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Miami is now home to more multibillion-dollar listings than New York — a sign the luxury housing market’s center of gravity continues to drift south.
According to Realtor.com’s December luxury home report, Miami surpassed New York with 10,591 homes listed for $1 million or more, compared to New York’s 10,176 million dollar listings.
New York has held the top spot for nearly a decade, and in late December, Miami solidified its lead as the long-term destination for wealth and housing demand.
“This is not a short-term increase, it is an evolving market. The drivers supporting Miami’s growth are long-term: demographic trends in favor of the Sun Belt, increasing international capital flows, and the deep presence of financial infrastructure, technology and global business,” Douglas Elliman Vice Chairman Dottie Herman told Fox News Digital.
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“That being said, there is no limit to growth,” he said. “Insurance costs, climate considerations, and the risk of overdevelopment in some small markets will require disciplined planning and thoughtful execution.”
The Miami metro area has surpassed New York for the largest number of listings of over a million homes. (Getty Images)
Miami luxury buyers are likely to be cash buyers, international buyers, retirees or second home buyers. The report says these demographics are highly insensitive to mortgage rates, school calendars and seasonal trends — which keep inventory levels high year-round.
The season seems to favor the Magic City, as inventory remains stable and allows developers to quickly rebuild supply on a high basis. In contrast, New York luxury listings follow a traditional cycle, with a spring surge and a winter slump.
“Miami surpassing New York on the million dollar list shows the growth of Miami, compared to the weakness of New York,” Herman said.
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“Over the past decade, Miami has expanded its definition of luxury. The market offers waterfront accommodations, new construction, resort-level amenities and a lifestyle component directly embedded in the product. In contrast, New York’s luxury market is limited and static in nature, constrained by land, design and supply,” he explained.
The New York market is not collapsing, but rather losing ground in a mature area, as the report says. The Big Apple saw its housing market contract in the wake of the pandemic, driven by high new listings, a decline in out-of-towners and long-term homeownership.
“Florida’s lack of federal income tax compared to the combined tax burden of New York and the city shows a significant financial disparity for high earners,” Herman said. “For many consumers, those savings translate directly into improved purchasing power or long-term savings.”
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Notably, 26.3% of Miami’s luxury demand comes from the New York metro area – more than the next eight metros combined.
“New Yorkers have played an important role as market innovators. A significant share of Miami’s luxury demand comes from the New York metro area,” Herman said. “This is not a broad exodus of New York’s population. It’s a targeted exodus of high-income professionals working in fields like finance, technology and real estate, who don’t have both the means and the flexibility to choose where they live.”
Looking from a multi-national lens, luxury prices are stabilizing, with the top end reaching $1.19 million, down slightly from last year. Luxury homes are taking longer to sell, with an average time of 88 days, reflecting cautious buyers and the cooling of the season.
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Overall, the price gaps are wide – luxury homes vary between two and five times the price of the median home, depending on the specific market.
“The most accurate outline is this,” Herman said. “Miami is not replacing New York. It joins New York as the capital of American luxury real estate. New York remains a cultural, financial and institutional indicator – Miami has emerged as a center of life, a dynamic market and a global magnet for mobile wealth.”
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