Thank you to the Wall Street Journal for using my data in this great piece:

Million-Dollar Homes Skyrocket in Miami, as Starter Properties Go Extinct

Full article here on WSJ.com > 

Excerpts:

Between 2019 and 2024, a five-year period that saw hedge-fund manager Ken Griffin hand Miami its first $100 million home purchase—followed by a slew of other megadeals—the number of annual single-family home sales in Miami-Dade County below $500,000 dropped 79.6%, according to research firm Analytics Miami.

Where did all those entry-level homes go? One price tier up, dragged there by the upward trajectory of single-family home prices area-wide. For single-family homes between $500,000 and $1 million, inventory rose 43% and sales rose 140% between December 2019 and December 2024. For the month of December 2024, the median sale price for a single-family home was $675,000—up 11% year-over-year and up 78% compared with December 2019, Analytics Miami found.

Meanwhile, the annual number of home sales above $1 million rose 147% compared with 2019.

Ana Bozovic, a Miami real-estate agent and founder of Analytics Miami, said lower-priced inventory is being squeezed out of the market by sellers unwilling or unable to move, and by buyers who continue to bid up prices. “The floor of this market keeps rising,” she said. At the high end, there is a limited pool of single-family properties and high demand, a combination which has led to an explosive price rise.  …. 

In recent months, consumer brands entrepreneur Anand Khubani paid $100 million for three contiguous properties on Miami Beach’s La Gorce Island. He later purchased a $40 million spec home on North Bay Road, about 1.5 miles from where soccer star David Beckham and his wife, fashion designer Victoria Beckham, spent $72.25 million for a newly built mansion—a deal that local agents said started a market frenzy.

“These price points didn’t exist pre-Covid,” Bozovic said. “The sheer appetite—it’s a completely different reality.”

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A new market

Since 2019, wealthy buyers have reshaped Miami’s luxury market. According to Bozovic, the number of single-family home sales above $10 million was up 248.4% in 2024 compared with that of 2019.

In fact, in Miami-Dade County, the luxury threshold for single-family homes—meaning the top 5% of the market—reached $3.3 million in 2024, up from $1.4 million in 2019, according to the Miami Association of Realtors.

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‘Going extinct’

As luxury home prices skyrocket, Miami’s inventory of lower-priced houses is rapidly shrinking. Not only are longtime owners holding on to their homes, but housing economists and agents also said a chunk of the sub-$500,000 market is disappearing as values shoot up.

In December 2019, there were 3,518 single-family home listings under $500,000, a number that dropped to 641 in December 2024, Bozovic said. “The market below $500,000 is going extinct. It’s kind of shocking,” she said. There is little new product being added to the market at that price point, either, because of high land prices and construction costs, she said.

CHARTS USED IN THE ARTICLE