Fort Lauderdale’s luxury residential market has the wind in its sales this year as buyers come off the sidelines. But brokers and lenders are cautiously watching for possible oversupply in a market that lags behind its high-profile neighbors.
The city, often referred to as the “Venice of America” for its miles of canals and strong boating culture, lags behind Miami and Palm Beach in pricing and luxury deals. But the pandemic boosted the market for luxury homes throughout the tri-county region, vaulting Fort Lauderdale’s home prices to previously unimaginable heights.
A series of record sales in 2024 culminated in financier Donald Sussman’s $70 million sale of his waterfront mansion, which ranked as one of South Florida’s most expensive deals overall that year –– a first for Broward County.
Then, President Donald Trump announced his “Liberation Day” tariffs in April of last year, spooking buyers, said Compass agent Tim Elmes.
“The market stopped dead,” he said. “Last year was pretty awful.”
But the tide has turned in Fort Lauderdale, where a recent series of pricey deals signals renewed strength in the luxury market.
Billionaire WeatherTech founder David MacNeil sold a waterfront mansion in April for $34 million, and another for $26 million this month. In March, Seth Cohen, one in a pair of brothers that co-chairs Deerfield Beach-based Insurance Care Direct, sold a 1.4-acre waterfront lot at 1818 Southeast 10th Street for $42.7 million, property records show. The buyer is Ben Koppenhoefer, the founder of yacht equipment and technology suppliers.
Market insiders described Fort Lauderdale as distinct from neighboring luxury enclaves in Miami-Dade and Palm Beach counties. The buyer demographic is predominantly American and not as willing to spend at record prices as those Coral Gables and Palm Beach.
“The buyer there is a different profile,” said Zack Simkins, a managing partner with the lending firm Vaster. “They don’t need the lavish, ultra-extravagant home.”
Top Compass broker Chad Carroll said there is a lot of wealth in the coastal city, but “it’s not as flashy.”
The buyer profile is part of why Simkins says he’s approaching lending in Fort Lauderdale with caution.
“I’m definitely not as bullish on Fort Lauderdale as I am in key Miami submarkets,” he said.
Simkins and Carroll noted a glut of spec homes on the market creating a supply imbalance and softening demand and prices.
“The quality product in A++ locations is selling,” Carroll said. “That $7-to-$15 million range, which is the majority of Fort Lauderdale, there is a lag.”
Brokers say buyers want new construction, turnkey homes with a lot of waterfront that allows docking their yachts in the backyard. They are drawn to Fort Lauderdale’s boating lifestyle, smaller-town feel and slower pace of life, Elmes added. Buyers also get more for their money in Fort Lauderdale, where the ceiling is about $4,000 per square foot, compared to Miami, where luxury sales can range from $5,000 to $6,000 per square foot, according to Redfin.
Brokers don’t expect prices in Fort Lauderdale to be reaching the heights of its ultra-luxury neighbors anytime soon.
“Miami has this global world stage image,” Elmes said. “I don’t know that Fort Lauderdale is going to compete with that.”
But what exactly brought the buyers back this season?
Market insiders said the roaring stock market, price drops and the waning patience of buyers who wanted to wait out macroeconomic turbulence have all contributed to Fort Lauderdale’s momentum. According to Elmes, people are more willing to spend in the post-pandemic world.
“The geopolitical picture is anything but stable,” Elmes said. “But it just doesn’t seem to matter.”