The early 2000s Miami boom was fueled by liar loans, but this cycle was fueled by the cash buyer. Miami Beach condo transactions have declined sharply for 4 straight years. 91% of the decline is due to the disappearance of the cash buyer from the Miami real estate market. Meanwhile, debt is getting more expensive.

Miami Beach's older housing stock never recovered from the last market downturn. "Historic" 1950s and 1960s buildings are being passed up by the middle class for better values on the mainland.