Luxury home prices soaring in Miami Beach

Miami /
Feb.February 23, 2015 04:00 PM

Prices for luxury homes in Miami Beach have exploded since last year, far outpacing other luxury markets in the U.S.

Miami Beach saw a 66 percent increase in prices, with an average cost of $8.3 million per sale. This growth was driven by foreign buyers looking to retain their wealth in U.S. real estate, according to the Redfin research center.

Los Angeles was second on the list for the priciest luxury homes with an average of $4.8 million per sale, followed closely by San Francisco with $4.66 million. Miami Beach’s growth was three times greater than both cities combined.

Fort Lauderdale’s luxury prices fell 5 percent last year to $2.35 million.

Redfin defines luxury homes as the top 5 percent of the market’s price bracket. Miami Beach’s lower 95 percent also saw significant growth at 25 percent.

Delray Beach was among the list of cities where luxury was outpaced by lower priced homes. With an average sale price of $1.79 million, the city’s luxury market dropped 18 percent from last year. The remaining market grew 12 percent.

The Redfin report states Miami Beach will likely be the tip of the iceberg and predicts that other coastal and inland cities popular with foreign buyers will experience similar booms.

 

Related Articles

arrow_forward_ios
A photo illustration of 12203 Tillinghast Circle in Palm Beach Gardens (top) and 6300 North Bay Road in Miami Beach (Getty Images, Old Palm Golf Club, Coldwell Banker)
Flipping crazy: South Florida’s top resi flips of the year so far, ranked
Flipping crazy: South Florida’s top resi flips of the year so far, ranked
Ken Griffin in the center, with Brickell (right) and Palm Beach (below)
Ken Griffin’s Citadel comes to Brickell — and supercharges the market
Ken Griffin’s Citadel comes to Brickell — and supercharges the market
Don Peebles, in partnership with former Miami Beach Mayor Philip Levine and developer Scott Robins, wants to build a six-story office and apartment building on a city-owned parking lot (Rendering courtesy of 1664 Meridian Ave General Partner LLC)
Miami vs NYC: A developer’s guide
Miami vs NYC: A developer’s guide
From left: Monroe Capital’s Theodore Koenig, Steve Witkoff, HFZ's Ziel Feldman and Benny Shabtai with the Shore Club (Monroe, Witkoff, HFZ, Getty)
Judge awards $5M to Israeli mogul in HFZ lawsuit over failed Shore Club project in Miami Beach
Judge awards $5M to Israeli mogul in HFZ lawsuit over failed Shore Club project in Miami Beach
Prive at 5000 Island Estates Drive in Aventura (Condo.com, getty)
Privé in Aventura closing tops Miami-Dade’s weekly condo sales
Privé in Aventura closing tops Miami-Dade’s weekly condo sales
Carillon Miami Wellness Resort at 6801 Collins Avenue in Miami Beach (Google Maps, Getty)
Z Capital loses attempt to slap Miami Beach condo owners with $8M assessment
Z Capital loses attempt to slap Miami Beach condo owners with $8M assessment
Companies principal Alan Macken with Koya Bay
Macken scores $16.5M construction loan for Koya Bay townhome development in North Miami Beach
Macken scores $16.5M construction loan for Koya Bay townhome development in North Miami Beach
Juan Jose Zaragoza and Fernando Perez-Hickman with 429 Lenox Avenue (LinkedIn, Google Maps)
Madrid-Miami JV buys WeWork leased office building in South Beach for $37M
Madrid-Miami JV buys WeWork leased office building in South Beach for $37M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...