Miami-Dade County's Luxury Real Estate Market Shows Resilience Amid Economic Challenges

South Florida is witnessing an unprecedented trend in its real estate market. With the incredibly high demand for luxury properties, Miami-Dade County is on track to achieve the second-highest number of home sales priced at $10 million and above in a single calendar year. According to the latest statistics from the MIAMI Association of REALTORS® and the MIAMI Southeast Florida Multiple Listing Service, 2025 could see up to 426 ultra-luxury sales. This figure closely approaches the record of 444 transactions established during the pandemic-driven buying frenzy of 2022.

Eddie Blanco, Chairman of the MIAMI Board, articulates why Miami captivates ultra-high-net-worth individuals: "Miami is where ultra-high-net-worth individuals want to live. The real estate here offers exceptional value, backed by a business-friendly government, no state income tax, a burgeoning FinTech sector, and year-round sunny weather." He notes that amid this luxury market boom, affordable 30-year condo units in Miami-Dade also remain resilient, maintaining their value despite broader economic fluctuations.

As of July 2025, the median price for these condos was a modest $294,000, slightly down from $298,500 in July 2024. This hints at a sustained demand, particularly from first-time homebuyers eager to enter the market. Starting January 2025, new regulations compelled inspections of older condominium buildings, making them safer and more appealing for financing. This change is expected to bolster buyer confidence and expand opportunities for new homeowners.

Interestingly, the market for single-family homes in Miami-Dade is thriving as well. Sales of single-family homes exceeding $3,000 per square foot surged dramatically, with 28 transactions recorded between January and July 2025—an increase of 115% compared to the same timeframe last year. This surge further consolidates Miami's status as a leading environment for ultra-luxury real estate.

While the total home sales dipped 16% year-over-year, from 2,122 to 1,782, this can be attributed to high mortgage rates and a dwindling inventory of properties in desirable price brackets. Notably, this total does not factor in new construction, pre-construction, or condo conversions, which continue to attract buyers. According to the MIAMI REALTORS®' inaugural New Construction Global Sales Report, international buyers bought nearly half (49%) of all new construction and condo conversions in the South Florida area over the 18 months ending in June 2025.

The luxury condo market in Miami-Dade also exhibited steady performance, with $2 million-plus sales remaining unchanged year-over-year at 59 transactions. This relative stability underscores the robustness of the market. However, total condo sales dipped by 17.3% during the same period, mainly due to elevated mortgage rates and a lack of available units at key price points. The challenge of securing FHA loans for many existing buildings further complicates matters, with a mere 21 out of 2,397 condominium buildings in the region being approved for such loans.

On the flip side, Miami's home prices have more than doubled in the past decade. The median price for condos rose by 108% from $195,000 in July 2015 to $406,000 in July 2025. Meanwhile, the median sale price for single-family homes saw a slight year-over-year decrease of 1.5%, bringing it to $660,000 this July, though that's a staggering 138.3% increase from a decade ago when it stood at $277,000.

Despite the evident price fluctuations, Miami remains competitively priced compared to other global cities. A $1 million investment in Miami can procure about 58 square meters of prime real estate, a size markedly superior to what buyers can get in Monaco, New York, or London.

Home equity in Miami has also been trailblazing, with gains reaching nearly twice the national average for properties purchased a decade ago. As homeowners benefit from property value appreciation, the wealth disparity between homeowners and renters widens, reflecting a national trend.

With ongoing elevated mortgage rates expected to sustain a buyer's market, prospective buyers may find opportunities to negotiate better terms. As of July 2025, the median sales price received for single-family homes was about 94% of the original list price. Interestingly, cash sales accounted for 37.1% of all transactions, showcasing Miami's strong appeal among foreign investors, many of whom opt for all-cash purchases.

As Miami continues to adapt to economic changes and evolving buyer demographics, the luxury real estate market stands as a symbol of resilience. Buyers, builders, and policymakers alike appear eager to transform the landscape, ensuring that Miami remains a compelling destination for homeownership and investment in the years ahead.