Miami Luxury Housing Market Spotlight

Cash Rules the Miami Luxury Housing Market

There are nearly 152k homes listed for $1 million or more in the US, and roughly 11k of them are in the Miami metro. Miami comes in third in terms of million-dollar listings, with only New York and Los Angeles outranking it. Miami has a reputation as a global playground and a magnet for the wealthy. But beyond the glitz of South Beach and the art deco facades, the metro’s luxury housing market is both vast and varied, shaped by international demand, low state taxes, and a steady influx of cash buyers.

Miami’s luxury market isn’t just defined by high price tags, it’s also how homes are purchased. In the metro, cash purchases become much more common the higher you go in price tiers.

• $750K–$1M: 36.4% cash
  
• $1M–$5M: 53.5% cash
  
• $5M–$10M: 54.1% cash
  
• $10M+: 58.6% cash
  

More than half of all Miami homes listed above $1 million are bought in cash, and the share climbs further in the ultra-luxury tier. At lower price points, cash is less dominant, just 22.6% in the $500K–$750K range, but by the time buyers cross into seven- and eight-figure properties, financing becomes the exception.

For these buyers, paying cash is rarely about necessity. Many have ample liquidity or access to portfolio funds and decide strategically whether to finance or not. Often, speed, convenience, and privacy make cash the preferred choice. Even then, luxury living in Miami usually comes with recurring HOA or maintenance fees, underscoring the ongoing cost of ownership in gated communities and high-rise towers.

This heavy presence of cash buyers helps explain Miami’s patient seller dynamic: in a market where financing isn’t a hurdle, sellers can afford to wait for the right buyer rather than cut prices.

Florida’s lack of a state income tax makes Miami an attractive haven for high earners. At the same time, the region’s lifestyle, waterfront mansions, private marinas, and a cosmopolitan dining scene have cemented its status as one of the country’s top-tier luxury markets.

In July, the Miami-Fort Lauderdale-West Palm Beach metro had just under 50,000 active listings. Roughly 1 in 5 homes, 21.3%, were priced at $1 million or more, well above the national share of 13.8%. At the ultra-high end, nearly 4% of listings were $5 million-plus, compared with just 1.3% nationally.

Fisher Island leads the pack

The undisputed pinnacle of Miami luxury is Fisher Island (ZIP 33109), a private island accessible only by boat or ferry. In July, its median list price was a staggering $11.9 million, with the top listings surpassing $50 million. Every active listing here was at least $1 million, and the median home spanned over 3,800 square feet. Fisher Island isn’t just the priciest ZIP in Miami, but in the entire nation.

Other ZIP codes with standout luxury price points include Pinecrest (33156) at $2.68 million and Coconut Grove (33133) at $1.85 million, each with more than 70% of active listings above $1 million.

Size and style vary by neighborhood

While a $5 million home in Miami Beach might mean an oceanfront modern estate with floor-to-ceiling glass, the same budget in Coral Gables or Pinecrest often buys a larger inland lot with more square footage. Across the metro, the median size for $5 million-plus listings is 1,930 square feet, but in some neighborhoods like Pinecrest, these homes easily top 3,200 square feet.

In more historic neighborhoods such as Coral Gables (33146), where Mediterranean Revival architecture dominates, the $1.7 million median list price comes with charm, mature landscaping, and proximity to Miami’s cultural hubs.

Slowing down

Like much of the nation, Miami’s luxury segment has cooled, but it’s doing so on its own terms. In July, million-dollar homes in the Miami metro spent a median of 96.5 days on the market. Even before the pandemic, Miami homes tend to stay on the market a bit longer compared to other metros. Longer timelines are expected for higher-priced listings, but Miami stands out: it has the longest median days on market among the 20 metros with the most million-dollar homes for sale.

Seller behavior is shifting as well. The latest monthly report shows that across the entire Miami market, 59 homes were delisted for every 100 new listings, more than double the rate in May (27 per 100). Yet price cuts remain rare compared with other luxury hubs. Miami’s price-reduced property share fell 0.3 percentage points from last year, compared to the 0.3 percentage point increase in New York and the 3.8 percentage point increase in Los Angeles. In fact, Miami ranks among the lowest year-over-year price reductions out of the top 10 metros with the highest million-dollar inventory. 

When focusing on the top 10% of listings, a benchmark for the entry point into the luxury tier, Miami’s median days on market stretches to 114 days. That’s noticeably longer than New York’s 86 days and Los Angeles’ 75 days, and remains the highest among the top 10 metros with the most million-dollar listings.

Sellers in Miami appear more resolute on pricing, often choosing to delist their properties rather than reduce prices further.

The global gateway effect

Miami’s luxury market is fueled by both domestic and international demand, with buyers from New York, California, and overseas competing for waterfront property. Latin America remains a key source of demand, but there’s also a notable influx from Europe and Canada, drawn by Miami’s climate, tax advantages, and business opportunities.

Outlook: Steady at the top

Even as inventory in the $1 million-plus segment expands, up 18.3% year over year, Miami’s top-tier neighborhoods remain supply-constrained. On Fisher Island, for example, there were fewer than 50 active listings in July, even after a 17% increase from one year ago. In Pinecrest, just over 300 homes were on the market, an increase of 32% from last year, despite strong interest from relocating executives and entrepreneurs.

Even as inventory grows and timelines to sell stretch, Miami’s luxury fundamentals, international demand, tax appeal, and unique coastal living suggest the city will remain firmly anchored near the top of the U.S. luxury destinations.