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Newsweek
05-08-2025
- Business
- Newsweek
Miami Buyers Snubbing New Condos for Older Ones
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Condo units in older buildings in the Miami metropolitan area are selling faster than those in newer buildings, according to a new report, despite recently introduced building safety regulations that threaten costly repairs and maintenance. June data from the Miami Association of Realtors shows that condo units in older buildings in Miami-Dade, aged 30 years and above, are spending at least 29 fewer days on the market than those in newer ones, averaging 62 days versus 79. That might seem counterintuitive considering that older condo buildings in Florida are the primary focus of recently introduced legislation requiring associations to conduct regular structural inspections and fund any necessary repairs. This law, which followed the tragic Surfside collapse of June 2021, has triggered a spike in inventory in the Sunshine State over the past year, as condo owners try to sell their units before facing higher costs. But experts say that demand for older condos remains strong in the Miami-Dade market—at least for well-priced, well-maintained buildings. A Bright Spot in Florida's Condo Crisis The condo market in Florida has been in turmoil for the past year, as condo owners braced for the first major deadline linked to the new legislation, December 31, 2024. In May, according to the latest data released by Florida Realtors, the median sale price of a townhouse or condo in the state was $310,000, down 6.1 percent year-over-year. This decline was much more significant than the one reported by the state's single-family home market, where prices fell by a much more modest 2.7 percent year-over-year. "Much of the disruption stems from increased insurance costs and new safety regulations following the Surfside tragedy," Tim Weisheyer, 2025 Florida Realtors President, broker-owner of Dream Builders Realty and dbrCommercial Real EstateServices, told Newsweek. "These measures are critical steps to support long-term safety and financial stability. That said, they've also introduced some uncertainty for buyers, sellers, and condo associations, especially around special assessments and insurance costs," he said. "As a result of that uncertainty, we have sellers listing their units to avoid the possibility of future costs, and buyers who are hesitant, fearing unexpected assessments after purchase. This dynamic has created a temporary imbalance in the market." An aerial view of condo buildings in the downtown area on August 01, 2025, in Miami, Florida. An aerial view of condo buildings in the downtown area on August 01, 2025, in Miami, buying a condo seems like a particularly risky investment in Florida right now, considering the threat of higher fees and more frequent, more severe natural disasters, sales have been falling all across the state in recent months, including in Miami. Miami's total existing condo sales fell by 12.9 percent year-over-year in June, from 1,085 to 945. Surprisingly, the most expensive condos are faring better in the Miami market than any other price range: sales for condos at $1 million and up increased 6.4 percent year-over-year in June, to 150 sales. But while condo prices have been plunging in Florida as a result of shrinking sales, they have held up in Miami. Miami condo prices have risen 117.1 percent from June 2015 to June 2025, from $205,000 to $445,000, according to data from the Miami Association of Realtors. Existing condo median prices increased 6 percent year-over-year in June, from $420,000 to $450,000. Miami condo median prices stayed even or increased in 161 of the last 169 months, a span that covers 14+ years. That might have something to do with the fact that in Miami the supply of condos available for sale is still below pre-pandemic level. Condo inventory surged by 36.07 percent year-over-year in June, from 9,588 to 13,046 listings. It was 15.8 percent below the inventory reported in June 2019, at 15,488 listings. Why Are Miami's Older Condos So Popular? "There's a misconception that Miami condo buyers are hesitant to purchase in older buildings, but the data tells a different story," 2025 MIAMI Chairman of the Board Eddie Blanco said in a press release. "Demand for well-priced Miami older condos remains strong, especially when factoring affordability. Condo units in older buildings is our market's entry level for first-time homebuyers, and that supply will only improve with the new state condo regulations." In the long term, according to the Miami Association of Realtors, the new regulations "will make all Miami condos more resilient, stronger and safer." Those condo buildings that would have not been financeable before because they didn't have the proper reserves, will become financeable, the association wrote in its report. This, in turn, will increase buyer affordability and opportunity. Those buying condos in older buildings, essentially, are investing in the future of Miami—which they expect to remain bright.
Miami Herald
05-08-2025
- Business
- Miami Herald
Who's buying new condos in Miami? How Latin American politics drives demand
For the major players in Miami's real estate market, the big event this August isn't in South Beach, Brickell, or even Florida. It's a two-day expo in Buenos Aires. Many of the newest towers rising along Biscayne Bay are pitched and pre‑sold in Bogotá or Brasília before most prospective buyers in Miami have even seen a rendering. Despite the ongoing turmoil over immigration policy in the United States, Latin American buyers are still a predominant force in Miami's housing market, especially when it comes to new construction. A report from the Miami Association of Realtors pooled data to track sales of new construction. The study analyzed nearly 10,000 sales across 18 months in South Florida and found that nearly half went to international buyers. Miami remains the No. 1 city in the United States for foreign homebuyers, and given the area's deep, long‑standing ties to Latin American immigration and culture, it's no surprise that most of those buyers come from south of the border. Still, the data collected by the realtors organization underscores just how dominant Latin American money is in the local market. Upper-class Latin Americans hoping to move to Miami or purchase a second home in the U.S. are certainly part of that trend in the data. But experts said that the market for pre-construction is especially dominated by wealthy Latin Americans who are probably more interested in moving their money than their families. Those buyers see a stable and lucrative investment in Miami's real estate. Within the nearly half of all new‑construction sales in South Florida that went to foreign buyers, roughly 9 out of 10 were purchased by Latin Americans. And in certain parts of the city — like downtown or Coconut Grove — Latin Americans account for virtually all international buyers. Eddie Blanco, chairman of the board of the Miami Association of Realtors, told the Miami Herald that the new report is the first analysis of its kind, made possible through a collaboration among developers willing to share their sales data. The numbers showed that foreign investors — overwhelmingly from Latin America — account for an outsized share of pre‑construction condo sales. Blanco said the data confirmed a trend he had long suspected. 'We already have a very Latino flavored area, similar climate, language and food, plus Miami's low taxes and a business-friendly environment,' Blanco said. 'Latin America has an appeal for all of South Florida — it aligns with the culture and lifestyle. ' Industry leaders said that political and economic headwinds in Latin America are helping keep Miami near the top of the global investment map. The new report posits that Latin American demand for new housing in Miami is in part driven by a rising tide of left-wing electoral success in Latin America, with the report even listing 10 notable leftist governments currently in power in the region, including Claudia Sheinbaum in Mexico and Luiz Inácio Lula da Silva in Brazil. 'Political and economic instability in a lot of Latin America — that drives activity in our marketplace,' Blanco said. 'With a lot of Latin America facing high inflation, our rising property values keep driving demand, especially for new construction.' Although the association could not immediately provide data proving a direct link between the political shifts and capital flight to South Florida, several analysts described it as a long‑standing, common‑sense trend. 'Anecdotally, we see this year after year — policy changes down South result in the flight of capital north,' Blanco said. For Latin American investors, 'Miami is a safe haven, political and financially, property rights are protected and there's a favorable investment environment,' Alicia Cervera, managing partner of Cervera Real Estate, told the Miami Herald. Political shifts in recent years in Mexico, Brazil, Colombia, Chile and other countries have prompted investors to look north, she said. Specifically, Cervera said the data showed an immediate increase in buyers in the South Florida market from Chile following the election of President Gabriel Boric and from Peru after the start of Pedro Castillo's short-lived presidency. Both leaders ran on left-wing platforms. 'When governments in Latin America go left, buyers go North,' Cervera told the Miami Herald. Another factor sustaining demand: wealthy foreign buyers' tendency to pay entirely in cash, insulating them from rising mortgage rates. Weaker exchange rates for many Latin American currencies are also prompting those with capital to park it in U.S.‑dollar assets like Miami real estate. A focus on Latin America is key to success in the Miami market, according to Zack Simkins, the managing director of Miami-based private mortgage lender Vaster. Simkins said businesses like his thrive on Latin American clients, in part because they are 'more used to a relationship‑driven economy' and appreciate an alternative to traditional banks. Simkins stressed the importance to his business of events abroad like the Expo Real Estate Argentina in Buenos Aires this August. 'Latin America is where your sales and marketing have to be,' Simkins said. 'If you ever take a trip down to South America, the magazines on your flight back to Miami are going to be littered with photos of South Florida real estate projects.' The CEO of South Florida real estate marketing firm ISG World, Craig Studnicky, was quoted in the report: 'I have a sales team in Colombia this week. I have a sales team going to Mexico next week. We are constantly traveling to Latin America because there is clearly demand for South Florida condos.' With the dollar strong and luxury Miami condo prices rising year after year, experts agree there's little reason to expect demand to wane anytime soon. The pitches made abroad by groups like Simkins' and Studnicky's are backed by a financing model tailored to offshore buyers. Miami's pre‑construction payment model — often allowing deposits over several years — is a major selling point, Cervera said, because it lets buyers lock in a dollar‑denominated asset before prices climb further. 'Oftentimes these Latin American buyers are focusing on pre-construction because it's an investment vehicle that allows them to move money over time,' Cervera said. 'They're less active in the resale market. These people aren't necessarily moving to Miami — or at least not moving to Miami tomorrow.' Real estate industry veterans say U.S. politics — especially the recent policy changes under President Donald Trump's administration — have had an impact on foreign buying, though not in the way many assume. Latin American demand for Miami property remains strong, especially among affluent condo buyers. Cervera said the data contradicts alarmist headlines about foreign capital fleeing the U.S., showing instead that in South Florida, international buyers are growing their share. But one segment of foreign demand was shown to have cooled: Canadians. 'The reality is that the foreign nationals who are actually more sensitive to immigration crackdowns and the emotional perception of what the [Trump] administration might be doing, whether it's right or wrong — are Canadians,' Simkins said. 'It's Canadians who've pulled back — they're the foreigners walking away from deals and selling their South Florida properties.' Fernando de Núñez y Lugones, the co-founder of Miami-based developer Vertical Developments, said it's likely that recent political frictions are to blame for the Canadian share of Florida's foreign buyers slipping. 'They don't appreciate the rhetoric suggesting Canada could become a new U.S. state,' Núñez y Lugones said. 'Canada has been an important market but now they're putting themselves on the sidelines, taking themselves out of the game.' For all the focus on international money, domestic buyers still make up 51% of Miami's new‑construction sales. Many are fleeing high‑tax, high‑cost states like California and New York, lured by Florida's lower taxes, its year‑round summer and — compared to other global cities — more affordable property prices. Núñez y Lugones stressed that overall, it's domestic demand that's becoming more important to the Miami market. Ten years ago, he said, 'north of 70%' of Miami real estate sales went to foreign nationals, meaning that today's 49% share represents a significant drop over time, a trend he attributed to Latin American currency devaluations and soaring property values in South Florida. 'A lot of domestic buyers are corporate relocations, people leaving states like California and New York for Miami,' Núñez y Lugones said. 'In the long-term, the U.S. domestic market is becoming more important for Miami and international buyers less so.' Still, experts say foreign demand will continue to shape the skyline, even if U.S. political controversies keep on dominating the headlines. 'Foreign demand is not winding down — it's as strong as ever and we see no reason to think it'll be less strong in the future,' Cervera said. 'Miami is a major city on the global stage and there will only be more diversification in our foreign demand, coming not just from Latin America but also from Europe and the Middle East.'
New York Post
26-06-2025
- Business
- New York Post
Once red-hot, South Florida's real estate market is in a months-long slump — here's why
Whether it's a market meltdown or a much-needed course correction, dismal home sales in South Florida are sticking around. New data compiled by the Miami Association of Realtors reflects a once-hot market in a persistent state of rebalancing. The dollar volume of sales across Miami-Dade, Broward and Palm Beach counties clocked in at $5.6 billion in May — a marked decline from $6.1 billion last May, the Real Deal reported. 'It's a validation of what we've anticipated and seen in the marketplace over the past few months, maybe even the last couple of years,' Miami-based broker Mick Duchon of Corcoran told The Post. 'Since interest rates peaked, we've seen a slowdown across the market, especially in parts of the commoditized condo space.' Advertisement 6 Sluggish condo sales have become a crisis for South Florida real estate. Mdv Edwards – 6 Luxury buyers are proving to be a resilient segment of an otherwise depressed market. Felix Mizioznikov – New waterfront villas and glittering penthouse condos are still selling at a healthy pace, but success in that corner is tempered by the grim realities of the middle market — namely condos. Advertisement While cash-rich luxury buyers can afford to breeze through the market, the average South Florida buyer is still chafing at high mortgage rates and insurance costs. New upkeep requirements on condos following the fatal 2021 Surfside condominium collapse are making older units increasingly difficult to sell. Miami-area sales dropped 20% compared to May of last year, according to the Miami Association of Realtors. Condo sales took a particular hit with a 25% dive. Nearby Broward County, which encompasses Fort Lauderdale, saw a 18% drop in sales, with a 24% dip in condo closings. Real estate insiders confirmed a steady decline in the housing market in recent months, but told The Post that numbers vary wildly across South Florida's polarized housing stock, from embattled, aging condos to attractive, multimillion-dollar new builds. 6 Today's Miami homebuyers want resilient properties in prime locations, leaving aged buildings to flounder on the market. Francisco – Advertisement 6 The consequences of the 2021 Surfside condo collapse are still reverberating. Getty Images 'There's different generations of our market, particularly Miami Beach,' Miltiadis Kastanis of Compass told The Post. 'There's pre-COVID and post-COVID. And there's pre-Surfside collapse and post-Surfside collapse,' Kastanis added. 'Those are two monumental happenings that have adjusted our real estate market, because people are less inclined to buy in an older, aging building.' Relief for the condo market is on the horizon, however. Governor Ron DeSantis signed legislation this week to ease the burden of rising fees and regulations on condo homeowner associations. Advertisement The supply of affordable homes under $400,000 across the region remains tight. Median prices in Miami-Dade rose year-over-year from $650,000 to $675,000 — the 162nd consecutive month of price appreciation since December 2011. The single-family market in Miami-Dade County was a rare bright spot in the Miami Realtors report, charting 4% price growth, but sales still declined. In nearly all other markets and categories, prices declined alongside sales. 6 Prices remain elevated in well-heeled Palm Beach, but the recent cadence of sales is closer to 2019 than 2022. Solarisys – 6 Market insiders characterize South Florida's single-family downturn as a normalization, rather than a reckoning. Felix Mizioznikov – A confluence of seasonal slowdowns, rate-wary buyers and oppressive condo rules have made for a stormy outlook in South Florida. Even the Palm Beach market saw a 12% decline in sales year-over-year. Johnny DelPrete at Douglas Elliman, based in the northern area of Palm Beach County, characterized the downturn as a period of stabilization. DelPrete said Palm Beach sellers and buyers are on more equal footing than they were in the recent past. 'I think the best way to summarize the current market is that it's just normalizing,' DelPrete said. 'We had that huge surge from the pandemic, then went from no inventory to now having months and months of inventory.' Advertisement While demand is ever-present, Duchon said, the brokers manage expectations of wary buyers and eager sellers. 'Oftentimes, people will pick out one deal over the past four years and try and meet that sale,' Duchon said. 'When, in order to sell today, we have to adjust the price to the market.'
CBS News
06-03-2025
- Business
- CBS News
Florida bill could strip insurance from noncompliant condo associations
A proposed Florida bill could strip state-backed Citizens Property Insurance from condo associations that fail to complete mandatory structural integrity reserve studies, potentially leaving thousands of residents without coverage. New penalties for noncompliance The bill, introduced by state Rep. Vicki Lopez, would penalize condo associations that have not completed the required studies, which assess a building's structural integrity and mandate financial reserves for necessary repairs. The deadline to complete the study was Dec. 31, but many buildings have yet to comply. "Our board is doing everything they can to keep us afloat, and at the same time, the people in the buildings that don't attend these meetings just don't understand," said Tony Fratianni, a resident of the Sunrise Lakes condo community in Sunrise. "I don't know if you can get water from a stone." Widespread impact in South Florida A recent study by the Miami Association of Realtors found that only 44% of condo buildings in Miami-Dade County and 41% in Broward County have completed their studies. If the bill passes, thousands of condo owners could be left scrambling for insurance in an already tight market. "We're not asking for safety to be ignored. We're asking for elderly communities to be listened to," said Walter Raser, a concerned resident. "In this situation, safety should not override the cost. It's literally gonna cost people their homes." Market uncertainty and rising costs Peter Zalewski, who runs a firm analyzing South Florida's condo market, warned that if Citizens drops coverage, private insurers are unlikely to step in. "If Citizens is saying, 'No, we're not gonna insure you,' I can bet the house the private sector is not going to insure," Zalewski said. Citizens Property Insurance currently covers 18,468 condo buildings with an association, more than half of which are in Miami-Dade, Broward, and Palm Beach counties. Zalewski predicts that if many owners lose coverage, those who retain it may face higher premiums to offset the increased risk.
CBS News
06-03-2025
- Business
- CBS News
Florida legislative bill could strip insurance from non-compliant condo buildings
A new bill in the Florida Legislature could leave thousands of condo owners without state-run insurance if their buildings fail to meet structural safety requirements. The proposed measure, introduced by State Rep. Vicki Lopez, would strip Citizens Property Insurance from condominiums that have not completed a required structural integrity reserve study (SIRS), a move that has some residents concerned about affordability and coverage. Condo owners struggle with compliance Tony Fratianni, who lives in the Sunrise Lakes condo community, said his homeowners association has yet to complete the study, which was required by Dec. 31. The SIRS mandate forces condo associations to assess their buildings, establish reserves and fund necessary repairs, costs that fall directly on unit owners. "Our board is doing everything they can to keep us afloat and at the same time, the people in the buildings that don't attend these meetings just don't understand," Fratianni said. "I don't know if you can get water from a stone." Walter Raser, another condo owner, worries the bill could financially devastate elderly residents. "We're not asking for safety to be ignored. We're asking for elderly communities to be listened to," Raser said. "In this situation, safety should not override the cost. It's literally going to cost people their homes." Widespread non-compliance raises risks A study by the Miami Association of Realtors found that as of last month, only 44% of condo buildings in Miami-Dade County and 41% in Broward County had completed the required study. Peter Zalewski, a South Florida condo market analyst and founder of said the bill's impact could be far-reaching, even for buildings that don't currently rely on Citizens coverage. "If Citizens is saying, 'No, we're not going to insure you,' I can bet the house the private sector is not going to insure," Zalewski said. Citizens Property Insurance covers 18,468 condo buildings with associations, more than half of them in Miami-Dade, Broward and Palm Beach counties. Zalewski warned that if a large number of condo owners lose their coverage, those who remain insured could face steep premium increases to offset the financial risk.
