Posted by Larry Mastropieri on Saturday, November 1st, 2025 11:12am.
Luxury real estate is shifting in unexpected ways. South Florida luxury real estate, once the top choice for the ultra-wealthy, is now seeing a slowdown while New York City reclaims attention from high-end buyers. The latest numbers show NYC leading the world in $10 million-plus home sales, while key Florida markets like Miami and Palm Beach cool off.
According to Knight Frank’s Global Super-Prime Intelligence Q2 2025 report, New York recorded 120 sales above $10 million, totaling $2.9 billion in deal volume. That’s nearly double the number from a year ago and the strongest quarterly rebound since the pandemic. Trophy condos overlooking Central Park and newly renovated brownstones in Tribeca are attracting global buyers once again.
Even fears of higher taxes following NYC’s mayoral election didn’t deter investors. New York City luxury real estate is once again viewed as a safe and prestigious option, offering predictable costs and long-term value. Manhattan’s predictable ownership costs, transparency, and unmatched prestige have returned it to the top of the global luxury market, even outpacing Dubai in total deal volume.
Meanwhile, the South Florida luxury real estate market has noticeably cooled at the $10 million-plus level, with Miami recording just 25 ultra-luxury sales in Q2 2025, a sharp 52% decline from the 52 sales during the same period last year. Palm Beach also saw a slowdown, posting 32 sales, an 18% year-over-year drop, reflecting a broader pause in high-end buyer activity across the region.
Florida’s skyrocketing insurance premiums are one of the biggest factors affecting high-end real estate. Homeowners are now facing annual premiums of $11,000 or more, especially on waterfront properties. Some luxury buyers are absorbing an extra $500 per month just for coverage, according to a recent NAR report.
Worse, many major insurers have reduced or entirely withdrawn from coastal markets like Miami-Dade and Palm Beach County, making policies harder to obtain.
After the tragic Surfside condo collapse, new Florida safety laws have increased HOA fees and building maintenance costs for luxury condos. The result? Buyers are more cautious about entering high-rise ownership.
To add pressure, the pause in the National Flood Insurance Program (NFIP) during the federal shutdown in September 2025 halted thousands of transactions dependent on flood coverage. FEMA.gov offers updates, but the uncertainty has spooked many cash buyers.
Despite the drop in sales, prices in South Florida luxury real estate remain strong. According to Inman, luxury single-family homes now average nearly $3 million, marking a 10% year-over-year increase, with Palm Beach County leading the state in price growth. This stability is driven by sellers, especially developers, who are holding firm on pricing due to long-term investments and financial flexibility. Many are unwilling to cut prices, knowing that one reduction could impact the value of multiple future listings in their pipeline.
Luxury buyers are favoring New York City for its predictable costs, global prestige, and political stability.
No. While sales volume has slowed, prices are holding steady. In some areas like Palm Beach County, luxury home prices have increased by nearly 10% year-over-year. Sellers are resisting price cuts and have little urgency to sell quickly.
Yes. The temporary suspension of the National Flood Insurance Program (NFIP) during the government shutdown halted policy renewals and new coverage, creating delays for buyers. Coastal markets like Miami-Dade and Palm Beach are particularly affected.
While New York is currently gaining momentum, South Florida luxury real estate continues to offer strong long-term value, incredible lifestyle benefits, and solid pricing. If you're considering buying or selling in South Florida, now is the time to connect with seasoned professionals who know the market inside and out. Contact Mastropieri Group Realtors® at (561) 544-7000 for expert advice, data-backed strategy, and trusted results in South Florida luxury real estate. No listings were found matching your search criteria.