By Gay Cororaton, MIAMI REALTORS Chief Economist
With elevated levels of out-of-state migration into Southeast Florida and its strong economy that has attracted business expansions and relocations, the share of million-dollar homes to total sales has steadily climbed since 2019. In 2023, the share of million-dollar homes to total single-family sales listed on the MIAMI MLS rose to 17% in 2023 (6% in 2019); for condos/townhomes, the share rose to 9% (5% in 2019).
In 2023, the top 5% of single-family home sales prices, which can be considered the luxury market segment, rose to at least $2.3 million ($1.1 million in 2019). The top 1% of single-family home sales prices, which can be considered the high-end luxury segment, rose to at least $6.2 million ($3 million in 2019), among homes listed on the MIAMI MLS.
For condo/townhomes, the top 5% of home sales was at least $1.6 million ($0.9 million in 2019) while the top 1% of sales was at least $4.3 million ($2.6 million in 2019).
Luxury Homes Tend to Be on the Waterfront With 1:1 Bedroom to Bath Ratio
Among $3M+ single-family homes sold through the MIAMI MLS in 2023, 41% were waterfront properties while 91% of condominium/townhomes were waterfront properties. Single-family homes that sold for $3M+ typically had 5 bedrooms and 5 baths with a living area of about 4,600 sq. ft. Among $3M+ condo sales in 2023, units typically had 3 bedrooms with 4 baths and a living area of nearly 3,000 sq. ft.
Top High-end Single-family Luxury Markets
In 2023, among single-family homes that sold for at least $6.2 million (high-end luxury) on the MIAMI MLS, the top five high-end luxury markets based on the median sales price in those markets were Indian Creek, Hobe Sound, Golden Beach, Jupiter Inlet Colony, and Jupiter Island, with median prices of at least $14.8 million.
By sales count, the major high-end luxury markets were Miami Beach, Miami, Coral Gables, and Pinecrest, with over 10 sales each.
Top High-end Condominium/Townhome Luxury Markets
In 2023, among condominiums/townhomes that sold for at least $4.3 million (high-end luxury) on the MIAMI MLS, the top five markets by median sales price were Surfside, Bal Harbour, Sunny Isles Beach, Miami Beach, and Miami.
By sales count, the major condo/townhome high-end luxury markets were Miami-Beach, Sunny Isles Beach, and Miami, with over 30 sales each.
Positive Outlook for the Luxury Home Sales in 2024
Southeast Florida’s robust economy and its allure to both retirees for its low taxes (zero state income tax) and to businesses expanding or relocating to the area all combine to drive the demand for luxury housing.
According to the 2023 USA Wealth Report, the city of Miami and Miami Beach combined had the 4th fastest growth in its millionaire population, with a 75% increase during 2012-2022. As of 2022, the area combined was home to 38,000 millionaires, 160 centi-millionaires ($100M+ assets) and 12 billionaires as of 2022. West Palm Beach, had the highest growth, at 90%, with its 9,400 millionaires, 64 centi-millionaires, and 6 billionaires in 2022.
A more stable economic environment is expected to ensue in 2024 as interest rates stabilize, with a high possibility that the Federal Reserve Board will start to pare back its interest rate hikes in the second half with inflation likely to move towards the Fed’s 2% target. Falling rent growth, a more balanced labor market, and slower consumer spending are factors that will ease inflation. A favorable economic environment improves the outlook for business expansions, job creation, and migration into Southeast Florida, leading to a recovery in overall home sales and sustained growth in the luxury segment.
Download the report to get more insights on Southeast Florida’s luxury market.
