Billionaires are driving South Florida home prices to new records

From Palm Beach to Miami Beach, luxury home prices in Florida’s richest enclaves are reaching new records as billionaires and millionaires continue to buy up property.

The average sale price of a home in Palm Beach topped $20 million in the third quarter, making it far and away the most expensive market in the country, according to data from Douglas Elliman and Miller Samuel. The average price per square foot of homes sold in Palm Beach reached $4,554, more than 2.5 times more expensive than Manhattan.

“The prices are mind-blowing,” said Chris Leavitt, a top Palm Beach broker with Douglas Elliman. “There is a very limited supply, especially at the ultra-high-net-worth end, where the clientele is all clambering for that amazing lake front or oceanfront property.”

South Florida’s mansion boom is being driven by the continued flight of millionaires and billionaires from high-tax states such as New York, New Jersey and California, as well as the growth of the Florida economy. Since ultra-wealthy buyers usually pay cash for their real estate, they’re less affected by soaring mortgage rates.