South Florida Real Estate Market Update: Q1 2025 Trends & Insights from ISG World

Published: May 2025 | Source: Craig Studnicky, ISG World / RelatedISG

Introduction: Setting the Record Straight

With headlines swirling about a supposed downturn in the Florida housing market, it’s time to separate fact from fiction. According to Craig Studnicky, CEO of ISG World and RelatedISG, much of the mainstream narrative about South Florida real estate is misleading.

In his latest Q1 2025 Miami Market Update, Studnicky outlines key trends that paint a very different picture: demand is surging, supply is strained, and the rebound is already underway.

1. A Tale of Two Markets: Old vs. New Inventory

South Florida is currently divided between two very different real estate markets:

• Older condos (30+ years) are burdened with structural concerns, special assessments, and tighter lending restrictions.
  
  
• Newer condos (less than 30 years old) are in short supply and high demand.
  
  

Out of the 23,000 condos listed on the MLS, more than 19,000 are over 30 years old. Meanwhile, there are only about 3,300 newer condos available across Miami-Dade, Broward, and Palm Beach counties. Younger buyers and families are gravitating toward modern buildings to avoid future renovation costs and financing headaches.

2. Rising Prices in Young Inventory and a Surge in Luxury Sales

Despite concerns over rising interest rates, prices across South Florida continue to climb, especially in the newer condos and single-family home markets.

• Newer condos appreciated by 8% in 2024.
  
  
• Single-family home prices are rising across all tiers:
  
  
• A-class (waterfront, contemporary): $18M → $21M
  
  
• B-class (inland, newer builds): $6.9M → $8.5M
  
  
• C-class (older homes, despite doubling inventory): $850K → $1M
  
  

Luxury is also booming: sales of homes priced at $10 million or more doubled in Q1 2025 compared to Q1 2021. Wealthy buyers are driving demand and helping push home values higher.

3. The Supply Gap: Demand Remains, Inventory Doesn’t

There’s no shortage of interest in buying — the real issue is inventory.

Just 676 newer condos priced between $500K–$2M are currently available across the tri-county area, even though that price range made up 85% of all condo sales in 2024.

With most new construction not expected until 2028 or later, this gap is driving up prices and fueling competition in the resale market.

4. New Construction: Tall Towers, Long Timelines

There are currently 91 traditional condo projects in the pipeline, totaling around 13,000 units. However, only about 7,000 units are under active construction.

Many of these developments — like the 100-story Waldorf Astoria in Miami — are skyscrapers that won’t deliver until the late 2020s or early 2030s. For now, buyers are largely dependent on MLS resale listings if they want to move in anytime soon.

5. Condo Conversions Are Gaining Momentum

Another trend to watch: the conversion of rental apartments into condominiums.

• Since 2020, 60,000 multifamily units have been built in South Florida.
  
  
• As rental prices softened (down 8% in 2024), developers are starting to convert these into condos, especially in the high-demand $500K–$2M price range.
  
  

These conversions could ease the pressure on inventory — but not immediately.

6. Florida’s Growth Isn’t Slowing Down

Population growth continues to drive demand across South Florida.

• Florida now welcomes over 1,300 new residents per day, up from 1,000 historically.
  
  
• It’s the second fastest-growing state in the third fastest-growing country in the world.
  
  

Many of these newcomers are relocating from the Northeast, Midwest, California, and Latin America — further fueling the need for move-in-ready, newer housing.

7. Lending & Regulation Changes Are Reshaping the Market

Financing is getting tougher for aging buildings:

• Fannie Mae and Freddie Mac have blacklisted over 690 condo buildings, making mortgages nearly impossible for those properties.
  
  
• As a result, both buyers and lenders are focusing almost entirely on newer, structurally sound buildings.
  
  

This shift is accelerating demand for modern homes and condos — and widening the gap between old and new.

8. Expert Confidence: The Rebound Has Already Begun

George Perez, founder of The Related Group, recently said:

“Every time the market dips, the next peak has always been higher than the last.”

Craig Studnicky agrees. He believes Q1 2025 marks the beginning of South Florida’s next real estate cycle, with wealth-driven activity already picking up. The smart money is buying now — ahead of the curve.

Conclusion: South Florida’s Real Estate Market Is Rebounding

Despite attention-grabbing headlines and market noise, the real picture of South Florida’s housing market in 2025 is clear:

✅ Demand is strong (especially in newer condos and luxury properties)
✅ Inventory is limited
✅ Prices are rising — especially in the newer home segment

For Southeast Florida homeowners, sellers, and investors, the message is simple:

The rebound is real—and the best time to act is before everyone else catches on.

✅ This summary is based on the Q1 2025 Miami Market Report presented by Craig Studnicky, CEO of ISG World and RelatedISG. Used with proper credit and public acknowledgment.

Need help navigating the South Florida market? Let’s talk. Whether you're buying, selling, or investing, understanding the right segment makes all the difference.

🧠 Frequently Asked Questions

Q: Is the South Florida housing market slowing down in 2025?
A: No. While national headlines suggest a slowdown, South Florida continues to see strong buyer demand, particularly for newer condos and luxury properties.

Q: Why are older condos harder to sell or finance?
A: Many older condos face structural issues and have been blacklisted by lenders like Fannie Mae and Freddie Mac. This limits financing options and reduces buyer interest.

Q: When will new construction condos be available in Miami?
A: Most large-scale condo developments won’t deliver until 2028–2031, meaning short-term inventory will remain tight.

Q: Are luxury homes still selling in Miami?
A: Yes. Sales of homes priced $10M+ doubled in Q1 2025 compared to Q1 2021, showing strong interest in South Florida’s high-end real estate market.