10 Things to Know about Miami Real Estate
Miami's real estate market is a dynamic and complex mix of ultra-luxury estates, a cooling condo sector, and continued high demand from international and domestic migrants. Navigating this market requires understanding its bifurcated nature, regulatory changes, and economic drivers.
Here are 10 key factors to consider for the Miami real estate market in late 2025:
1. A tale of two markets: luxury vs. mid-range.The market is not uniform. The ultra-luxury segment (over $10 million) remains strong, with brisk sales and rising prices driven by wealthy buyers less impacted by interest rates. Meanwhile, the mid-luxury and core markets ($1 million–$6 million) have seen increased inventory and longer selling times as buyers are more sensitive to high interest rates.
2. The condo correction.The resale condo market is facing headwinds, particularly for older buildings. Prices have softened due to rising inventory, higher insurance costs, and stricter safety regulations following the Surfside collapse. Some older condos are likely to see downward price pressure due to expensive assessments.
3. Single-family homes remain resilient.The single-family home market has proven more stable than the condo sector. Prices have remained steady, especially in desirable neighborhoods like Coconut Grove, Coral Gables, and Pinecrest, where demand is supported by strong school districts.
4. Cash is still king.A significant portion of Miami's market is composed of cash buyers, especially in the luxury tiers. For homes over $1 million, over half of transactions are all-cash. These buyers are less affected by mortgage rates and can help stabilize the market against price declines.
5. Branded residences are booming.Pre-construction and branded residences are a bright spot, attracting buyers with the promise of a curated luxury lifestyle and amenities. Buyers are drawn to the prestige and high-quality construction, and many are willing to pay a premium for a new build over an older property.
6. New developments are increasing inventory.A wave of new pre-construction condos is entering the market, adding fresh inventory and contributing to the buyer-friendly conditions in some segments. This increased supply, particularly in areas like Brickell and Edgewater, is giving buyers more options.
7. High insurance costs impact affordability.Florida's real estate faces the challenge of rising insurance premiums, especially in hurricane-prone areas. These increased costs can dampen demand and put pressure on prices, particularly for older buildings that may require expensive upgrades.
8. International interest persists.Miami continues to attract a strong and diverse pool of international buyers. The city's status as a global hub, tax advantages, and climate draw investors from Latin America, Europe, and other parts of the world.
9. Neighborhoods tell different stories.Market conditions can vary dramatically by neighborhood. While waterfront properties in areas like Fisher Island and Miami Beach command top dollar, other areas like downtown condos face oversupply issues. Investors and buyers need to analyze local trends rather than rely on city-wide averages.
10. Buyer leverage is growing.With rising inventory and slower sales in many segments, buyer leverage is increasing. More homes are selling below asking price, and days on the market have lengthened. For those able to navigate the costs, the current climate presents more opportunities for negotiation.
-Strozier Management, Miami Property Management
