By Gay Cororaton, MIAMI REALTORS Chief Economist
Key Takeaways
- Southeast Florida’s rapid price growth has created significant wealth for homeowners, with 90% of home equity due to price appreciation. Miami-Dade County has the highest expected home equity over a 15-year period, at $555,900 on a typical single-family home (vs. $306,600 nationally) and $342,600 on a typical condominium/townhome (vs. $252,000 nationally).
- Southeast Florida’s homeowners are equity rich. Homeowners who purchased a home 15 years ago at the median sales price and sold/valued the home at the median sales price in 2024 Q4 have an estimated home equity of 80% (vs. 75% nationally for single-family homes and 70% for condominiums/townhomes).
- The high levels of home equity mean that most homeowners are in a strong position to absorb price reductions due to rising supply of homes for sale. Slightly over half of homeowners are mortgage-free.
Access the 2024 Q4 Southeast Florida Home Equity Report HERE.
Miami-Dade County leads Southeast Florida in home equity gains
Over the 15-year period from 2009 Q4 through 2024 Q4, Southeast Florida’s home prices have generally increased at a rate surpassing the national increase in prices (6%): Miami-Dade County (9%), Broward County (8%), Palm Beach County (7%), Martin County (7%), and St. Lucie County (10%).
With the robust price appreciation and the principal payments made over the years, single-family homeowners who purchased a home at the median sales price 15 years ago in 2009 Q4 have built up significant home equity if the homes were sold or valued at the median sales prices in 2024 Q4: Miami-Dade County ($555,900), Broward County ($493,800), Palm Beach County ($474,900), Martin County ($461,900) and St. Lucie County ($335,300). Nationally, the expected home equity is $306,600. About 90% of the 15-year home equity comes from price appreciation and the remaining from the downpayment and principal payments.
The 15-year equity amounts to 80% of the median sales price in 2024 in Miami-Dade County (+82%), Broward County(+79%), Palm Beach County (+75%), Martin County (+76%), and St. Lucie County (+84%). Nationally, the typical home equity is 75%.
In the condominium/townhome market, Miami-Dade County also has the highest expected home equity ($342,600) on a home purchased 15 years ago at the median sales price and sold at the median sales price in 2024 Q4 at $342,600 while the 15-year home equity is less than $250,000 in Broward County ($230,300), Palm Beach County ($245,300), Martin County ($185,900) , and St. Lucie County ($232,500). Nationally, the expected home equity gain is $252,000.
Condominium/townhome owners who purchased a home 15 years ago at the median sales price and sold/valued the home at the median sales price in 2024 Q4 have around 80% home equity in Miami-Dade County (81%), Broward County (82%), Palm Beach County (79%), Martin County (77%), and St. Lucie County (80%).
With high levels of equity, most condominium/townhome homeowners are likely to absorb price reductions or and sell the property without being underwater (e.g., they can pay off the loan balance with the sale proceeds).
Six areas have $1 million or more in home equity
Over a 15 year period from 2009 Q4 through 2024 Q4, homeowners who purchased a home at the median sale price with a 10% downpayment and 30-year mortgage and sold/valued the home at the median sales price in 2024 have home equity of at least $ 1 million in seven geographic markets:
- Palm Beach town, Palm Beach County: $9.0 million (single-family home)
- Miami Beach, Miami-Dade County : $3.8 million (single-family home)
- Pinecrest Village, Miami-Dade County: $2.4 million (single-family home)
- Southwest Ranches, Broward County: $2.3 million (singe-family home)
- Coral Gables, Miami-Dade County: $1.5 million (single-family home)
- Miami Shores, Miami-Dade County: $1.2 million (single-family home)
- Bal Harbour Village, Miami-Dade County: $1.2 million (condominium/townhome)
- Palm Beach town, Palm Beach County: $1 million
