Incorporation & Real Estate Profiteering - Who Loses?

One of the incentives presented by those who promote incorporation is that it will increase your property value. Having a brand name for the community and perhaps a few cosmetic enhancements to the neighborhood [that you'd be helping pay for whether you want them or not] to appeal to home buyers and renters in theory could raise market values, although there may not be much of a premium over similar properties in a non-incorporated area. For the sake of discussion let's suppose that those envisioning this value increase may see some of what they desire in terms of property value increase if their wish of incorporation comes true.

What is the effect of those value increases for everyone in the community? Who does it help and who does it harm?

It would be helpful for those seeking short term profit in real estate sales, as they can get more on their investment or a higher commission. For landlords who are renting homes or commercial spaces there is a possibility of more revenue due to higher rents if they can get tenants who can pay and if that offsets the increase in what they pay in property taxes due to the increased property value. There is a risk of landlords getting caught with property that is increasingly expensive to maintain and no tenants who can afford the higher rent. If you are selling your home and buying in the same area then any gain you make with your sale would be offset by the increase in what you'd have to pay for your new property. If you are a business owner leasing commercial space get ready for higher rents. In other parts of the County small businesses have been closing down because they can no longer afford to operate in the existing market. Here is what is happening right now in Little Havana, which will soon lose its cultural flavor as only big corporations will be able to afford commercial rent there.

https://www.miamiherald.com/news/local/community/miami-dade/little-havana/article168110927.html

This inflation of market values of property would cause financial duress to everyone else, as renters would end up paying more, property owners would face tax increases, and those just making do under the status quo might be forced to leave and find a more affordable community. As those struggling sell we can expect that developers seeking to build high rise units or other denser forms of housing (that bring more profit than a single family home in the same space) will want to buy up land and rezone it. Will the Village officials be able to resist their enticements?

For those concerned about local control consider that it would be in the interests of any corporate interest or investor seeking to get government support or approval to be lobbying a small town council rather than the 13 member County Commission. It would cost less and be mathematically easier to lobby or influence the needed number of people on the council vs. the needed number on the commission. The idea that having certain issues such as zoning be decided by a village council rather than County officials would provide more local control is based upon faulty assumptions. There are contrasting interests even among people in a local area, and often those with the greater financial resources or political clout will get their way. The factors involved can be complex and there is no assurance that local interests would truly be better represented by a municipal government. Throughout municipalities in Miami-Dade you will find many residents who complain that their municipal government officials favor wealthy special interests at the expense of the welfare or wishes of the community.

When looking at the subject of real estate values, we can ask ourselves "Is pushing out the less wealthy to usher in the more wealthy or enable developer profits the mindset that our community has?" I certainly hope not. The disparity between wages of most workers and the costs of housing, insurance, and other elements of living in Miami is already a major problematic issue. Let's not let greed fuel further imbalance in our local economy.