s affordable price crisis is the main driver. Surges in transplants during and after the pandemic, particularly rising costs for housing and childcare, and inadequate wages have pushed more Florida households to the brink of finance.
And if these pains aren’t being addressed, Florida Chamber of Commerce CEO Mark Wilson could be forced to leave the state, potentially damaging the local economy and communities they support.
Why do people struggle with living in Florida?
Florida has been on the rise for a long time. However, Covid-19 is overcharged. During and after the pandemic, the nation, especially South Florida, saw a massive influx of people and wealth. Miami’s billionaires population has almost doubled. High-income earners across the country were drawn to Florida’s warm climate, positive tax policies, relatively cheap real estate, and laissez-faire attitudes towards pandemic restrictions.
Inflation has raised the cost of living nationwide. In Florida, prices have been amplified by the booming housing market, which has been tense and thriving among many locals. Florida CEO Melissa Nelson United Way said housing costs have put Florida families in more economic instability than any other household costs, particularly for renters.
More than half of state renters are costly, spending at least 30% of their income on housing. Three out of ten people are incredibly costly. A housing member eats more than half of their monthly salary.
The surge in prices for other major line items, including childcare and food, outweigh wage growth and puts more pressure on Florida households.
“People were working so hard. We thought they were moving forward, we were working, the side hustle, we were moving forward,” said Stephanie Hoops, national director of United For Allis Initiative and Index Creators at United Way. “And they go to the grocery store.” There, she added, shows that USDA data has risen 30% since 2020.
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Wilson, president of the Florida Chamber of Commerce, says that it is the dynamics of wheel spinning, which is “Alice’s clear and current danger,” and the anxiety it creates. “If life in Florida is not made more affordable, many people in the workforce, especially parents, ages 20-45, will “be able to leave Florida and take their kids,” he said. In doing so, they will hit the state’s labor pool.
That’s not hypothetical. That’s a reality that’s already playing around with.
Miami-Dade County alone has been migrated and lost over 130,000 residents between 2020 and 2023, according to the FIU Metropolitan Center. More than a quarter of those are in their 20s and are a demographically important pillar of the future workforce, the Centre reported.
The 20s are Florida’s most financially bound age group. According to United Way, nearly seven in ten households led by someone under the age of 25 are struggling to achieve their goals.
Senior counterparts over the age of 65 are only slightly better. 55% of Florida’s senior households are financially tense, one of the highest fees in the country.
“Social Security will attract older households that exceed poverty levels,” she said.
Following that calculation, an average of two adults in Florida requires $74,000 a year to achieve its objectives. However, living costs vary widely across the state. The same family needs almost $90,000 to reach Miami-Dade, where the cost of living is high and 53% of households are under sharp financial pressure.
But the wages paid by many of Florida’s most common jobs have not cut it. Almost 15% of registered nurses, 20% of primary and secondary school teachers, 40% of retail salespeople and 60% of chefs are not well-made. On average, almost 40% of the state’s 20 most common work workers are located in the disastrous financial straits.
Florida’s upcoming $15 minimum wage can paradoxically spell out more problems
The horizon is not exactly rosy for many Florida workers. Many of these employers will earn a minimum wage, reaching $15 by 2026. And while more money may seem positive, it means that many of those families actually have less, says Norielle Barre, chief impact officer at United Way’s Miami branch.
The income thresholds for many government assistance programs are based on the national average, so even some of Florida’s poorest households often fall below what they earn. Small income bumps can push families to revenue limits, and put thousands of people at risk for child care, medical care, and/or food benefits, imposing even greater financial distress.
Compound interest is a cut proposed by House Republicans and the Trump administration to social aid programs such as Food Stamp and Medicaid that benefit more economically vulnerable households in Florida.
What is going on?
Despite these headwinds, Florida’s United Way president Nelson said her organization is lobbying to make affordable housing more accessible statewide. But it remains to be seen whether Live Local, a statewide affordable housing initiative (supported by United Way in Florida), will have a meaningful impact on struggling tenants. According to state calculations, the law allows studio apartments to make $87,000 in Miami-Dade.
Apart from the government, it is the employer who said Nelson could have the biggest impact on supporting struggling households, especially those with children.
“We want better child care solutions and flexibility is a big part of how we get there,” she said. Perhaps the employer provides childcare on-site. Maybe they provide flexible working hours to allow parents to have generosity in school pick-up and drop-offs. Maybe they might think about how salary increases will affect employees in terms of benefits and instead work to help workers cut costs such as day care and transportation.
Ultimately, giving a large financial breathing room to struggling families will broaden the tax base and promote consumer spending, Florida’s United Way concluded in a report.
It said it would have a “positive economic impact” on the community.
The story was created with financial support from supporters such as the Green Family Foundation Trust and Ken O’Keefe, in collaboration with Journalism’s fundraising partners. The Miami Herald maintains full editing control of this work.
