Luxury Home Demand Surges In Miami | Real Estate

The market for luxury homes in Miami is surging right now, with more wealthy people looking to lay down roots in the area as it becomes as popular as some residential neighborhoods in Los Angeles and Long Island.

The region, which was previously known for its condo boom, is looking to branch out and offer new ultra-luxury properties to wealthy individuals, with sales likely to go north of 400 by the end of the year, eclipsing the previous post-pandemic record in 2022 of over 422.

“Miami is now very much seen as the playground for the ultra-wealthy,” explains Mortgage Quote, a mortgage broker that helps high-net-worth individuals find jumbo loans. “Because of changes in government policy and the overall progress in the local economy, a lot of people want to live in the state, specifically Miami with its beachfront, hotels, bars, yacht clubs, and golf courses.”

The luxury boom is partly being fuelled by changes in residency preferences of the wealthy. Previously, the coastal elite stuck to California and the New England states. However, that’s now changing, with Miami becoming a hotspot for new building and real estate development.

Meanwhile, the market for condos in Miami is now showing signs of a pause. In previous years, apartments had surged in price as investors looked for places to park their cash. However, the number of buildings that have gone up in a short space of time is immense, and many condos are selling for a fraction of the price that they did in years previous, with some counties, like Broward, recording a fall.

Part of the reason for this had to do with burdensome homeowner’s association fees. Many occupiers simply can’t afford to pay rents and fees to maintain all the local facilities in some areas. This issue hasn’t yet traveled to Miami as a whole, but the pinch is being felt.

Less well off families are also seeing a slow down in their ability to afford housing in the lower reaches of Florida, where construction has been most rampant. Recent rises in apartment values means that organic purchases are decreasing and investment speculation is rising. Many condo associations charge big ticket prices for repairs to buildings that most of the occupiers can’t afford, and didn’t expect to have to pay for many years before they bought.

According to statistics, the average price of a property in Miami-Dade county is now $660,000, which is a slight decrease from the same time last year. Houses have fallen by around 1.5% in value, while condos are down 4.5%, according to official statistics. In Broward, it’s a similar story of stagnation, with similar price changes.

The number of sales has fallen in both areas as well. Many commentators believe this change is making the market more “balanced,” but it is unclear what the next step is for local people.

“Many people don’t realize that they can afford the home they want,” Mortgage Quote explains, “but that it is just a case of finding the right provider. Some mortgages are significantly less expensive than others, and there can be a large difference between carriers, depending on who you choose.”

Meanwhile, the luxury home market in Florida is doing far better. Condos above the $1 million price point actually saw a price increase of around 3.6% in the year to February 2025, with over 170 transactions of that nature recorded in the county. This essentially follows the trends in the area, where apartment sales have surged by over 100% since the pandemic and the opening of the economy.

Part of this has been driven by the transformation of the city, turning it more into a playground for the wealthy. Developers have built some landmark properties in the region in the hope of attracting billionaires, with some compounds estimated at more than $250 million to complete.

However, it’s not hard to see how non-property factors have played a role in Miami’s boom period. Not only does the city have some of the best weather in the country, but it also offers sandy beaches and a business-friendly environment. That’s hard for developers in places like London and Switzerland to compete with, especially since Florida is a part of the contiguous United States.

Many international buyers are also setting up their homes in Miami and seeking opportunities. Interest is growing due to the ritzy waterfront views and the presence of high-class amenities that have been set up to cater to wealthy individuals. Overall, the luxury market is still growing at around 5%, despite pull backs elsewhere in property demand.

This surge in demand hasn’t come without growing pains, however. Inventory for new homes is actually rising, and at the same time, condos, meaning that the years-long supply crunch might be coming to an end soon (hence the stagnating or falling prices in many counties).

“It’s not a sprint but a marathon,” says Mortgage Quote, which follows property markets carefully across the U.S. “It’s not just a question of 2008 all over again. What we’re seeing is the natural ebb and flow of the market, but with support at the luxury end due to the sheer demand to live and work in the Sunshine State by the ultra-wealthy. Miami’s luxury real estate market is head and shoulders above many others in the country right now, and many of the most successful people have noticed and are looking to move to the state to enjoy the unique atmosphere and opportunities it offers.”

Whether Miami will continue to retain its title as the leading billionaire playground in the U.S. remains to be seen. With a recession looming next year, the market could slow down and wealthy individuals may decide to hoard their cash instead. Furthermore, developers may find that their credit lines dry up and that the supply of new housing stalls or stops. It’s not clear.

Even so, now might be a good time to buy in the region. The market is still booming and making progress.