As the Miami and South Florida market continues to heat up, buyers increasingly are seeking larger homes, an enduring trend since the beginning of the coronavirus pandemic last year.
“Covid has really impacted how families view their homes and how they use the space,” said David Martin, CEO of the Miami-based development firm Terra. “We’re seeing a lot of buyers from California and New York. They want their condos, and they want the amenities, and they want larger apartments.”
He described the new sweet spot for apartments as 2,200 to 3,500 square feet, up from 1,500 to 2,500 square feet. At Mr. C Residences in Coconut Grove, which Terra is developing, buyers are purchasing multiple units in the 20-story condo tower and combining them to up their square footage.
“The project launched sales in the first quarter of last year with 118 units, and 60% percent of the condos have now been sold,” Mr. Martin said. “Most of the new combined units are in the $2 million to $3 million range. I’ve never experienced a market this strong. Miami has always been a kind of live-and-play place. Now the city is becoming a center for business and commerce, rather than just tourism. We’re seeing multi-sector job growth.”
“For the $5 million-plus single-family market in Miami-Dade County sales in November, December and January were up over 400% year-over-year,” said Ron Shuffield, president of EWM Realty International. “A year ago, for the $5 million-plus market, we had seven years of supply, Now we’re down to nine months of supply for single-family homes and 36 months for luxury condos. That inventory is decreasing daily. For single-family homes over $1 million, Miami-Dade County recorded an average 189 sales per month in November, December and January, compared to 87 a year ago, a 117% increase. For condos over $1 million, there was an average of 115 sales per month during that same timeframe, compared to 65 a year ago, a 77% increase. There has been an “increase in demand and a shrinking of supply. We’ll start to see a steady growth in pricing.”