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Say goodbye to the days of snagging a cheap starter home in South Florida. That ship has sailed, and it’s been replaced by a yacht for millionaires.
Back in the day — particularly five years ago in the early days of COVID-19 — $1.1 million got buyers a fancy house and a spot among the top dogs. Now, they need $2.6 million just to keep up, and even that won’t buy much. The little guy’s dream of owning a home down there is pretty much kaput.
The numbers don’t lie — and they’re brutal.
In Palm Beach County, 24% of houses sold last year went for $1 million or more, according a report from Miller Samuel and Douglas Elliman. Miami-Dade is close behind at 23%.
Things are speeding up, too. Long-affluent Palm Beach had a 56% jump in million-dollar sales this past December, the biggest spike since May 2021. The Miami Association of Realtors says high-end homes are taking over the market, and there’s no stopping it.
“South Florida still doesn’t have enough inventory to meet demand,” says Eddie Blanco, the 2025 Miami Chairman, in the report. “Wealth migration to Miami remains high. Buyers from high-taxed, high-density states continue to move here for our jobs, weather and lifestyle.”
Cash rules everything around here — West Palm Beach was No. 1 in the US last year with 49.6% of sales paid in full upfront, while Fort Lauderdale and Miami hit a respective 38.9% and 38.1%, according to ATTOM.
That’s great if you’re loaded, but if you’re stuck with a mortgage and languishing high interest rates, good luck.
Check out January 2025: Miami-Dade’s $1 million-plus house sales went up 3.1% to 164 deals, and the middle price for those homes jumped 7.1% to $675,000 — that’s a jaw-dropping 184.2% more than it was in January 2015.
Condos aren’t cheap either — their middle price crept up 2.3% to $415,000, nearly 120% higher than a decade ago.
“We’re seeing the spring market off to a healthy start, with sales and prices broadly up from one year ago,” says Miami Realtors chief economist Gay Cororaton in a report. “What’s driving the market is the upper price tier, with strong growth in the $600,000 and over and million-dollar market.”
For the super-rich, it’s a feeding frenzy.
In Miami-Dade, the price for a top 5% house shot up 22% in 2024 to $3.3 million, and the top 1% “ultra-fancy” ones hit $10 million, a 38% jump, per Miami MLS data.
Condo prices for the big spenders climbed too — $2.3 million for the top 5% and $6.3 million for the top 1%. Golden Beach is king with a middle million-dollar price of $8.7 million, followed by spots like Bal Harbour ($3.1 million) and Pinecrest ($2.6 million).
But starter homes? They’re history.
Sure, some cheaper condos are selling—$200,000 to $250,000 ones went up 10.3% to 75 sales, and $400,000 to $600,000 ones rose 4.7% to 178 in January 2025. But with barely any homes to buy — inventory’s down 9.9% from normal, and condo listings are 27.3% below pre-COVID days — it’s slim pickings.
Florida’s trying to help with a law pushing developers to build affordable homes, but it’s not enough when the wealthy keep pouring in.
Bottom line: South Florida’s a millionaire’s paradise now. They’re scooping up huge homes with cash while average Americans are having trouble getting their foot in the door. With home equity gains almost double the national average — $542,175 in Miami-Dade from 2009 to 2024 compared to $310,232 nationwide — becoming a homeowner there is growing increasingly difficult.
