Discover South Florida's real estate outlook for 2025-2026. Learn about sales trends, price forecasts, and mortgage rate projections.

The South Florida housing market outlook for 2025-2026 points to moderate growth in both home sales and prices. According to the March 2025 update by MIAMI Realtors®, mortgage rates could drop to 6.3% by year-end, boosting demand—particularly among high-income buyers.

This forecast comes amid an uncertain global economic landscape, with inflation risks, slower trade activity, and ongoing tariff tensions. In this post, we dive into the key insights and what they mean for real estate in areas like Miami Beach, Coral Gables, and Jupiter.

Falling Mortgage Rates: A Key Market Driver

With the 30-year fixed mortgage rate expected to average 6.4% in 2025 and potentially fall to 6.3% by December, the market could see renewed activity. Lower rates stem from a dip in 10-year Treasury yields due to investor concerns about inflation and trade tensions.

Sales Growth Driven by High-Income Buyers

MIAMI Realtors® forecasts a 1% increase in single-family home sales for 2025, rebounding slightly from a 1.8% decline in 2024. However, this growth will be concentrated among high-income buyers, as affordable inventory under $400,000 remains extremely limited. In Miami-Dade, these homes represent just 2% of the current market.

Affordability challenges persist. A household now needs an annual income of $168,000 to purchase a median-priced home in South Florida, while a dual-income household averages only $115,000 in earnings.

Steady Prices and Moderate Appreciation

Home prices are expected to increase by 4% in 2025, supported by a healthy 6-month supply of inventory and a very low share of distressed sales. More affordable areas such as Homestead, Miami Gardens, and Port St. Lucie may experience stronger appreciation due to lower price points and limited supply.

What This Means for Buyers and Investors

If you're considering buying or investing in South Florida real estate, this might be the perfect moment to explore opportunities—especially in luxury segments or up-and-coming affordable markets. Analysts expect the environment to remain favorable for strategic buyers.

Need personalized advice? Talk to a real estate expert.

Frequently Asked Questions (FAQs)

How much will home prices rise in 2025?
According to MIAMI Realtors®, single-family home prices will increase by about 4% across South Florida.

Which areas are likely to see the fastest appreciation?
Homestead, Port St. Lucie, Miami Gardens, and Riviera Beach are expected to appreciate faster due to affordability and low supply.

Is 2025 a good time to buy a home in South Florida?
Yes, especially for buyers seeking long-term investments or wanting to leverage forecasted mortgage rate declines.

How will inflation affect the housing market?
Inflation could impact affordability, but high-income buyers are expected to remain active and support upper-tier markets.

Will there be more affordable homes in 2025?
Inventory under $400,000 remains scarce, particularly in Miami-Dade County where these homes make up just 2% of listings.

Conclusion

The South Florida housing market in 2025 is projected to remain stable with moderate growth. Whether you're a buyer, seller, or investor, understanding the latest trends is key to making the most of the opportunities ahead.

Ready to find your next property? Browse available listings or connect with a NegocioMiami advisor today.