Florida’s real estate market continues its dynamic growth, marked by significant investments in luxury properties and robust expansion in the multifamily sector. High-profile projects like the St. Regis Resort and new Kolter Multifamily developments are reshaping the landscape, even as discussions around the long-term financial burdens of developer bonds for homeowners gain prominence.
Luxury Market Flourishes
- Florida’s luxury real estate sector is experiencing a boom, attracting high-net-worth individuals and significant investment.
The Sunshine State’s luxury real estate market is witnessing unprecedented activity. Fort Lauderdale is transforming into a high-end destination, exemplified by the $2 billion St. Regis Resort & Residences at Bahia Mar. This ambitious project will feature five-star hotel services and luxury condo towers, with units ranging from $3 million to $25 million. Developer Jimmy Tate and The Related Group anticipate breaking ground on the first phase in summer 2026, aiming for 45-50% pre-sales by early 2026. This development, alongside other major projects like the Las Olas Marina expansion, signifies Fort Lauderdale’s shift from a spring break hub to a luxury hotspot.
Further illustrating this trend, former NHL star Ed Jovanovski has listed a Boca Raton waterfront estate he developed for $14.99 million. This modern, British West Indies-inspired home, spanning 7,677 square feet, highlights the continued demand for high-value properties in prime Florida locations.
Multifamily Sector Sees Robust Growth
- New apartment complexes are rapidly emerging across Florida, driven by strong demand and strategic investments.
The multifamily housing sector is also expanding rapidly to meet Florida’s growing population. Kolter Multifamily recently broke ground on Alton Palmetto, a 276-unit garden-style community in Palmetto, Florida, part of the Sarasota-Bradenton area. This marks Kolter’s third project in the region, with Alton LakeHouse and Alton Osprey nearing completion. These developments aim to provide highly livable products in areas with strong migration, job access, and long-term growth fundamentals.
In another significant move, real estate investor Grant Cardone has reportedly bid $230 million for the bankrupt Via Mizner apartments in Boca Raton, signaling continued interest in acquiring and developing large-scale residential properties.
Understanding Developer Bonds and Homeowner Costs
- Homebuyers in Florida’s special districts face significant long-term financial obligations beyond traditional property taxes.
While Florida’s real estate market thrives, a critical aspect for homebuyers is the prevalence of developer bonds and independent special districts. These districts allow developers to fund infrastructure like roads, sewers, and clubhouses, with the costs passed on to homeowners through annual assessments that can last decades. A Suncoast Searchlight investigation revealed that in Sarasota, Manatee, and DeSoto counties, over 85 such districts exist, with many homeowners paying more in these annual assessments than in property taxes for local government services.
For example, some homeowners in Harrison Ranch paid nearly five times more in district fees than in county operating taxes. These fees, which can range from $500 to over $6,300 annually, often come on top of HOA dues. Experts warn that many buyers are unaware of these long-term financial obligations until late in the purchasing process, emphasizing the need for greater transparency from real estate professionals. As communities age, these districts can also face soaring maintenance costs, leading to additional assessments for residents.
Sources
- Grant Cardone bids $230 million for bankrupt Via Mizner apartments in Boca Raton, The Business Journals.
- Hidden costs of Florida homes: Developer bonds & fees, Miami Herald.
- $2 billion Florida luxury condo project reeling in buyers, developer says, Tampa Bay Times.
- Kolter Multifamily Begins Newest Florida Project, Multi-Housing News.
- Ed Jovanovski lists a Florida home he developed for $14.99M, New York Post.