Is Real Estate Boom Creating Rackominium Bubble?

It’s always interesting to see how one sector of an industry effects other similar sectors. For example, it’s well-known that Florida real estate has seen abnormal development and skyrocketing price appreciation. Now that boom is fueling another one - a mania over boat storage. It seems that many speculators believe that expanding waterfront condos will erase about 1,800 boat slips in Miami.

What do you do if you can’t find a slip for your boat? Don’t worry, Miami companies that rent them out have started selling space in a new wave of luxury “rackominiums,” or dry storage spaces. They’ve convinced many boaters (and speculators) that there will be an enormous shortage once slips are eliminated with the condo expansions.

In Fort Lauderdale, Port Condominium & Marina sold 100 of 125 planned slips for up to $280,000 before its October opening.