Inside the death of the starter home in Florida

Say goodbye to the days of snagging a cheap starter home in South Florida.That ship has sailed, and it’s been replaced by a yacht for millionaires.Back in the day — particularly five years ago in the early days of COVID-19 — $1.1 million got buyers a fancy house and a spot among the top dogs.

Now, they need $2.6 million just to keep up, and even that won’t buy much.The little guy’s dream of owning a home down there is pretty much kaput.The numbers don’t lie — and they’re brutal.In Palm Beach County, 24% of houses sold last year went for $1 million or more, according a report from Miller Samuel and Douglas Elliman.

Miami-Dade is close behind at 23%.Things are speeding up, too.Long-affluent Palm Beach had a 56% jump in million-dollar sales this past December, the biggest spike since May 2021.

The Miami Association of Realtors says high-end homes are taking over the market, and there’s no stopping it.“South Florida still doesn’t have enough inventory to meet demand,” says Eddie Blanco, the 2025 Miami Chairman, in the report.“Wealth migration to Miami remains high.

Buyers from high-taxed, high-density states continue to move here for our jobs, weather and lifestyle.”Cash rules everything around here — West Palm Beach was No.1 in the US last year with 49.6% of sales paid in full upfront, while Fort Lauderdale and Miami hit a respective 38.9% and 38.1%, according to ATTOM.That’s great if you’re loaded, but if you’re stuck with a mortgage and languishing high interest rates, good luck.Check out January 2025: Miami-Dade’s $1 million-plus house sales went up 3.1% to 164 deals, and the middle price for those homes jumped 7.1% to $675,000 — that’s a jaw-dropping 184.2% more than it was in January 2015.Condos aren’t cheap either — their middle price crept up 2.3% to $415,000, nearly 120% higher than a decade ago.“We’re seeing the spring market off to a healthy start, with sales and prices broadly up from one year ago,” sa...