By Gay Cororaton, MIAMI REALTORS Chief Economist
Key takeaways:
- Miami Beach is the second largest vacation home market in the United States and is the largest vacation home market in Southeast Florida.
- In 2024, the dollar sales volume in the 25 Southeast Florida vacation home markets rose 7% as the median sale price across the Southeast Florida’s 25 vacation home markets rose 7% even as sales fell 13%.
- Cash buyers accounted for 75% of sales in the Southeast Florida vacation home markets.
Read the Southeast Florida Vacation Home Market in 2024 Report HERE.
According the Miami Association of Realtors® analysis of the US Census Bureau data on seasonal, recreational, or occasional home (“vacation homes”) s, Miami Beach is the second largest or most popular vacation home market in the United States, with nearly 14,000 vacation homes that make up 22% of its housing stock (Ocean City, Maryland was the most popular vacation home market, with nearly 25,000 vacation homes that made up 82% of its housing stock).
MIAMI Realtors® defines a vacation home market as a place where at least 20% of the housing stock is for seasonal, recreational, or occasional use (“vacation” homes).
Miami Beach was also the most popular or largest vacation home market Southeast Florida, followed by Aventura and Sunny Isles Beach. Hallandale Beach and Lauderdale-by-the-Sea are the most popular in Broward County. The town of Palm Beach is the most popular vacation home market in Palm Beach County. Jupiter Island is the popular vacation home market in Martin County. Hutchinson Island South is the popular vacation home market in St. Lucie County.
Dollar Sales Volume in Southeast Florida’s Vacation Home Markets Rose 6% in 2024
In 2024, the dollar volume of all homes sold in the 25 Southeast Florida vacation markets rose 6% to nearly $10 billion. The dollar sales volume increased despite fewer transactions as buyers purchased more expensive properties compared to one year ago. The median sales price rose 7% in the 25 vacation markets while sales fell 13%.
The median sales price in the 25 vacation home markets up 7% at $852,500 in 2024 Q4. In comparison, the median home sales price in other areas rose 6% to $475,000. The median sales prices rose in 15 vacation markets, including Miami Beach (+19%), Aventura (+9%), and Sunny Isles Beach (+72$). Median sales prices can be volatile in ultra luxury markets.
Cash Buyers Accounted for 75% of Sales in Southeast Florida’s Vacation Home Markets
Cash buyers have increasingly accounted for a larger share of total sales in the 25 vacation home markets, rising to 75% in 2024 from 65% in 2019 and 73% in 2023. In the other areas, cash buyers accounted for a lower share, at 33% of sales (but also up from 30% in 2019).
In Miami Beach, cash sales were 65% of total sales in 2024, up from 61% in 2019. In uber-luxury markets like Jupiter Island, Gulf Stream, Briny Breezes, Fisher Island, and Manalapan, all-cash sales accounted for at least 9 out of 10 sales.
The rising share of cash buyers in Southeast Florida’s vacation markets indicates a sustained interest among wealthy buyers in the Southeast Florida housing market. Southeast Florida’s strong economic fundamentals which portend sustained price appreciation, lower property taxes compared to states like New York, New Jersey, and Illinois, and the availability of luxurious coastal vacation homes are factors attracting wealthy buyers from out-of-state and internationally. In Southeast Florida, 76% of foreign buyers purchased homes to use for a vacation or to rent out and 66% of foreign buyers made an all-cash purchase.
2025 Vacation Market Outlook: Wealthy Buyers Will Continue to Push Prices Upward
What’s the vacation homes market outlook shaping up in 2025? Data as of January 2025 indicates that the vacation market remains resilient as wealthy cash buyers continue to be the bulwark of Southeast Florida’s housing market amid economic and regulatory headwinds.
Inventory continued to build up to 16 months’ supply, but sales prices continue to increase, with the median sales price up 16% to $850,000 in January 2025. With higher prices, dollar sales volume rose 45% even as sales fell 10%. In January, the median cash sales share in the vacation home markets rose to 95%.
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