T
he South Florida real estate market continues to defy the national trend, with prices for homes and land remaining high despite a slowdown in other major US metros. The "flight to Florida" is expected to persist, driven by billionaires and wealthy individuals seeking a safe haven from economic uncertainty. At The Real Deal's South Florida Real Estate Forum, experts predicted that Miami will remain an outlier due to its unique combination of affordability, lifestyle, and business-friendly environment.

    The forum, which drew over 6,000 attendees, featured keynote speakers including billionaire WeWork founder Adam Neumann, developer David Martin, and Douglas Elliman's new CEO Michael Liebowitz. Neumann discussed his new venture, Flow, a rental apartment company that is outperforming the competition in terms of net operating income.

    Multifamily developers spoke candidly about the challenges facing the industry, including rent growth flatlining due to thousands of newly completed units and elevated interest rates making construction financing more expensive. Despite these challenges, Miami Worldcenter master developer Nitin Motwani predicts that apartment rents will continue to boom in South Florida.

    Developers also discussed the boom in Brickell, Greater Downtown Miami, and downtown Fort Lauderdale, as well as the issues facing developers today, including finding subcontractors that can deliver high-quality buildings and rising costs of insurance and land. Property Markets Group's Kevin Maloney expressed concern about President-elect Donald Trump's proposed tariffs, which he believes will be passed down to developers.

    In the single-family market, developer Todd Michael Glaser said he's spending more time renovating existing homes than building new ones due to high construction costs. Parking is also a major expense in apartment buildings, with costs ranging from $25,000 to $35,000 per spot.

    The luxury market is experiencing a slowdown in sales, but deals are still setting records, and billionaires are still moving to South Florida. Residential agents agree that buyers want new homes close to great schools, but inventory remains a major issue. Branded condo projects have boomed, with many developments concentrated in Miami and Miami Beach.

    Office brokers were optimistic about the market, citing 3 million square feet of office space in development pipeline in the tri-county region. However, some experts cautioned that the market is over-exuberant and may be due for a correction.