Luxury home values decline nationally, bucking trend in Florida

Between 2019 and 2023, Florida received a net income of $137 billion from other states, a trend that intensified as billionaires sought refuge from potential wealth taxes in California and Washington.

High-profile figures like Jeff Bezos, Ken Griffin, Mark Zuckerberg, Larry Page, and Sergey Brin have collectively invested hundreds of millions of dollars in South Florida real estate, attracted by the state’s lack of income tax, desirable lifestyle, and favorable business environment. This demand, coupled with a dwindling supply of million-dollar homes, is maintaining elevated prices despite the national downturn.

“Low rates lit the match, tight supply fed it, investors added heat, and wealthy newcomers poured gasoline on it,” explained Arman Javaherian, CEO of the homebuying platform Homa.

Nationally, the entry point for luxury housing—the price threshold for the top 10% of listings—decreased to $1,197,014 in October, representing a 2.3% drop from the previous year. The top 5% saw a 4.1% decline, while the top 1% plummeted 6.2% to approximately $5.1 million.

Conversely, Florida’s luxury market has seen gains. The Miami-Fort Lauderdale-West Palm Beach metro area experienced a 4.1% increase to about $2.3 million, while Naples saw a remarkable 9% rise to approximately $3.75 million—more than three times the national entry point.

Of the 43 metros analyzed by Realtor.com, only 12 registered a luxury price increase of at least 1%, with five of those located in Florida: Naples-Marco Island, North Port-Bradenton-Sarasota, Cape Coral-Fort Myers, Miami-Fort Lauderdale-West Palm Beach, and Tampa-St. Petersburg-Clearwater. Naples led with a 9% increase to $3.75 million, and listings there sold 27 days faster on average than a year prior.

According to Realtor.com senior economist Anthony Smith, the shrinking inventory of million-dollar homes in Florida’s thriving markets is contributing to price stability.

Citadel founder Ken Griffin relocated his hedge fund to Miami in 2022 and subsequently purchased a Coconut Grove estate for $106.9 million. Raffles is now constructing 35 luxury residences in the area, priced from $4.5 million.

Amazon founder Jeff Bezos has spent $237 million on three properties on Indian Creek and recently acquired an oceanfront estate in Golden Beach for $69.5 million. Meta CEO Mark Zuckerberg and his wife, Priscilla Chan, also purchased an Indian Creek estate for $170 million, while Google cofounder Larry Page invested approximately $173.4 million in two Coconut Grove properties.

“Someone buying a $20 million or $50 million home in Miami is coming for no state income tax, the lifestyle, and the business climate,” stated South Florida luxury real estate advisor Michael Martirena. A recent amendment limits yearly taxable-value increases for second homes to 5%.

While the national luxury market continues to adjust from pandemic-era gains, with cities like San Jose, New York-Newark-Jersey City, and San Francisco experiencing declines, Florida remains a stronghold for high-end real estate.