South Florida’s housing market is showing renewed strength in 2026 as declining inventory, rising sales and steady demand put more pressure on available properties. A mid-year market update from Berkshire Hathaway HomeServices EWM Realty points to improving activity across Miami-Dade and Broward, even as mortgage rates remain elevated.
Key takeaways
The market’s main developments include:
- Single-family inventory fell 24% in Miami-Dade and 25% in Broward compared with the second quarter of 2025.
- Sales increased 6% in Miami-Dade and 10% in Broward.
- Median single-family prices reached $690,000 in Miami-Dade and $640,000 in Broward.
- Luxury homes priced above $5 million recorded especially strong sales growth.
- Mortgage rates are expected to remain near 6% to 6.5% for the foreseeable future.
Inventory declines are supporting prices
Ron Shuffield, president and CEO of Berkshire Hathaway HomeServices EWM Realty, said the region is beginning to reverse a long period of gradually weakening sales. He attributed the improvement to stronger buyer activity, while cautioning that additional inventory is needed to sustain momentum.
The relationship between supply and prices remains clear. Miami-Dade’s single-family inventory declined 24% year over year, while months of supply dropped 28%. Broward recorded similar trends, with inventory down 25% and supply down 32%. Median single-family prices increased 2% in both counties.
Condominium markets also tightened, although prices were mixed. Miami-Dade condo inventory fell 14%, while the median price slipped 1% to $433,000. Broward condo inventory declined 13%, with the median price down 3% to $265,000.
Luxury segment leads the rebound
The strongest growth has been concentrated in properties priced above $5 million. In the second quarter, 488 single-family homes in that category were available, compared with 297 during the same period in 2020. Monthly sales rose from five to 43 over the same comparison, reflecting a dramatic increase in activity.
Luxury condo sales also improved, reaching an average of 20 per month compared with four in 2020. By contrast, inventory for properties below $5 million is down 13%, creating a tighter environment for buyers in more attainable price ranges.
Of approximately 4,500 homes currently listed across South Florida, about 10% are priced above $5 million and another 10% are below $500,000. The remaining 80% fall between those thresholds.
Interest rates may keep buyers moving
Shuffield said rates in the 6% to 6.5% range may represent a stable level for the economy, noting that borrowing costs were considerably higher during previous decades. With no immediate drop expected, some buyers may decide that waiting could mean facing even higher prices or fewer choices later.
Rental trends were uneven. Miami-Dade single-family rental inventory fell 19%, while rentals increased 12% and the median rent held at $3,800. Condo rental inventory dropped 12%, but rentals declined 2% and the median price fell 4% to $2,700.
Key Biscayne remains a strong pocket
Key Biscayne posted generally favorable results in markets above and below $2 million. For higher-priced condos, sales jumped 217% to 19 transactions, inventory fell 16% and the median price rose 19% to $2.91 million.
Single-family inventory above $2 million declined 12%, while the median price increased 4% to $3.7 million. In the under-$2 million condo segment, inventory dropped 23% and the median price rose 6% to $1.14 million.
Population growth adds long-term demand
South Florida continues to attract affluent households and corporations that have relocated to the region since the pandemic. Many newcomers are establishing primary residences rather than purchasing second homes, increasing demand for schools, health care and neighborhood services.
Local appeal varies by lifestyle, with areas such as Coconut Grove benefiting from interest among buyers seeking walkable urban amenities or proximity to the water. If inventory remains constrained, that sustained demand could continue supporting prices through the remainder of 2026.