Household incomes in South Florida have remained flat or even declined over the last five years, according to newly released Census figures.

For Broward County households, between 2003 and 2008, median annual income went up $1,671. For Palm Beach households, income actually declined, by $1,182.

“If people feel like they’re not any farther ahead than they were five years ago, it’s not all in their minds,” said Cora Barnhart, associate professor of economics at the Rinker School of Business at Palm Beach Atlantic University.

South Florida’s flat-to-declining household incomes in recent years were far outpaced by the strong upward trend in prices for consumer goods.

In South Florida, local inflation was high, pushing prices up at a 5 percent to 6 percent rate in 2006 and 2008.

The Census report makes it clear that Florida has been through a major change in fortunes.

Between 2003 and 2007, state and South Florida incomes rose in several years, although some changes were small and there were declines in some years. In good years, incomes generally were growing along with the housing industry’s boom until the bubble burst in 2007.

“We were seeing a nice up trend until we hit the worst recession since the Depression,” said economist Sean Snaith of the University of Central Florida. “Anytime economic output falls, so does income.”

The kick of the recession that began in 2007 was especially hard on South Florida.

Income normally goes down during a recession, but the drop in incomes last year was much sharper than in other economic downturns. In 2008 compared to 2007, after inflation is subtracted, the median household income for the nation fell 1 percent. Half of all household incomes where higher and half, lower.

Median household incomes fell 4 percent statewide in Florida, 3 percent in Miami-Dade, 5 percent in Palm Beach and 6 percent in Broward.

In the recession of March to November 2001, household incomes after inflation fell 3.5 percent nationwide. In the recession before that, from July 1990 to March 1991, incomes fell 3.9 percent.

Where does declining income leave Floridians? With far less purchasing power, said Economist Antonio Villamil, dean of the St. Thomas University School of Business. He said such figures give him doubts about the strength of the economy’s recovery.

“Consumer spending will be relatively weak for the next year or so. The consumer needs to recover,” he said. “Since 2003 they’ve been living on credit cards and flipping condos. The bottom line is, that’s over now. And the banks have tightened consumer lending and second mortgages.”

What’s more, Snaith said, people are saving more, as they try to recover from losses in the stock market.

For this year, labor expert Bruce Nissen, who is on leave from Florida International University, said he expects the income-drop to continue.

When 2009 figures are collected, Nissen suspects the median household income for 2009 will be less than it was in 2003.