South Beach, Miami, is no longer as hot as it used to be.
At least, that's the case in the real estate market.
Fewer wealthy people are buying homes in the area — and it's partly because of the neighborhood's growing attraction as a spring break destination. So reported Candace Taylor for The Wall Street Journal: "Once famous for its art deco architecture and nightlife, it is gaining a reputation for crowds and wild partying," she wrote.
In the first quarter of 2019, South Beach condo sales fell by 11.6%, according to a Miller Samuel report. That stands out compared to trends across Miami-Dade County, where sales increased by less than one pe cent year or year, per the Real Deal. Across South Florida, sales have slowed overall.
More parties, less peace
College students are flocking to South Beach thanks to new hotels and efforts by other spring break destinations to curb partying, Taylor reported. Once there, they're creating brawls, traffic, and litter — all turn offs to high-end buyers. The glamorous neighborhood has also gained unwelcome grit: one real estate agent told Taylor that how "loud" and "dangerous" the neighborhood can be has led to lost appeal.
Meanwhile, chic dining, once limited to South Beach, has expanded to elsewhere in Miami, like Tigertail + Mary in in Coconut Grove and Ember Miami in the Design District.
Read more: NYC has a penthouse problem, LA has a mansion problem, and Miami has a condo problem
The South Beach dip signals larger luxury woes
In a separate article for The Wall Street Journal, Taylor reported that the city is faced with a surplus of condos due to economic forces, climate change, and evolving buyer preferences. Its high-end real-estate market has slowed in recent years, with condo sales in Miami Beach decreasing by 24% over the past four years, she observed.
In turn, some of these condos are taking years — like four to six — to finally sell, or so, Jerry Iannelli reported for Miami New Times in 2018.
Big cities nationwide are dealing with a luxury real-estate surplus. New York City is oversaturated with penthouses, which have been sitting on the market for months or even years. Some eventually receive a drastic price cut or are carved into two smaller apartments, Business Insider's Katie Warren previously reported.
Meanwhile, Los Angeles has a glut of mega-mansions and not enough buyers, reported Katherine Clarke for The Wall Street Journal.
Meanwhile, Miami sellers are hoping that wealthy buyers fleeing high-tax states like New York and California will turn up the heat in the real estate market. Maybe a movie trailer would help.
