Excellence Through Mediocrity: more on the real estate bubble: condos in south florida

interesting csm article on the real estate frenzy in miami (although, the article is probably more balanced than i paint it):

Lines of people waiting to buy condos for quick profits and white-hot real estate - it's all part of what some analysts are calling the biggest real estate bubble in America. In Miami, the construction crane could become the new state bird as some 25,00 new units are punching into the skyline - with another 40,000 on the drawing board. And with prices going up 27 to 37 percent per year in the past two years, some buildings' ownership is up to 70 percent investors.
[...]
For economists, one of the red flags in Miami, as in other white-hot markets, is the home-price-to-income ratio. The higher the ratio, the more the buyer has to stretch to make payments. Since 2001, home prices in Miami are up 85 percent, nearly double the national average, according to the Office of Federal Housing Enterprise Oversight. At the same time, per capita income growth has averaged below 3 percent.