Rampant speculation was the primary reason for the meteoric rise in South Florida real estate prices. The frenzy started when economic growth increased housing prices and property owners profited big when they sold. More people bought houses or condos, by the dozen, figuring that they’d earn a bunch of quick bucks instead of just one.

Real estate developers, sensing a potential for quick profit, got in on the act by building thousands more homes. Eventually, speculators were merely selling to one another at ever more inflated prices. And when the last to buy or build can no longer flip those houses, prices plummet. That’s what happened in Miami and other South Florida towns where investors ran out of buyers who could afford to pay.

At the height of the Miami real estate bubble, prices Miami were rising by 3% to 4% a month. Now only about 10% of homes in Miami are affordable for residents earning the area’s median income, according to the Housing Opportunity index, published by the National Association of Home Builders and Wells Fargo.

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