How Is Real Estate In Miami Doing?

Real estate in Miami continues to attract national attention in 2025, with strong price growth, a resilient economy, and a complex mix of buyer behaviors and structural challenges shaping the current landscape. Despite its reputation as one of the hottest housing markets in the country, Miami is now facing a moment of recalibration — offering both opportunities and caution flags for buyers, sellers, and investors.

Strong Price Growth, Slowing Sales

Over the past decade, real estate in Miami has delivered significant returns. As of February 2025, the median price for existing condominiums rose by 8.3% year-over-year — from $420,000 to $455,000. Over ten years, that’s a remarkable 141% increase. Meanwhile, single-family homes hit a median price of $655,000, up 0.8% from a year ago and 167.3% over the past decade.

These numbers underscore the enduring appeal of real estate in Miami, particularly for long-term investors. However, there’s a shift underway. Total home sales in Miami-Dade County dropped by 15.5% year-over-year in February, falling from 1,705 to 1,440. Condominium sales plunged 21.7%, and single-family home transactions fell by 8%. Elevated mortgage rates, reduced stock market gains, and limited inventory — especially at lower price points — are all contributing to this decline in sales.

Condominiums Face Financing and Safety Challenges

While demand for real estate in Miami remains high overall, the condominium sector is encountering unique hurdles. New state regulations passed under Florida’s Building Safety Act require buildings over 30 years old to undergo structural integrity studies. These studies, along with mandated repairs, have led to massive special assessments — sometimes exceeding $100,000 per unit — for current condo owners.

In practical terms, this means many older condos are no longer eligible for traditional mortgage financing. Units flagged for “critical repairs or deferred maintenance” are being denied by lenders, pushing more buyers out of the market and driving values down for aging properties.

This challenge has contributed to an 11.4-month housing supply in Miami’s condo market as of January 2025 — a notable oversupply compared to the past. For buyers, this could mean opportunities to negotiate, but for sellers and condo associations, it represents a serious financial and regulatory obstacle.

Miami’s Position in the National Market

Despite these headwinds, real estate in Miami remains a top performer on the national stage. The Miami Metropolitan Statistical Area (MSA) was ranked the No. 2 housing market in the United States for 2025. The city’s climate, international appeal, and economic diversity continue to draw domestic and foreign buyers alike.

This popularity is part of what has driven up home values across the region. Even as other U.S. cities face price stagnation or cooling, Miami’s long-term fundamentals keep it firmly on the radar of serious investors.

What’s Next for Real Estate in Miami?

Looking forward, the forecast for real estate in Miami is a story of balance. Price growth is likely to continue, but not at the breakneck pace of the last few years. Rising inventory and cautious lending may cool the market slightly, especially in the condo segment.

Buyers can expect more negotiating power and a wider range of options. That said, they should be mindful of the financial implications of buying older condos — especially when factoring in pending assessments and insurance hurdles.

For sellers, particularly those offering updated or newer properties in prime neighborhoods, demand remains steady. But they should prepare for longer listing times and ensure competitive pricing. Transparency about building condition and repair history will also be key in securing buyer confidence.