- Florida’s aging condo buildings face rising vacancies and plummeting prices as costly inspections and repairs drive owners to sell.
- Newer and ultra-luxury developments continue to thrive, with strong pre-construction sales and financing, despite a slowdown in wealth migration.
- The market is bifurcating: aging stock is weighed down by assessments, while new condos attract affluent buyers and major lenders.
A Tale of Two Buildings
According to the Commercial Observes, in Miami Beach’s Mid-Beach, two neighboring condo towers represent opposite sides of South Florida’s diverging market. The Carriage House, built in 1967, has at least 26 units sitting unsold. Just next door, The Perigon, a new luxury development backed by Mast Capital and Starwood Capital, is more than 75% sold and recently secured a $390M construction loan.
The Bifurcation
Since the 2021 Champlain Towers South collapse, the Florida Legislature has mandated stricter inspections and reserve requirements for buildings over 30 years old. The result? A flood of aging units hitting the market, often at discounted prices to offset looming structural repair assessments. At 1060 Brickell, a $21M building-wide assessment is pushing many owners to list their units—17 are currently on the market.
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Downturn in Older Stock
Redfin reports that Florida began the year with over 172,000 homes for sale, the most since 2012. In April, closed sales across Miami-Dade, Broward, and Palm Beach counties fell over 18% year-over-year, with median prices also dipping in Broward and Palm Beach.
Luxury Defies the Trend
Ultra-luxury developments tell a different story. Despite macroeconomic headwinds and rising interest rates, developers continue to secure enormous loans. Stephen Ross recently landed a $600M construction package for a waterfront condo in West Palm Beach. Similar projects by Savana and Related Group in places like Pompano Beach and Coral Gables are moving forward with strong presales.
New Development Strategies
Developers are targeting underbuilt neighborhoods such as North Beach and Coral Gables. Ella, a boutique condo project by Constellation Group, received $42M in financing after more than half its units went under contract. A second project, Cora, is aiming to tap Coral Gables’ limited condo supply.
Redevelopment in the Works
Mounting repair costs are also fueling buyouts. In Coconut Grove, Mast Capital is close to acquiring control of a waterfront condo for redevelopment, part of a long-term strategy to convert older buildings into luxury towers.
Economic Outlook
While broader economic uncertainty looms—driven by trade tensions and federal deficit concerns—South Florida remains resilient. “Within that framework, South Florida is on the path of least resistance,” said Ana Bozovic of Analytics.Miami. “It’s become a place that’s perceived as being friendly to capital and business.”
Why It Matters
South Florida’s condo market is undergoing a dramatic split. Aging buildings are being priced down or sold off for redevelopment, while new luxury projects remain hot commodities. This bifurcation is reshaping where capital flows—and who can afford to stay.
What’s Next
Expect continued pressure on older condo owners as more inspection deadlines hit. Meanwhile, developers and investors are likely to keep chasing luxury opportunities in high-demand, supply-constrained pockets of South Florida.
