Following the COVID-19 pandemic, home prices surged due to low mortgage rates. The kind of luxury status home that was achievable for $1 million in 2016 is likely to cost you closer to $1.6 million today, and the starting price for a luxury home has shot up from $796,922 to $1.3 million since 2016. This shift in the housing market has heavily impacted Miami.
As of the beginning of October 2025, Miami had 10,074 properties listed for over $1 million, with the top 10% starting at just under $2.1 million, a 177% surge from 2015. Within the same time period, closing on single-family properties worth $1 million and more have increased from 7% to 24%. Several factors have led to Miami being one of the most severely affected metros.
More and more people who achieved success in the stock market have begun to transfer some of their assets into the housing market because the supply is lower. This gives them more confidence in a higher or equal return than the fluctuating stock market. This then makes the supply even lower, increasing the price for regular buyers. What was prime just 10 years ago is suddenly the bare minimum in luxury.
In Miami especially, there is a limit to the prime waterfront properties that are most desirable, which makes the few available cost more and more over time as their scarcity increases. Miami also has a very tax-friendly environment for higher incomes, and has appeal as a destination for wealth migration and global capital inflows. If you’re looking to buy anytime soon in Miami, now’s your chance before the prices get any higher!
