Luxury home transactions continue to gain momentum across South Florida, with $10 million-plus sales approaching record levels despite higher mortgage rates and declining overall sales.
South Florida’s luxury housing market continued to outperform the broader residential sector through September 2026, highlighting a widening divide between affluent cash buyers and households facing mounting affordability pressures.
According to figures published by MIAMI REALTORS® and RWorld in the September 2026 South Florida Housing Market Report, sales of homes priced at $1 million or more increased 20.2% year-over-year during the first nine months of 2026.
The region’s ultra-luxury segment recorded even stronger growth. Closed sales of properties priced at $10 million or more climbed 40% to 407 transactions, putting the market within reach of its previous annual benchmark of 436 sales in 2021.
The figures suggest that high-end residential demand remains resilient even as rising borrowing costs weigh on the broader market.
Cash Buyers Help Sustain Luxury Market Activity
One of the defining characteristics of South Florida’s luxury market is its unusually high concentration of cash transactions.
According to the report, 59% of million-dollar home sales during the first nine months of 2026 were completed without mortgage financing, compared with 42% of residential transactions across all price categories.
In the $10 million-plus segment, cash purchases accounted for 86% of sales.
This substantial reliance on cash financing helps explain why the region’s highest-priced properties have remained comparatively insulated from mortgage rate increases.
Luxury transactions also represent a significant portion of residential activity in several South Florida counties.
Palm Beach County led the region, with million-dollar properties accounting for 29% of sales, followed by Miami-Dade County at 28%, Broward County at 21%, and Martin County at 20%. St. Lucie County recorded a considerably smaller share of 2%.
Overall Home Sales Decline for Second Consecutive Month
While luxury transactions continued to expand, South Florida’s broader housing market showed signs of weakening in September.
Combined closed sales of single-family homes and condominiums/townhomes declined 5% compared with September 2025, marking the second consecutive month of annual decreases.
Single-family home sales fell 5.2% across the region, including declines of 4.7% in Miami-Dade, 7.1% in Broward, and 2.7% in Palm Beach County.
Condominium and townhome transactions decreased 5.1%, with Broward County experiencing a 12.5% decline. Miami-Dade was an exception, recording a modest 0.6% increase.
Despite September’s slowdown, regional residential sales remained 6% higher year-to-date, while condominium and townhome transactions increased 5.1% over the same nine-month period.
Several municipalities also demonstrated stronger activity. Miami Beach recorded a 47% annual increase in single-family transactions, while Sunny Isles Beach and Aventura posted condominium/townhome sales gains of 42% and 32%, respectively.
Shrinking Inventory Intensifies Affordability Challenges
South Florida’s housing supply continued to contract even as overall sales softened.
Active inventory declined 13% year-over-year, extending a sequence of eight consecutive months of decreases, according to the report.
The shortage was particularly pronounced among lower-priced single-family properties.
At the end of September, homes listed below $400,000 represented just 13% of the region’s single-family inventory, while properties priced at $1 million or more accounted for 31%.
In Miami-Dade County, only 123 single-family homes were actively listed below $400,000, representing approximately 3% of available single-family inventory.
The imbalance underscores the affordability challenges confronting local households, particularly buyers dependent on mortgage financing.
Wealth Migration and Employment Trends Shape Demand
Beyond existing local demand, South Florida continues to attract higher-income workers relocating from other states.
The association reported that out-of-state job movers arriving in South Florida earned an average of $140,000, compared with $62,000 among workers relocating from elsewhere within Florida.
Employment opportunities in healthcare, professional and technical services, and finance and insurance were identified as important contributors to regional housing demand.
The report also identified relatively affordable communities, including Port St. Lucie, Fort Pierce, Tamarac, Margate, and Boynton Beach, as potential destinations for price-sensitive buyers.
Meanwhile, established luxury markets such as Palm Beach, Boca Raton, Miami Beach, Coral Gables, and Pinecrest remain positioned to attract affluent buyers seeking lifestyle amenities and high-end residential properties.
The September figures reveal an increasingly segmented housing market: luxury sales continue to expand, supported by cash-rich purchasers, while rising financing costs and limited affordable inventory constrain activity across the broader residential sector.
Sources & References
Primary source: MIAMI REALTORS® + RWorld, South Florida Housing Market Report — September 2026, report made available in October 2026.