Interview: Kareen Boutros

Kareen Boutros

Executive Director Broward Workshop

What factors will help Broward rebound from the downturn faster than other regions in Florida?

In previous recessions, the tourism, hospitality and live entertainment industries really helped the Greater Fort Lauderdale region recover faster than other regions of the country, but this time, gatherings were not allowed due to COVID-19. This time around, these are the industries that have been hit the hardest. Conversely the real estate, home improvement, automotive, technology and financial service industries have performed amazingly well. Our year-round great weather, outdoor activities and quality of life along with no state income tax and low corporate taxes attract people and businesses from the Northeast and California as well as other countries.

I can tell you that the business atmosphere in Broward County is very collaborative in nature. Business leaders, government, civic and nonprofits work together to achieve common goals. Everybody enjoys working together and it has been like this for over a decade.

Broward is located in the sweet spot between Miami and Palm Beach, so we o er the best of all worlds.

What is your outlook for the major initiatives playing out over the next year?

I believe things are gradually improving. However, we need to remain careful. Of course, there is a segment of the population that will continue to struggle, and we must pay attention to those people who were really set back financially this past year. As we move toward the new normal, we have many issues and initiatives to deal with. Hopefully, Congress will approve a long-awaited infrastructure bill that is desperately needed by all states.

The business community along with all our community stakeholders are working very hard in every sector and I’m impressed with their commitment, resilience and dedication, not only in their jobs but to the community in general. I’ve seen the best of people during this tough year working to make our community the best possible place to live, work, raise a family in, and I am proud to be a part of that.

Broward’s economy is recovering quickly due to a collective e ort by businesses, organizations and individuals alike.

( ) County School Board, Broward Health Medical Center, CHG Healthcare Services and Citrix.

Like everywhere else in the world, COVID-19 disrupted the economy and employment market in the region. When the pandemic forced the complete shutdown of non-essential international travel, unemployment in Broward County skyrocketed. In May, the county’s unemployment rate peaked at 15.2% compared with just 2.9% in February. However, as the country slowly began to return to some semblance of normality, the unemployment rate in Broward County was back down to 5.3% by March 2021. Although still a long way from pre-COVID levels, the county was able to remain remarkably strong considering the proportion of its GDP that comes from leisure-related activities as a tourism hub. By June 2020, more than three quarters of Broward County’s businesses were operating again, and the majority had not laid off or furloughed workers despite

90% reporting revenue declines. Businesses within the accommodation and food services, life sciences and arts and culture industries reported steeper revenue declines than others.

As of December 2020, the largest employment sector in the Miami-Fort Lauderdale-Pompano Beach statistical area remained transport, trade and utilities, which continues to see growth after a small contraction in the second quarter of 2020. Around 610,000 people were employed in the sector in December, not far off the 636,000 people employed a year earlier. Professional and business services also saw a dip in employment numbers during the COVID-19 pandemic but at 434,000 jobs as of December, the sector had lost just 17,000 jobs on a net basis during the year. Leisure and hospitality, however, saw a sharper decline and is taking longer to recover. In December, 274,000 people were employed in the sector compared with 338,000 in December 2019.

One of the issues that the sudden unemployment shock brought to the forefront was the affordability of housing. Certain measures were put in place to prevent evictions or foreclosures during the height of the pandemic, such as moratoriums and a halt to court proceedings. But many questioned whether the measures would serve to simply kick the can down the road. In Florida, although the moratorium was lifted on Sept. 30, tenants who could prove in court that they were materially harmed by COVID were allowed to remain until March 31, 2021. Nonetheless, uncertainty is in the air. Global investment bank Stout says that more than 14 million U.S. households are at risk of eviction with around $25 billion in rental debt.

The rental landscape will only add to South Florida’s affordable housing woes. According to Zillow, the typical value of homes in Fort Lauderdale is $367,761, as of January 2021, with prices having increased 8.2% in the previous year. Although house prices have risen more steeply statewide at 8.6%, the average price in Florida is $270,560. One reason behind the house price increase is the decline in inventory. Single-family home availability decreased almost 50% on the year in January 2021. An estimated 2,800 chronic homeless live on the streets of Broward County and hundreds more live in publicly and privately run homeless shelters in Pompano Beach, Fort Lauderdale and Hollywood.

This provides a conundrum for authorities looking to provide affordable housing to residents. Broward Housing Solutions was founded in 1993 to provide affordable housing opportunities for lower-income communities with disabilities or mental health issues. The Fort Lauderdale Housing Authority and the Broward County Housing Authority both provide housing assistance to low-income residents. But the public sector does not always have the resources to provide ( )