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The median home price in Miami is $605,000, approximately 42% above the national average. For comparison, a typical home in Miami costs $605,000, compared to the national average of $435,051.
But does this mean housing prices will stabilize or decline in 2025? We don’t think so. Why? Let us explain with the latest data and forecasts.
Fact-checked and reviewed by our local expert
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Miami home prices set to climb another 6.5% in 2025, doubling the national growth rate
Seeing that Miami median home prices are expected to go up by 6.5% in 2025, right after a 6.9% rise in 2024, gives us a pretty good clue that prices won’t be dropping next year.
This local resurgence contrasts with the national forecast of a 3% increase in existing home sales, highlighting Miami's stronger recovery trajectory.
This kind of steady growth points to strong demand, likely fueled by people moving to the area and high interest from investors.
Usually, when prices keep climbing like this, it’s a sign of a healthy market, and it’s rare for that momentum to reverse quickly unless something big changes
So, with another increase projected for 2025, it suggests that the main factors—demand, limited supply, and economic stability—are keeping the market strong.
Sources: Miami Realtors, U.S.Bureau of Labor Statistics, U.S. Chamber of Commerce, Redfin, Statista
We created this infographic to show how property prices in Miami compare to other big cities in Florida. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
2) Single-family home prices are projected to rise by 9.7% in 2025 in South Florida
In 2025, single-family home prices in Southeast Florida are projected to jump by 9.7%.
This increase is largely because demand remains high, especially among wealthier buyers who are keeping competition strong, even though there aren’t many homes available.
The forecasted mortgage rate cuts will also make home buying a bit easier, which could bring more buyers into the market. In Southeast Florida, where lots of people are just on the edge of qualifying for a mortgage, even a small drop in rates can make a big difference.
Adding to this is the region’s economic growth. More people are moving in for job opportunities, lower taxes, and the area’s vibrant culture.
This steady flow of new residents boosts demand and keeps confidence high in the housing market.
Sources: Miami Realtors, Florida Trend
- Here are the strongest forecasts for Florida's real estate market in 2025
3) Single-family home prices in Miami have risen 161% over the past decade
Miami’s housing market has outpaced the rest of the country, with single-family home prices jumping 161% between September 2014 and September 2024, compared to just 0.2% growth across Florida.
This incredible growth shows just how unique and in-demand Miami’s real estate market really is.
Over the past decade, Miami’s status as a global hotspot for lifestyle, investment, and business has drawn affluent buyers from all over. With its vibrant culture, booming economy, and international appeal, it’s become a top choice for people looking for a permanent home, a vacation property, or a smart investment.
This steady flow of demand has fueled fierce competition, especially among high-income buyers, keeping prices on the rise.
Miami’s role as a gateway to Latin America and its growing reputation as a global city only strengthen its real estate market.
Sources: Miami Realtors, Florida Realtors, Redfin, Tampa Realtors
- Why is Miami one of the top places to invest in real estate in 2025?
4) Miami's luxury home market (properties over $1 million), has grown by 122% since before the pandemic and has limited supply
The rapid growth of Miami's luxury housing market, with properties over $1 million seeing a 122.2% increase compared to pre-pandemic levels, strongly suggests housing prices won’t drop in 2025.
This surge highlights strong demand from affluent buyers, who are less affected by economic shifts, boosting market confidence.
Luxury market strength stabilizes the broader real estate market, as high-end demand often trickles down to mid-range homes.
Paired with limited inventory, this ensures steady or rising prices across segments, as fewer available homes create competition among buyers, driving prices upward.
Sources: Miami Realtors, CiberCuba
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5) Miami real estate has experienced 152 consecutive months of price growth, with demand continuing to soar
Miami's real estate market has shown remarkable resilience, maintaining growth in single-family home and condominium sales despite economic fluctuations and inventory shortages.
This steady demand highlights the market's strength, even amid challenges like limited inventory.
The variety in housing options, with both single-family homes and condos showing growth, provides a stable foundation for the market.
In July 2024, Miami-Dade County single-family home median prices rose 6.1% year-over-year, from $631,670 to $670,000, marking the 152nd consecutive month of price appreciation.
Miami’s appeal as a place to live and invest continues to drive activity. The New York Post describes South Florida as the new epicenter of U.S. politics, business, and celebrity influence following President Trump’s re-election.
Sources: Miami Realtors, Redfin, New York Post
6) If no new homes were added to the market, it would take only 4.7 months to sell all the existing single-family homes at the current sales pace in Miami
Miami’s housing market is grappling with low inventory, with single-family home supply at just 4.7 months as of August 2024—well below historical averages.
This signals a seller’s market, where demand outpaces supply, keeping prices steady or pushing them higher.
Low inventory fuels buyer competition, driving prices up as sellers control the market.
Unlike a balanced market with a 6-month supply, Miami’s limited supply prevents a price drop.
Combined with strong demand driven by population growth, these tight conditions ensure Miami’s housing market remains competitive and prices stable.
Sources: Redfin, Joint Center for Housing Studies of Harvard University, National Association of Home Builders, HousingWire, The World Property Journal
7) Miami’s booming population (+3.9%) keeps driving housing demand and prices
Miami’s growing population, driven by an influx of higher-income residents, is significantly impacting the housing market.
In 2024, Miami's population reached an estimated 460,289, reflecting a 3.94% growth since the 2020 census.
Increased household incomes and greater purchasing power mean more buyers can afford homes, driving demand and competition higher.
Wealthier buyers create strong competition for limited inventory, especially in a market like Miami, where supply is already tight. This pushes prices up further, as sellers and developers adjust to the increased demand.
As high-income individuals continue moving to Miami, their purchasing power is expected to drive strong buyer demand, likely sustaining the conditions for stable or rising housing prices in the years to come.
Sources: World Population Review, Miami Realtors, Bureau of Economic and Business Research, United States Census Bureau, Neilsberg
Our team designed this infographic to show how competitive the real estate market in Miami is vs. other major cities in Florida. It shows the percentage of sales above the list price, a key indicator of market competition.
8) Wealthy migration has added $10 billion to Miami's income, driving home prices higher
Miami's housing market is thriving, thanks to a significant influx of high-income residents.
By 2024, this migration has added an estimated $10 billion to household incomes.
These newcomers, earning an average of $175,600, have increased purchasing power, intensifying competition in an already tight market.
With more people able to afford higher-priced homes, demand remains strong, pushing prices upward.
Even with economic fluctuations, the steady demand from affluent buyers helps keep the market stable.
Sources: Neilsberg, Statistical Atlas, City Data
9) Southeast Florida's 2.4% job growth, 10M jobs (+2.1%), and 513K openings (4.9%) in 2024 will drive housing demand and price increase
The Miami Association of Realtors projects a 2.4% employment growth in Southeast Florida for 2025, translating to approximately 80,000 new jobs. This job growth is anticipated to boost housing demand, contributing to sustained or rising home prices.
Additionally, the Florida Department of Economic Opportunity reported that the state's nonagricultural employment reached nearly 10 million jobs in September 2024, marking a 2.1% increase from the previous year.
This consistent job growth indicates a robust economy, which typically correlates with a strong housing market, as more employed individuals can afford home purchases, thereby supporting home prices.
Furthermore, the U.S. Bureau of Labor Statistics noted that Florida had 513,000 job openings in July 2024, with a job openings rate of 4.9%. This high number of job openings suggests a healthy labor market with ample employment opportunities, which can attract more residents to the area.
An influx of new residents often leads to increased housing demand, helping to maintain or elevate home prices.
Sources: Miami Realtors, Florida Jobs, Bureau of Labor Statistics
10) Home prices ready to climb as mortgage rates fall to 5% by 2025
With mortgage rates expected to drop to around 5% by the end of 2025, Miami’s housing market looks set to stay strong.
Lower rates mean buyers can afford more, bringing more people into the market and ramping up competition—especially in a city like Miami, where demand is already high and homes are in short supply.
As inflation levels out, the Federal Reserve is likely to adjust interest rates, making borrowing even cheaper.
This boosts affordability, attracts more buyers, and keeps demand strong.
Sources: Miami Realtors, Norada Real Estate Investments, Fortune , ABC News, U.S. News
This infographic we have made will show you how market values have changed during the last decade in Miami vs other major places in Florida. Here, the percentage increase or decrease in market value will help you see long-term trends.
11) The 2025-2029 Consolidated Plan and the 2025 Annual Action Plan might increase demand for housing driving up prices
Miami’s housing market is set for significant changes, thanks to plans focused on improving communities and boosting development.
The 2025-2029 Consolidated Plan and the 2025 Annual Action Plan aim to create more affordable housing and revitalize neighborhoods, which is already attracting more interest and driving up demand.
With Miami’s tight housing supply, this extra competition is bound to push prices even higher.
On top of that, these projects are expected to boost household incomes, giving more people the means to buy homes. It’s a recipe for strong demand and rising home prices in the coming years.
Sources: Miami Dade County, Official City of Miami Website , City of North Miami Housing & Social Services
12) Miami is expected to surpass 16 million annual visitors in 2025
Miami is set to host over 16 million visitors in 2025, and it’s more than just a tourism boost—it’s reshaping the housing market.
Many visitors fall for Miami’s lifestyle and invest in vacation homes, second properties, or rentals, increasing competition in an already tight housing market.
High-income tourists often drive this demand, pushing prices higher as inventory remains limited.
Tourism also boosts Miami’s economy, creating jobs in hospitality and retail, which attracts more workers—and more housing demand.
Vacation rentals add to the squeeze as investors snap up properties for short-term use, reducing inventory for regular buyers and further driving up prices in Miami’s competitive housing market.
Sources: Miami Realtors, U.S. News, Miami Downtown Development Authority
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So, will Miami's housing prices drop in 2025? Definitely not!
Miami's housing market is on a solid upward trajectory, with no signs of slowing down in 2025.
First off, the median home price in Miami is already $605,000, which is about 42% above the national average. This high price point is supported by strong demand and limited supply, both of which are expected to continue. In fact, Miami home prices are projected to rise by 6.5% in 2025, which is more than double the national growth rate of 3%.
Moreover, the luxury market, with properties over $1 million, has seen a 122% increase since before the pandemic, indicating robust demand from affluent buyers. This demand is further fueled by Miami's growing population, which has increased by 3.94% since 2020, and the influx of high-income residents adding $10 billion to the local economy.
Additionally, Miami's job market is thriving, with a projected 2.4% employment growth in 2025, translating to about 80,000 new jobs. This economic strength supports housing demand, as more people can afford to buy homes. The expected drop in mortgage rates to 5% by the end of 2025 will further boost affordability, attracting even more buyers.
Finally, Miami's appeal as a global city and a top tourist destination, expecting over 16 million visitors in 2025, continues to drive investment in vacation homes and rentals, adding to the demand. With all these factors in play, it's clear that Miami's housing prices are set to rise, not fall, in 2025.